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PAYE Calculator

Basic Salary:
Benefits: (Allowances)
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Housing Levy Fund
NSSF Contribution
Taxable Income
Personal Relief
PAYE
NHIF Contribution
Net Pay

PAYE Rates in Kenya

New income tax rates were introduced in Kenya on January 1, 2022. The rates are progressive, meaning that the higher your income, the higher your tax rate. There is also a personal relief of Ksh2,400 per month, which is subtracted from your tax payable.

How PAYE is Calculated

PAYE is calculated by first determining your taxable income. This is done by subtracting your pension contributions from your gross income. Your taxable income is then taxed using the progressive income tax rates.

Example of PAYE Calculations

Let’s say Diana Chebet has a gross monthly income of Ksh50,000. Her NSSF pension contribution is Ksh1,080, so her taxable income is Ksh48,920. Her tax is calculated as follows:

Taxable Income Rate Tax
Ksh24,000 10% Ksh2,400
Ksh8,333 25% Ksh2,083
Ksh16,587 30% Ksh4,976

Total Tax: Ksh9,459

PAYE is then calculated by subtracting the personal relief from the total tax. In this case, Diana’s PAYE is Ksh7,059.

Other Deductions

In addition to PAYE, there are other deductions that may be made from your salary, such as NSSF contributions and NHIF contributions.

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