Enter your gross monthly salary below to see your PAYE, statutory deductions and take-home pay under the rules in force in October 2026. The calculator applies the Kenya Revenue Authority (KRA) monthly tax bands, the monthly personal relief of KES 2,400, the Social Health Insurance Fund (SHIF) at 2.75%, the Affordable Housing Levy at 1.5% and the NSSF Year 4 rates that took effect in February 2026.
How PAYE is calculated in 2026
PAYE is worked out in five steps. First, NSSF is deducted: 6% of pay up to the Lower Earnings Limit of KES 9,000 (Tier I, maximum KES 540) plus 6% of pay between KES 9,000 and the Upper Earnings Limit of KES 108,000 (Tier II, maximum KES 5,940). Second, SHIF is charged at 2.75% of gross salary, with a minimum of KES 300. Third, the employee’s Affordable Housing Levy is 1.5% of gross salary. KRA lists the Housing Levy and SHIF contributions as allowable deductions, and NSSF is a registered pension contribution, so all three reduce taxable pay.
Fourth, the KRA bands are applied to the remaining taxable pay:
| Monthly taxable pay (KES) | Rate |
|---|---|
| First 24,000 | 10% |
| Next 8,333 | 25% |
| Next 467,667 | 30% |
| Next 300,000 | 32.5% |
| Above 800,000 | 35% |
Finally, personal relief of KES 2,400 a month is subtracted from the tax. What is left is PAYE.
Worked example: KES 100,000 gross
NSSF is KES 540 + KES 5,460 = KES 6,000. SHIF is KES 2,750 and the Housing Levy is KES 1,500. Taxable pay is therefore KES 89,750. Tax on that is KES 2,400 + KES 2,083.25 + 30% of KES 57,417 (KES 17,225.10) = KES 21,708.35. After the KES 2,400 relief, PAYE is KES 19,308.35 and net pay is KES 70,441.65.
What this calculator leaves out
It does not include voluntary pension contributions above NSSF, post-retirement medical fund contributions, mortgage interest, insurance relief, non-cash benefits or loan deductions. If any of these apply to you, your payslip will differ. Your employer’s own NSSF (matched 6%) and Housing Levy (matched 1.5%) are not deducted from your pay.
Frequently asked questions
What is the personal relief in Kenya in 2026?
KRA sets personal relief at KES 2,400 a month (KES 28,800 a year). It is subtracted from the tax calculated on your taxable pay.
Are SHIF and the Housing Levy deducted before PAYE?
Yes. KRA lists Affordable Housing Levy deductions and SHIF contributions among the amounts deductible in working out taxable employment income.
How much NSSF is deducted in 2026?
From February 2026 the employee pays 6% of pay up to KES 108,000: up to KES 540 under Tier I and up to KES 5,940 under Tier II, so a maximum of KES 6,480 a month.
Who pays no PAYE?
If your taxable pay is KES 24,000 a month or less, the 10% tax (at most KES 2,400) is cancelled out by personal relief, so PAYE is nil.
Related: PAYE & net salary calculator · SHIF calculator · NSSF calculator · Housing Levy calculator · Bank loan calculators
Sources
- KRA – Pay As You Earn (PAYE) (checked 13 October 2026)
- NSSF – Notice to Employers, Year 4 (2026) Contribution Rates (checked 13 October 2026)
- Ministry of Health – Social Health Insurance Fund (SHIF) guide (checked 13 October 2026)
