Kenya PAYE Income Tax Calculator
Estimate your 2026 PAYE income tax using KRA's five progressive bands and the annual personal relief.
What this calculator does
Estimates your Kenyan PAYE income tax using KRA's five progressive bands, then applies the flat annual personal relief every resident employee receives regardless of income level.
Who this is for
Kenyan employees estimating their PAYE deduction, anyone comparing a job offer, or people wanting to understand why their actual PAYE differs from a naive calculation on gross salary.
How this calculator works
Uses KRA's 2026 five-band PAYE system (10% up to KES 288,000/year, rising to 35% above KES 9,600,000/year), then subtracts the annual personal relief of KES 28,800, which every resident employee receives regardless of income level.
Worked example
KES 600,000 annual taxable income: KES 288,000 × 10% = KES 28,800. Next KES 100,000 (to 388,000) × 25% = KES 25,000. Remaining KES 212,000 (to 600,000) × 30% = KES 63,600. Gross tax = 28,800 + 25,000 + 63,600 = KES 117,400. Subtract the KES 28,800 personal relief: KES 88,600 net PAYE payable — an effective rate of about 14.8% on the full income.
Where your income goes
Run the calculator above to see the tax vs. take-home split.
2026 PAYE band breakdown
Run the calculator above to see your income split across bands.
Common mistakes
- Applying PAYE to gross salary instead of taxable pay. NSSF, SHIF, and the Housing Levy are deducted first, so real PAYE is usually lower than a calculation on raw gross salary.
- Forgetting the personal relief is a flat credit, not an exemption. It's subtracted from calculated tax, not from income, and is the same KES 28,800 regardless of how much you earn.
- Assuming the whole salary is taxed at the top band. Even at KES 2 million/year, only the portion above each threshold is taxed at that band's rate — the rest is taxed progressively through the lower bands.
- Not claiming insurance or mortgage interest relief. Beyond the automatic personal relief, eligible life insurance premiums and mortgage interest can further reduce tax payable if properly claimed, which this simplified calculator doesn't model.
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Frequently Asked Questions
Why is the personal relief subtracted from tax instead of income?
KRA structures it as a tax credit (KES 28,800 off your calculated tax bill), not a deduction from taxable income. This means every eligible resident gets the exact same shilling-for-shilling benefit regardless of income level, unlike a deduction which would benefit higher earners more.
What is the personal relief?
Every resident employee gets KES 28,800 per year (KES 2,400/month) subtracted directly from their calculated tax — not from income — which is why incomes at or below roughly KES 24,000/month often owe zero PAYE.
Does this include NSSF, SHIF, or the Housing Levy?
No, this calculator taxes gross annual income directly. In practice, NSSF, SHIF (2.75% of gross), and the Affordable Housing Levy (1.5% of gross) are deducted from pay before PAYE is calculated, which would lower your real taxable income and tax below this estimate.
How high can the marginal rate go?
Up to 35%, which applies to the portion of annual income above KES 9,600,000 (KES 800,000/month) — introduced by the Finance Act 2023.