PAYE Calculator Kenya 2026 — Calculate Your Monthly Tax
Introduction
If you receive a salary in Kenya, you have likely seen deductions on your payslip and
asked:
"Why is my take-home pay lower than my gross salary?"
One of the main deductions is PAYE (Pay As You Earn) — the income tax deducted
from employment earnings. PAYE is calculated using progressive tax bands,
meaning higher income portions are taxed at different rates rather than one flat rate.
This guide explains how to estimate your monthly PAYE in simple terms.
What You Need Before Calculating PAYE
You typically need:
- Gross monthly salary
- NSSF deductions
- Housing Levy deductions
- Other allowable deductions (if applicable)
- Personal tax relief
Kenya PAYE Tax Bands (2026)
Current KRA PAYE guidance applies the following monthly bands:
| Monthly Taxable Income | Tax Rate |
|---|---|
| First KSh 24,000 | 10% |
| Next KSh 8,333 | 25% |
| Next KSh 467,667 | 30% |
| Next KSh 300,000 | 32.5% |
| Above KSh 800,000 | 35% |
Resident personal relief: KSh 2,400 per month
Simple PAYE Formula
Gross Salary
− Allowable deductions
= Taxable Income
Apply PAYE bands
− Personal Relief
= PAYE payable
Example 1: Gross Salary KSh 50,000
Assume:
- Gross salary → KSh 50,000
- NSSF → KSh 3,000
- Housing Levy → KSh 750
Taxable income:
KSh 50,000 − KSh 3,000 − KSh 750 = KSh 46,250
PAYE calculation:
- First KSh 24,000 × 10% = KSh 2,400
- Next KSh 8,333 × 25% = KSh 2,083
- Remaining KSh 13,917 × 30% = KSh 4,175
Total tax before relief:
KSh 8,658
Less personal relief:
KSh 2,400
Estimated PAYE:
KSh 6,258
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Example 2: Gross Salary KSh 100,000
Assume:
- Gross salary → KSh 100,000
- NSSF → KSh 6,000
- Housing Levy → KSh 1,500
Taxable income:
KSh 92,500
PAYE:
- First KSh 24,000 × 10%
- Next KSh 8,333 × 25%
- Remaining amount × 30%
Estimated PAYE:
KSh 20,133
Why Two Employees With Similar Salaries May Pay Different Tax
Possible reasons:
- Pension contributions
- Insurance relief
- Different taxable benefits
- Additional deductions
- Different relief eligibility
Common PAYE Mistakes
- Applying one tax rate to the entire salary
- Forgetting personal relief
- Ignoring allowable deductions
- Confusing gross salary with taxable income
Frequently Asked Questions
Is PAYE a flat tax?
No. Kenya uses progressive tax bands where portions of income are taxed at different rates.
Does everyone get personal relief?
Resident taxpayers are entitled to KSh 2,400 monthly personal relief.
Can PAYE change during the year?
Yes. Changes to tax laws and finance legislation can affect rates and deductions.
Key Takeaway
A simple way to think about PAYE:
Gross Salary → Deductions → Taxable Income → Tax Bands → Relief → PAYE
Your gross salary is not your take-home pay. Understanding how PAYE works helps
you estimate your income, budget better, and plan your finances.
Also read: gross vs net salary explained, your payslip deductions guide, the tax-free salary threshold in Kenya, how to file KRA iTax returns, and Money Market Funds on Serrari for growing your take-home savings.
