TaxMate – Most Accurate PAYE calculator in Kenya
Enter your gross salary to automatically calculate your NSSF contribution, SHIF, Affordable housing levy, and PAYE.
Payslip Results
| Basic Pay | 0.00 |
| NSSF | 0.00 |
| SHIF | 0.00 |
| Housing Levy | 0.00 |
| Taxable Pay | 0.00 |
| Income Tax | 0.00 |
| Personal Relief | 0.00 |
| P.A.Y.E | 0.00 |
| Pay After Tax | 0.00 |
| Net Pay | 0.00 |
Calculation based on official KRA PAYE calculation guidelines.
How PAYE is calculated in Kenya
PAYE, also known as Pay As You Earn, is a tax deducted from your salary by your employer and remitted to the Kenya Revenue Authority on or before the 9th of next month, i.e PAYE for September should be paid on or before 9th October.
Your individual tax rate is calculated based on individual tax rate deducted from your salary is based on progressive tax bands introduced in the Finance Act of 2023. Our PAYE calculator automatically determines your tax band once you enter your gross salary.
Taxmate is an accurate PAYE tax calculator that automatically calculates your monthly Pay As You Earn (PAYE) tax based on your taxable pay. We automatically calculate taxable pay buy subtracting your allowable deduction ( NSSF (Tier 1 and Tier), SHIF contribution, and Affordable Housing Levy) from your gross pay.
This calculator automatically applies KRA tax bands to your taxable pay to find your eligible monthly PAYE. Enter your Gross pay and click calculate to find your monthly PAYE.
How PAYE is calculated in Kenya
Your tax rate per month or per year is calculated by subtracting all allowable deductions from your gross salary to determine your chargeable income (taxable income after all deductions).
Once you have calculated your taxable income, apply the KRA tax bands as provided in the Finance Act of 2023 to determine your PAYE.
But wait, that’s not all! You are entitled to a tax relief of KSh 2,400 per month, which is subtracted from your PAYE to “Lighten your tax burden”. Our PAYE calculator automatically and accurately determines your tax based on your taxable income.
KRA TAX bands 2025
|
Tax band per month |
Tax band per year |
Tax rate in % |
|---|---|---|
|
On the first KShs. 24,000 |
On the next KShs.288,000 |
10% |
|
On the next KShs. 8,333 |
On the next KShs.100,000 |
20% |
|
On the next KShs. 467,667 |
On the next KShs. 5,612,000 |
30% |
|
On the next KShs.300,000 |
On the next KShs. 3,600,000 |
32.5% |
|
On all income above KShs. 800,00 |
On all income above KShs. 9,600,000 |
35% |
PAYE allowable deductions in Kenya
The taxman does not tax every coin in your gross income. There are some allowable monetary deductions before determining your taxable income.
Our PAYE calculator automatically makes these deductions for you based on your gross salary. It automatically deducts your National Social Security Fund contribution (Tier 1 and Tier 2) both tiers at 6%, Affordable Housing levy (Capped at 1.5% of your gross pay), and Social Health Insurance Fund (capped at 2.75% of gross income, with the lowest contribution set at KSh 300).
Other allowable deuctions include; Post-retirement medical fund not exceeding Ksh 15,000 per month and Mortgage interest not exceeding Ksh 30,000 per month.
Example PAYE calculation for a Kenyan earning KSh 50,000
1. Find Gross salary
Gross salary is your total earnings which includes your basic pay and all allowances (i.e house allowance, commuter allowance and more) before deductions and taxes. For our case, the gross salary is KSh 50, 000.
Gross salary is KSh 50000
2. Calculate Deductions
Total Deductions
SHIF contribution (KSh 1,375) + Affordable Housing Levy (KSh 750) + NSSF contribution (KSh 3000) = Ksh 3385.
3. Find Taxable pay
Taxable pay is amount your salary that can be taxed. In Kenya, taxable pay is calculated by subtracting your total allowed deductions from your gross pay. In our case it will be:
KSh 50000 – KSh 3385 = KSh 44615.
Taxable pay is KSh 44615
Calculate PAYE
To calculate PAYE for a taxable income of Ksh 44615, we have to first find the tax band in which taxable pay falls in.
Income taxed so far – Ksh 24,000 + 8,333 = KSh 32,333 therefore the remaining income will be 44,875 − 32,333 = KSh 12,542
Since this falls within the third tax band, the total paye before relief will be 30% of 12,542 wich is equal to 3,762.60
Total PAYE Will be (band 1 + band 2 + band 3) – tax relief ( 2400 + 2083.25 + 3,762.60 – 2400 = 5845.85). The total PAYE for a Kenyan earning KSh 50000 per month is KSh 5845.85. Using our PAYE calculator and others available online, you will ge the same figure.