TaxMate – Accurate Net Pay Calculator (KRA compliant)

Calculate your take-home salary after PAYE and other deductions such as NSSF contribution (Tier 1 & Tier 2), SHIF deduction, and housing levy deduction.

Net pay Calculator 2026

100% accurate net income calculator • Matches KRA

Enter your Gross Monthly Salary (KSh)

KSh

Gross Salary

KSh 50,000.00

Net Pay

KSh 39,029.15

NSSF (Employee) KSh 3,000.00

SHIF (2.75%) KSh 1,375.00

Housing Levy (1.5%) KSh 750.00

Taxable Pay KSh 44,875.00

Income Tax (before relief) KSh 8,245.85

Personal Relief – KSh 2,400.00

PAYE Tax Payable KSh 5,845.85

Total Deductions

KSh 10,970.85

Calculation based on official KRA net income calculation guidelines.

How the Taxmate Net Pay Calculator Works

Our calculators work by taking your gross salary and deducting all mandatory deductions required under Kenyan tax laws. Note that deductions vary based on your salary. The higher the salary, the higher the deductions.

The Taxmate calculator automatically deducts all your allowable deductions from your gross pay to give you your accurate net income

Complete deductions breakdown

To calculate your net pay, our net income calculator makes the following deductions.

PAYE

PAYE is Pay As You Earn. Your PAYE contribution is calculated using KRA tax bands in line with the Finance Act of 2023. Note that you’re also eligible for Ksh 2,400 tax relief. Use our PAYE calculator to calculate your PAYE and understand how your contribution is calculated.

National Social Security Fund (NSSF)

NSSF is a mandatory pension scheme established by the Kenyan government in 1965. The NSSF Act of 2013 split the NSSF contributions into tier 1 and tier. In 2026, tier 1 contributions are mandatory for all Kenyan employees earning at least KSh 9000 per month.

Tier 2 contribution applies to Kenyans earning from 9,001 and is capped at Ksh 108,000. Even if you earn KSh 1,000,000, the maximum amount that will be considered for Tier 2 contribution is KSh 108,000.

Use our NSSF calculator to calculate your NSSF calculation.

Social Health Insurance Fund

The Social Health Insurance Fund (SHIF/SHA) is a health insurance backed by the Kenyan government. It’s calculated at 2.75% of your gross salary, with the minimum contribution being KSh 300.

Affordable Housing Levy

The affordable housing levy is capped at 1.5% of your gross salary.

Other deductions include: Pension contributions, HELB contribution, mortgage, union dues, and more.

Example net pay calculation for a Kenyan earning KSh 50,000

Here is a step-by-step net pay calculation for a person earning KSh 50,000 per month.

1. Find gross pay

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 50,000

2. Calculate Allowed Deductions (SHIF, NSSF, & Affordable Housing Levy)

Social Health Insurance Fund (SHIF): 2.75% of 50,000 = KSh 1,375 per month
Affordable housing levy (1.5% of the gross income): 1.5% of 50000 = 750
NSSF deductions (Tier 1 and Tier 2, both at 6%)
Tier 1 – Tier 1 has a lower limit of Ksh 8, 000 hence Tier 1 contribution will be 6% of 8000 = Ksh 480
Tier 2 – Tier 2 is voluntary and applies to employees earning above Ksh 8,000 and capped at Ksh 72,000. To calculate the tier 2 contribution, we take the gross salary less the tier 1 contribution. In this case, it will be 50000 – 8000 = 42000, and then find the 6% of 4200,0 which is KSh 2,520.
The total employee NSSF contribution will be 480 + 2520 = Ksh 3000. Your employer is supposed to match your NSSF contribution.

Total allowed deductions

Deduction	Amount (KSh)	Explanation
NSSF (Employee)	3,000	6% on first KSh 9,000 (Tier I) + 6% on next KSh 41,000 (Tier II)
SHIF	1,375	2.75% of gross salary (50,000)
Affordable Housing Levy	750	1.5% of gross salary (50,000)
Total Allowed deductions	5,125

3. Find taxable pay

Taxable pay is the amount of 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:

The taxable pay will be: KSh 50000 – KSh 3385 = KSh 44615.

4. Calculate PAYE

To calculate PAYE for a taxable income of KSh 44615, we have to find the tax band in which the taxable pay falls.

Band 1 – 10% of 24000 = 2400
Band 2 – 25% of 8333 = 2083.25

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, which 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.

Total deductions including PAYE:

Deduction	Amount (KSh)	Explanation
NSSF (Employee)	3,000	6% on first KSh 9,000 (Tier I) + 6% on next KSh 41,000 (Tier II)
SHIF	1,375	2.75% of gross salary (50,000)
Affordable Housing Levy	750	1.5% of gross salary (50,000)
PAYE (Income tax)	5,845.85	After personal relief of KSh 2,400 and allowable deductions
Total Allowed deductions	10970.85

5. Calculate the net income

Net income is calculated by deducting all your deductions (Including your PAYE) from your gross salary.

Gross salary – All deductions = Net Income

50000 – 10970.85 = 39029.15

Therefore, the net income calculation for a Kenyan earning KSh 50,000 per month is KSh 39029.15.

What is the difference between gross salary and Net salary?

Your gross salary is your basic salary plus all your allowances, while your Net salary is your is the gross salary minus your deductions.