PAYE Calculator Kenya 2026 (KRA rates)
Enter a monthly or annual gross salary in KES and see the income tax, the take-home pay and how each band applies under the 2026 rates.
- Free
- No sign-up
- Nothing uploaded
- Updated for 2026
- Last reviewed October 2026
- Reviewed by the Owoode team
- KSh KES
- VAT 16%
- KRA PIN
- A4
- English
Rates: 2026. Bands in force since 1 July 2023; personal relief of KSh 2,400 a month (KSh 28,800 a year) is credited against tax. Since 27 December 2024 the employee's SHIF (2.75%) and Affordable Housing Levy (1.5%) come off pay before the bands apply. NSSF and other pension contributions (up to KSh 30,000 a month) are deductible too but are not modelled here, so tax shown is slightly high if you contribute.
Monthly take-home pay
Ksh 39,788.67
Ksh 6,171.33 tax deducted · 12.86% effective rate · 28.73% marginal rate · Ksh 477,464.00 a year
- Monthly take-home payKsh 39,788.6782.9%
- TaxKsh 6,171.3312.9%
- SHIF 2.75% + Housing Levy 1.5%Ksh 2,040.004.3%
- Gross annual income
- Ksh 576,000.00
- Less SHIF 2.75% + Housing Levy 1.5%
- (Ksh 24,480.00)
- Taxable income
- Ksh 551,520.00
- Tax before credits
- Ksh 102,856.00
- Less tax credit
- (Ksh 28,800.00)
- Annual income tax
- Ksh 74,056.00
- Monthly income tax
- Ksh 6,171.33
How the bands apply
| Band | Taxed | Rate | Tax |
|---|---|---|---|
| First Ksh 288,000.00 | Ksh 288,000.00 | 10% | Ksh 28,800.00 |
| Next Ksh 100,000.00 | Ksh 100,000.00 | 25% | Ksh 25,000.00 |
| Next Ksh 5,612,000.00 | Ksh 163,520.00 | 30% | Ksh 49,056.00 |
Source: KRA PAYE page; KRA public notice of 19 December 2024 on the Tax Laws (Amendment) Act, 2024.
How employee tax is withheld
PAYE is worked out monthly on the bands in Head B of the Third Schedule to the Income Tax Act, unchanged since 1 July 2023: 10% on the first KSh 24,000, 25% on the next KSh 8,333, 30% on the next KSh 467,667, 32.5% on the next KSh 300,000 and 35% above KSh 800,000. The Finance Act 2026 did not change them.
Before applying the bands, the employer deducts the employee's Affordable Housing Levy and SHIF contributions, registered pension or provident fund contributions up to KSh 30,000 a month, post-retirement medical fund contributions up to KSh 15,000 a month and mortgage interest up to KSh 30,000 a month. This has applied since 27 December 2024 under the Tax Laws (Amendment) Act 2024. Insurance relief is 15% of qualifying life, health or education premiums, capped at KSh 60,000 a year. Non-cash benefits and employer-provided meals up to KSh 5,000 a month each are not taxed.
Since the Finance Act 2025, employers must apply these deductions and reliefs themselves once the employee provides the supporting documents (KRA notice of 6 October 2025). File the monthly PAYE return on iTax and pay by the 9th; a late return costs 25% of the tax or KSh 10,000, whichever is higher, and late payment 5% plus 1% interest a month.