Kenya PAYE Tax Calculator 2026 โ KRA Income Tax
Calculate Kenya PAYE income tax 2026 with NSSF, NHIF, Affordable Housing Levy, and personal relief. Monthly and annual breakdown. KES formatting.
KES
Total gross monthly salary before any deductions KES
Max: 30% of gross or KES 20,000/month KES
Life/education/health insurance โ 15% relief, max KES 5,000 relief/month KES 0
Monthly Net Pay
KES 0
PAYE Tax
KES 0
NSSF
KES 0
Total Deductions
Monthly Pay Slip Breakdown
| Item | Monthly (KES) | Annual (KES) |
|---|
PAYE Bracket Calculation
| Annual Income Band (KES) | Rate | Tax (KES) |
|---|
Kenya PAYE 2026 โ How It Works
Kenya's PAYE system taxes employment income progressively. Your employer deducts PAYE, NSSF, NHIF, and the Affordable Housing Levy from your gross salary each month and remits them to KRA (Kenya Revenue Authority) and the relevant agencies by the 9th of the following month.
2026 PAYE Brackets (Annual)
KES 0 โ 288,000/year: 10%
KES 288,001 โ 388,000/year: 25%
KES 388,001 โ 6,000,000/year: 30%
KES 6,000,001 โ 9,600,000/year: 32.5%
Above KES 9,600,000/year: 35%
Less: Personal Relief KES 28,800/year (KES 2,400/month)
KES 288,001 โ 388,000/year: 25%
KES 388,001 โ 6,000,000/year: 30%
KES 6,000,001 โ 9,600,000/year: 32.5%
Above KES 9,600,000/year: 35%
Less: Personal Relief KES 28,800/year (KES 2,400/month)
Example Calculation
James, KES 150,000/month gross, KES 10,000 pension, KES 3,000 insurance:
Taxable income: 150,000 โ 10,000 (pension) = KES 140,000/month = KES 1,680,000/year
PAYE: 28,800 ร 10% + 8,333 ร 25% + (1,680,000 โ 388,000) ร 30% โ 28,800 relief
PAYE = 2,880 + 2,083 + 387,600 ร 30% = ~KES 119,043/year = ~KES 9,920/month
Insurance relief: 3,000 ร 15% = KES 450/month
PAYE after relief: ~KES 9,470/month
Taxable income: 150,000 โ 10,000 (pension) = KES 140,000/month = KES 1,680,000/year
PAYE: 28,800 ร 10% + 8,333 ร 25% + (1,680,000 โ 388,000) ร 30% โ 28,800 relief
PAYE = 2,880 + 2,083 + 387,600 ร 30% = ~KES 119,043/year = ~KES 9,920/month
Insurance relief: 3,000 ร 15% = KES 450/month
PAYE after relief: ~KES 9,470/month
Extended
Employer-Side Costs & Annual Summary
Full employer cost breakdown plus annual PAYE, NSSF, NHIF, and housing levy totals
Employer-Side Costs
Total cost to employer per employee per month, including mandatory contributions.
NHIF / SHA Premium Scale (Graduated)
| Monthly Gross Salary (KES) | NHIF Premium (KES/month) |
|---|---|
| 0 โ 5,999 | 150 |
| 6,000 โ 7,999 | 300 |
| 8,000 โ 11,999 | 400 |
| 12,000 โ 14,999 | 500 |
| 15,000 โ 19,999 | 600 |
| 20,000 โ 24,999 | 750 |
| 25,000 โ 29,999 | 850 |
| 30,000 โ 34,999 | 900 |
| 35,000 โ 39,999 | 950 |
| 40,000 โ 44,999 | 1,000 |
| 45,000 โ 49,999 | 1,100 |
| 50,000 โ 59,999 | 1,200 |
| 60,000 โ 69,999 | 1,300 |
| 70,000 โ 79,999 | 1,400 |
| 80,000 โ 89,999 | 1,500 |
| 90,000 โ 99,999 | 1,600 |
| 100,000+ | 1,700 |
PAYE Filing Deadlines
- Monthly PAYE: Due by the 9th of the following month
- Annual Returns (P9A): Employee must file individual tax return by June 30 each year
- NSSF: Remitted by 15th of following month
- NHIF/SHA: Remitted by 9th of following month
- Housing Levy: Remitted by 9th of following month
Tax Relief Summary
- Personal Relief: KES 28,800/year (KES 2,400/month) โ applies to all employees
- Insurance Relief: 15% of premiums, max KES 5,000/month benefit
- Pension Deduction: Up to 30% of gross or KES 20,000/month โ reduces taxable income
- Disability Relief: KES 150,000/year for persons with disability
Frequently Asked Questions
How is Kenya PAYE calculated in 2026?
Kenya PAYE (Pay As You Earn) uses progressive annual brackets: 10% on income up to KES 288,000, 25% on KES 288,001โ388,000, 30% on KES 388,001โ6,000,000, 32.5% on KES 6,000,001โ9,600,000, and 35% above KES 9,600,000. Personal Relief of KES 28,800 per year (KES 2,400/month) is deducted from the calculated tax. The tax is computed on annual income, then divided by 12 for monthly PAYE.
What is the NSSF contribution in Kenya 2026?
Under the NSSF Act 2013 (fully implemented), NSSF contributions are 6% of gross salary for both employee and employer, with a maximum of KES 2,160/month for the employee (capped at the upper earnings limit of KES 36,000/month for Tier II). The lower earnings limit (Tier I) is KES 7,000/month at 6% = KES 420/month. Total NSSF: Tier I (KES 420) + Tier II (KES 1,740 max) = KES 2,160/month maximum.
How does the Affordable Housing Levy (AHL) work in Kenya?
The Affordable Housing Levy is 1.5% of gross monthly salary paid by the employee, with an equal 1.5% contribution from the employer. Unlike NHIF or NSSF, the AHL has no cap โ it applies to the full gross salary. The levy was introduced in 2023 and funds Kenya's affordable housing program. The employer AHL is an additional cost on top of the employee's gross salary.
What insurance relief is available in Kenya?
Insurance relief is 15% of insurance premiums paid for life, education, or medical insurance policies. The relief is capped at KES 60,000 per year (KES 5,000/month). Only premiums for policies covering the taxpayer, their spouse, or children qualify. The relief reduces your computed PAYE tax directly. Submit the insurance certificate to your employer for inclusion in payroll.
How are pension contributions treated for Kenya PAYE?
Employee pension contributions to a registered pension or provident fund are deductible from gross income before PAYE is computed. The deduction is limited to 30% of gross monthly salary, with a maximum of KES 20,000 per month (KES 240,000 per year). Employer contributions are not taxable as a benefit to the employee. This pension deduction is one of the most effective PAYE reduction strategies in Kenya.