Kenya PAYE & Net Salary Calculator 2025
Calculate your take-home salary with updated rates - PAYE, NSSF (Feb 2025), SHIF, and Housing Levy
Compare 2 Job Offers Side-by-Side
See which offer gives you better take-home pay!
PAYE Calculator
Salary & Deductions
Tax-Deductible Contributions (Optional)
These reduce your taxable income and lower your PAYE tax
Related Calculators
Explore other tools to help with your salary and tax planning
How to Use the PAYE Calculator
Follow these simple steps to calculate your income tax and net salary accurately
Enter Your Salary
Input your gross monthly salary in the Basic Salary field
Add Benefits (Optional)
Include housing allowance, car allowance, or other taxable benefits if applicable
Add Deductions (Optional)
Enter pension, mortgage interest, or medical fund contributions for tax relief
View Results
See your PAYE tax, all deductions, and net take-home salary breakdown
?? Pro Tip: Use the Employee/Employer toggle to see the total cost to your employer including their NSSF contributions and levies.
How to Calculate PAYE in Kenya - Video Tutorial
Watch this step-by-step guide to calculating PAYE, NSSF, SHIF, and understanding your net salary in Kenya.
Frequently Asked Questions (FAQ)
Everything you need to know about PAYE tax in Kenya
What is PAYE and how does it work in Kenya??
PAYE (Pay As You Earn) is a system of income tax collection where employers deduct tax from employees' salaries before payment. In Kenya, PAYE is managed by the Kenya Revenue Authority (KRA).
How it works:
- Tax is deducted monthly from your gross salary
- Uses progressive tax bands (higher income = higher tax rate)
- Employer remits tax to KRA by the 9th of the following month
- You receive your net salary after deductions
- Annual personal relief of KES 28,800 (KES 2,400/month) reduces your tax
What are the current PAYE tax rates for 2025 in Kenya??
Kenya PAYE Tax Bands 2025:
| Monthly Taxable Income | Tax Rate | Annual Equivalent |
|---|---|---|
| Up to KES 24,000 | 10% | Up to KES 288,000 |
| KES 24,001 - 32,333 | 25% | KES 288,001 - 388,000 |
| KES 32,334 - 500,000 | 30% | KES 388,001 - 6,000,000 |
| KES 500,001 - 800,000 | 32.5% | KES 6,000,001 - 9,600,000 |
| Above KES 800,000 | 35% | Above KES 9,600,000 |
Note: Personal relief of KES 2,400/month (KES 28,800/year) is deducted from calculated tax.
What deductions are taken from my salary besides PAYE??
Statutory Deductions (Mandatory):
- PAYE Tax: Based on progressive tax bands (10%-35%)
- NSSF (Pension): Use the NSSF calculator for accurate Tier I & II calculations
- Tier I: 6% of first KES 7,000 (max KES 420)
- Tier II: 6% of KES 7,001 - KES 36,000 (max KES 1,740)
- Total maximum: KES 2,160/month
- SHIF (Social Health Insurance Fund): 2.75% of gross salary (min KES 300). Calculate your contribution with our SHIF calculator.
- Housing Development Levy: 1.5% of gross salary
Optional Deductions:
- Pension contributions (for tax relief)
- Mortgage interest (for tax relief) - use the mortgage calculator to estimate
- Personal insurance premiums (15% relief, max KES 5,000/month) - see our insurance calculator
- Savings and cooperative society contributions - calculate returns with our SACCO calculator
What is personal relief and how does it reduce my PAYE tax??
Personal Relief is a tax reduction granted to all employed individuals in Kenya to reduce their tax burden.
Current Rate (2025):
- Monthly: KES 2,400
- Annual: KES 28,800
How it works:
- Calculate gross tax using tax bands
- Subtract KES 2,400 from the gross tax
- The result is your net PAYE tax payable
Example:
If your gross tax = KES 5,000
Personal relief = KES 2,400
Net PAYE = KES 2,600
Note: Everyone gets this relief automatically - no application needed.
How can I reduce my PAYE tax legally in Kenya??
Legal Ways to Reduce PAYE Tax:
1. Pension Contributions
Contribute to a registered pension scheme - contributions are allowable deductions that reduce your taxable income.
2. Mortgage Interest Relief
If you have a home loan, mortgage interest (up to KES 300,000/year) is deductible from taxable income. Use our mortgage calculator to see how much you can save.
3. Insurance Premium Relief
Get 15% tax relief on life insurance, education, and health insurance premiums (combined max KES 5,000/month or KES 60,000/year). Estimate premiums with our insurance calculator.
4. Medical Fund Contributions
Contributions to registered medical funds reduce your taxable income.
Important: Always consult with a tax advisor or accountant to ensure compliance with KRA regulations.
What is the difference between gross salary, taxable income, and net salary??
Gross Salary
Your total salary before any deductions. This includes:
- Basic salary
- Housing allowance (if applicable)
- Transport allowance
- Other taxable benefits
Taxable Income
Gross salary minus allowable deductions:
- Gross Salary
- Minus: NSSF contributions
- Minus: SHIF contributions
- Minus: Pension contributions
- Minus: Mortgage interest
- = Taxable Income (this is what PAYE tax is calculated on)
Net Salary (Take-Home Pay)
What you actually receive after all deductions:
- Gross Salary
- Minus: PAYE Tax
- Minus: NSSF
- Minus: SHIF
- Minus: Housing Levy
- Minus: Other deductions (loans, SACCOs, etc.)
- = Net Salary (amount deposited to your bank)
Need to reverse calculate? Use our gross salary calculator to find the gross from your desired net.
Example:
Gross Salary: KES 100,000
Taxable Income: ~KES 94,000 (after NSSF & SHIF)
Net Salary: ~KES 76,000 (after all deductions)
When is PAYE tax due and who is responsible for payment??
Employer Responsibility:
- Deduction: Employer must deduct PAYE from employee salaries each month
- Payment Deadline: 9th of the following month
- Filing: Submit P10 form via iTax portal showing all deductions
- Annual Return: File annual return by end of February
- P9 Form: Issue P9 form to employees annually
Employee Responsibility:
- Provide accurate information (PIN, exemptions, etc.)
- Verify monthly payslip deductions
- Keep P9 forms for tax filing
- Report any discrepancies to employer or KRA
?? Penalties for Late Payment:
5% of unpaid tax + 1% per month (max 100% of unpaid amount)
Possible prosecution for non-compliance
What are taxable and non-taxable benefits in Kenya??
? Taxable Benefits (Add to gross income):
- Housing allowance
- Transport/car allowance
- Airtime allowance
- Entertainment allowance
- Risk/danger allowance
- Commuter allowance
- Bonus/commission
- Overtime pay
- Director's fees
- Value of company car (20%-30%)
- Low-interest loans benefit
? Non-Taxable Benefits:
- Employer NSSF contributions
- Medical cover (if reasonable)
- Group life insurance
- Staff meals (if available to all)
- Uniforms/protective gear
- Training and education (job-related)
- Retirement gratuity
- Retrenchment/redundancy pay
- Death/disability benefits
- Leave pay (normal leave)
?? Important: If you receive housing from your employer, a deemed benefit is calculated as 15% of your total cash emoluments and added to taxable income.
How do I calculate PAYE tax manually??
Step-by-Step PAYE Calculation:
Step 1: Calculate Gross Salary
Basic Salary + Allowances + Benefits = Gross Salary
Step 2: Calculate Allowable Deductions
NSSF (max KES 2,160) + SHIF (2.75%) + Pension + Mortgage Interest
Step 3: Calculate Taxable Income
Gross Salary - Allowable Deductions = Taxable Income
Step 4: Apply Tax Bands
� First KES 24,000 � 10% = KES 2,400
� Next KES 8,333 � 25% = KES 2,083
� Remainder � 30% (or higher bands)
Step 5: Subtract Personal Relief
Gross Tax - KES 2,400 = Net PAYE
Step 6: Calculate Net Salary
Gross Salary - (PAYE + NSSF + SHIF + Housing Levy + Other Deductions)
?? Pro Tip: Use our calculator above to get instant, accurate results without manual calculations!
Where can I get official information about PAYE tax in Kenya??
Official Resources:
Kenya Revenue Authority (KRA)
Website: www.kra.go.ke
iTax Portal: itax.kra.go.ke
Call Centre: 0711 099 999 / 0730 333 333
Laws & Regulations
- Income Tax Act (Cap 470)
- Employment Act 2007
- Social Health Insurance Act 2023
- NSSF Act 2013
?? Kenya Salary Examples: PAYE & Net Pay Breakdown 2025
See exactly what you'll take home at different salary levels across Kenya. All calculations include PAYE, NSSF, SHIF, and Housing Levy based on official KRA rates. Browse jobs in Kenya to find opportunities matching these salary ranges.
Entry Level Salaries (KES 20,000 - KES 50,000)
KES 30,000/month
Common for: Interns, junior clerks, entry-level retail
KES 50,000/month
Common for: Office assistants, customer service, junior sales
Mid-Level Salaries (KES 60,000 - KES 150,000)
KES 80,000/month
Teachers, nurses, supervisors
KES 100,000/month
IT professionals, accountants
KES 150,000/month
Senior managers, engineers
Senior & Executive Salaries (KES 200,000+)
KES 200,000/month
Directors, senior managers
KES 300,000/month
C-suite executives, specialists
KES 500,000/month
CEOs, top executives
?? Note: All figures based on Kenya Revenue Authority (KRA) 2025 tax rates. Calculations assume no additional deductions (pension, mortgage, insurance). Net pay will be higher with allowable tax relief claims.
??? Regional Salary Guide: What You Need in Different Kenyan Cities 2025
Cost of living varies significantly across Kenya. Here's what different net salaries can afford you in major cities based on KNBS 2025 data.
Nairobi - Highest Cost of Living
KES 50,000 net (Single person)
� Bedsitter in Umoja/Donholm: KES 12,000-15,000
� Food & utilities: KES 15,000-20,000
� Transport: KES 6,000-8,000
� Savings potential: KES 7,000-15,000
KES 100,000 net (Small family)
� 2BR in Kasarani/Ruiru: KES 25,000-35,000
� Food, utilities, household: KES 30,000-40,000
� Transport, school: KES 15,000-20,000
� Savings potential: KES 5,000-30,000
KES 200,000+ net (Comfortable living)
� 3BR in Kilimani/Lavington: KES 60,000-100,000
� Quality lifestyle maintained
� Good schools, car, entertainment
� Strong savings/investment capacity
Mombasa, Kisumu, Nakuru - Medium Cost
KES 40,000 net (Single person)
� 1BR apartment: KES 10,000-15,000
� Food & utilities: KES 12,000-15,000
� Transport: KES 3,000-5,000
� Savings potential: KES 5,000-15,000
KES 80,000 net (Small family)
� 2-3BR house: KES 20,000-30,000
� Household expenses: KES 25,000-35,000
� Education, transport: KES 10,000-15,000
� Savings potential: KES 10,000-25,000
KES 150,000+ net (Comfortable)
� Premium housing: KES 40,000-60,000
� Excellent quality of life
� Significant disposable income
Eldoret, Nyeri, Machakos - Lower Cost
KES 30,000 net (Single person)
� Bedsitter/1BR: KES 6,000-10,000
� Food & utilities: KES 8,000-12,000
� Transport: KES 2,000-4,000
� Good savings potential: KES 4,000-14,000
KES 60,000 net (Small family)
� 2-3BR house: KES 15,000-25,000
� Household costs: KES 20,000-25,000
� Comfortable living standards
� Strong savings: KES 10,000-25,000
KES 100,000+ net (Premium)
� Top-tier housing available
� Very comfortable lifestyle
� Excellent savings capacity
Rural & Small Towns - Lowest Cost
KES 25,000 net (Single person)
� Housing: KES 4,000-8,000
� Food: KES 6,000-10,000
� Very affordable living
� Savings: KES 5,000-15,000
KES 50,000 net (Family)
� Quality housing: KES 10,000-20,000
� All needs comfortably met
� Excellent savings potential
KES 80,000+ net (Premium)
� Top living standards in area
� Significant wealth accumulation
?? Data Source: Cost of living estimates based on Kenya National Bureau of Statistics (KNBS) Q4 2024 and Q1 2025 consumer price index data and housing market surveys.
Reference: Kenya National Bureau of Statistics - Economic Surveys 2025
?? Smart Tax Optimization: Legally Reduce Your PAYE in Kenya 2025
Maximize your take-home pay by utilizing all available tax deductions and reliefs. These strategies are 100% legal and KRA-approved.
1. Maximize Pension Contributions
Up to KES 30,000/month (KES 360,000/year) is tax-deductible
Example: KES 100,000 salary
Plus you're building retirement wealth!
2. Claim Mortgage Interest Relief
Up to KES 30,000/month (KES 360,000/year) for home loans
Example: KES 150,000 salary
While building home equity! Use our mortgage calculator to plan your home loan.
3. Insurance Premium Relief (15%)
Get 15% tax relief on premiums up to KES 5,000/month
Maximum benefit calculation
Covers life, education, and health insurance premiums
4. Post-Retirement Medical Fund
Up to KES 15,000/month tax-deductible
Example: KES 200,000 salary
Secure healthcare for retirement years
?? Maximum Tax Optimization Scenario
Before Optimization (KES 200,000 gross)
After Full Optimization
The Smart Truth:
While net cash is lower (KES 112,070 vs KES 154,670), you're actually KES 22,400/month better off because:
- KES 30,000 in your pension (your money + employer match)
- KES 25,000 reducing your mortgage (building home equity)
- KES 15,000 in medical fund (future healthcare)
- KES 5,000 insurance (family protection)
- You saved KES 22,400 in tax while building KES 75,000 in assets!
?? Legal Compliance: All strategies are approved by Kenya Revenue Authority (KRA) under the Income Tax Act (Cap 470). Ensure contributions are to registered/approved schemes.
?? Complete Tax Optimization Guide for Kenya 2025
Legally reduce your PAYE tax and maximize take-home salary using these proven strategies approved by KRA.
1. Maximize Pension Contributions (Save up to KES 10,500/month)
Contribute up to KES 30,000/month to registered pension scheme and reduce taxable income. For KES 150,000 salary: tax saved = KES 10,500/month = KES 126,000/year. Plus pension grows tax-free!
2. Mortgage Interest Relief (Save up to KES 10,500/month)
Deduct mortgage interest up to KES 30,000/month. Submit certificate from bank to employer. Combine with pension relief for maximum savings!
3. Medical Insurance Relief (Save KES 750/month)
Get 15% relief on medical insurance premiums up to KES 5,000/month. Covers self, spouse, children, parents.
?? Salary Negotiation Guide Kenya 2025
Know Your Industry Rates
?? Common Payroll Errors (Check Your Payslip!)
1. Incorrect NSSF (Old Rates)
Should be KES 480-4,320/month not KES 200/400. Check your payslip!
2. Missing Personal Relief
Every employee gets KES 2,400/month relief. If not applied, you overpay!
3. No SHIF Deduction
Should be 2.75% of gross (min KES 300). If missing, no health coverage!
PAYE Tax Examples by Salary Level Kenya 2025
Real-world salary examples showing PAYE tax, NSSF, SHIF, Housing Levy, and net take-home pay for different income levels in Kenya. All calculations based on official KRA 2025 tax rates, NSSF February 2025 rates, and SHIF 2.75% rate effective October 2024.
| Gross Salary | NSSF | SHIF (2.75%) | Housing Levy | PAYE Tax | Net Salary | Effective Tax Rate | Common Professions |
|---|---|---|---|---|---|---|---|
| KES 30,000 | KES 480 | KES 825 | KES 450 | KES 552 | KES 27,693 | 1.84% | Entry Level Clerk, Watchman, Shop Attendant |
| KES 50,000 | KES 480 | KES 1,375 | KES 750 | KES 3,152 | KES 44,243 | 6.3% | Teacher, Nurse, Junior Accountant, Sales Executive |
| KES 75,000 | KES 480 | KES 2,063 | KES 1,125 | KES 8,402 | KES 62,930 | 11.2% | Senior Accountant, Bank Officer, Mid-Level Engineer |
| KES 100,000 | KES 480 | KES 2,750 | KES 1,500 | KES 13,652 | KES 81,618 | 13.65% | IT Specialist, Marketing Manager, Architect |
| KES 150,000 | KES 480 | KES 4,125 | KES 2,250 | KES 26,402 | KES 116,743 | 17.6% | Senior Manager, Doctor, Lawyer, Senior Engineer |
| KES 200,000 | KES 480 | KES 5,500 | KES 3,000 | KES 42,652 | KES 148,368 | 21.33% | Director, CEO (Small Firm), Senior Consultant |
| KES 300,000 | KES 4,320 | KES 8,250 | KES 4,500 | KES 76,402 | KES 206,528 | 25.47% | Senior Director, CEO (Mid-size), Executive |
| KES 500,000 | KES 4,320 | KES 13,750 | KES 7,500 | KES 146,402 | KES 328,028 | 29.28% | CEO (Large Corp), C-Suite Executive |
?? Key Insights from the Data
Entry-level employees earning KES 30,000 pay only 1.84% effective tax rate (KES 552 PAYE), while senior executives earning KES 500,000 pay 29.28% (KES 146,402 PAYE). Kenya's progressive tax system means higher earners contribute proportionally more. The biggest deduction for high earners is PAYE tax, while low earners are more affected by SHIF and Housing Levy percentages.
Cost of Living by Region in Kenya 2025
Compare the cost of living across different Kenyan cities to understand how far your salary goes. Data from KNBS Economic Survey 2025 and market research. Use this table to determine the minimum comfortable salary needed in each region.
| Region/City | 1BR Rent | 2BR Rent | Monthly Food | Transport | Utilities | Min Comfortable Salary | Cost vs Nairobi |
|---|---|---|---|---|---|---|---|
| Nairobi | KES 25,000 | KES 40,000 | KES 15,000 | KES 8,000 | KES 5,000 | KES 80,000 | 100% (Base) |
| Mombasa | KES 18,000 | KES 30,000 | KES 13,000 | KES 6,000 | KES 6,000 | KES 60,000 | 85% |
| Kisumu | KES 12,000 | KES 20,000 | KES 10,000 | KES 5,000 | KES 4,000 | KES 45,000 | 70% |
| Nakuru | KES 10,000 | KES 18,000 | KES 9,000 | KES 4,500 | KES 3,500 | KES 40,000 | 65% |
| Eldoret | KES 9,000 | KES 15,000 | KES 8,000 | KES 4,000 | KES 3,000 | KES 35,000 | 60% |
| Nyeri | KES 8,000 | KES 14,000 | KES 7,500 | KES 3,500 | KES 3,000 | KES 32,000 | 58% |
?? Nairobi vs Other Cities Comparison
Living in Nairobi requires the highest salary in Kenya, with a minimum comfortable salary of KES 80,000. To maintain the same lifestyle:
- Mombasa: Only 85% needed (KES 68,000 Nairobi salary = KES 60,000 in Mombasa)
- Kisumu: Only 70% needed (KES 80,000 Nairobi salary = KES 56,000 in Kisumu)
- Eldoret: Only 60% needed (KES 80,000 Nairobi salary = KES 48,000 in Eldoret)
- Nyeri: Only 58% needed (KES 80,000 Nairobi salary = KES 46,400 in Nyeri)
Key Takeaway: A KES 50,000 salary in Nairobi is challenging, but the same salary in Eldoret or Nyeri provides a very comfortable lifestyle. Consider remote work opportunities to earn Nairobi salaries while living in lower-cost regions.
Related Salary & Tax Calculators
Complete your salary planning with these essential Kenya calculators. All updated with 2025 rates and KRA-compliant.
Gross Salary Calculator
Convert net salary to gross or vice versa. Perfect for salary negotiations and job offers.
NSSF Calculator
Calculate Tier I & II pension contributions. Plan your retirement savings with 2025 rates.
SHIF Calculator
Calculate 2.75% Social Health Insurance deductions that replaced NHIF.
Mortgage Calculator
Calculate mortgage payments and get 30% tax relief on interest (max KES 30,000/month).
Loan Calculator
Calculate personal loan repayments with amortization schedule.
Construction Cost Calculator
Plan building costs with KNBS 2025 data. Essential for homeownership planning.
?? Salary Planning Tip: Use the Gross Salary Calculator to negotiate job offers, then calculate your PAYE, NSSF, and SHIF deductions above. If planning to buy a home, check mortgage affordability and get tax relief on mortgage interest up to KES 30,000/month.
Are You a Business Owner?
If you're running a business in Kenya, you may also need these tax calculators:
Important Disclaimer
General Information Only: This calculator provides estimates based on publicly available information and standard rates. Results are for informational and educational purposes only and should not be considered as professional financial, legal, or tax advice.
Accuracy and Updates: While we strive to maintain accurate and up-to-date information using official sources including Kenya Revenue Authority (KRA), National Social Security Fund (NSSF), Social Health Insurance Fund (SHIF), and other relevant government agencies, rates and regulations may change. Always verify current rates with official sources.
Seek Professional Advice: For specific tax planning, salary negotiations, financial decisions, or legal matters, please consult with qualified professionals such as certified accountants, tax advisors, financial planners, or legal practitioners who can consider your individual circumstances.
No Liability: Top Calculator and its operators accept no liability for any loss, damage, or inconvenience arising from the use of this calculator or reliance on its results. Users are responsible for verifying all calculations and information with official sources before making financial decisions.
Official Sources: For authoritative information, please refer to:
- Kenya Revenue Authority (KRA) - www.kra.go.ke
- National Social Security Fund - www.nssfkenya.co.ke
- Social Health Insurance Fund - www.sha.go.ke
Last updated: January 2025. This disclaimer applies to all calculators on Top Calculator.
Calculator updated with 2025 rates: NSSF (Feb 2025), SHIF (Oct 2024), PAYE tax bands (July 2023)
All calculations verified against official KRA guidelines and KNBS 2025 Economic Survey data
?? Official Sources & References:
Tax rates and deductions verified from Income Tax Act (Cap 470), Finance Act 2023, NSSF Act 2013, and Social Health Insurance Act 2023