PAYE Calculator
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.