Annual Tax Calculator — Kenya (2026)
Enter your monthly salary and we calculate your annual PAYE tax liability. Perfect for year-end planning, iTax filing, and tax reconciliation.
2026 Rates
Last verified: Today
Assumptions & Rates
Annual tax calculation method (2026).
Annual reliefs
When to use
How This Annual Tax Calculator Works
Understanding the step-by-step process of calculating annual PAYE tax in Kenya
Step 1: Enter Monthly Income
Input your gross monthly salary in Kenya Shillings. The calculator automatically multiplies by 12 to get your annual income. You can also enter annual income directly if you prefer. Include all taxable income components like basic salary and taxable allowances.
Step 2: Add Deductions and Reliefs
Enter pension contributions (up to KES 240,000 or 30% of income), insurance premiums (for 15% relief, max KES 60,000), and mortgage interest. These reduce your taxable income or provide tax relief. Personal relief of KES 28,800/year is automatically applied.
Step 3: Calculate Annual PAYE
Click "Calculate Annual Tax" and the system applies Kenya's 2026 progressive tax bands (10%, 25%, 30%, 32.5%, 35%) to your taxable income. It calculates PAYE before relief, then subtracts all applicable reliefs to show your final annual tax liability.
Step 4: Review and File iTax
See your total annual PAYE, monthly breakdown, and effective tax rate. Use these figures for your KRA iTax annual return filing (due June 30 of the following year). Compare with your monthly deductions to identify any discrepancies or refund opportunities.
Understanding Your Annual Tax Results
What each component means and how to use the results for tax planning
Annual Taxable Income
Your gross annual income minus pension contributions. This is the amount on which PAYE is calculated. For example, if you earn KES 1,800,000 annually and contribute KES 100,000 to pension, your taxable income is KES 1,700,000.
PAYE Before Relief
Total tax calculated using Kenya's progressive bands before any reliefs are applied. This shows the raw tax liability on your taxable income. The bands are: 10% (0-288,000), 25% (288,001-387,996), 30% (387,997-6,000,000), 32.5% (6,000,001-9,600,000), 35% (above 9,600,000).
Personal Relief
Automatic KES 28,800 annual relief (KES 2,400/month) that reduces your PAYE. Every Kenyan taxpayer qualifies for this relief. It's subtracted from PAYE before relief to calculate your final tax liability.
Insurance Relief
15% of insurance premiums paid, capped at KES 60,000 annually (KES 5,000/month). Covers life, health, and education insurance. Enter your annual premiums to see how much relief you qualify for. This directly reduces your final PAYE.
Final Annual PAYE
Your total tax liability for the year after all reliefs. This is what you should have paid in total through monthly deductions. Compare this with the sum of your monthly PAYE deductions to check for over/under-payment.
Effective Tax Rate
Your final PAYE as a percentage of gross income. This shows your true tax burden. For example, if you earn KES 1,800,000 and pay KES 423,600 in PAYE, your effective rate is 23.5%. Lower income earners have lower effective rates due to progressive taxation.
When to Use This Annual Tax Calculator
Common situations where calculating annual PAYE helps with tax planning and compliance
1 iTax Annual Return Filing
When preparing your KRA iTax annual return (due June 30), use this calculator to compute your total annual PAYE liability. Compare with P9 form from employer to verify accuracy. Identify discrepancies that may require refund claims or additional payments.
2 Year-End Tax Planning
Before year-end, calculate your projected annual tax to identify opportunities for tax savings. Increase pension contributions or insurance premiums before December 31 to reduce taxable income and lower your final PAYE liability.
3 Tax Reconciliation
Compare your calculated annual PAYE with the sum of monthly deductions on your payslips. Significant differences may indicate errors in monthly withholding. Use this to request corrections from your employer or claim refunds from KRA.
4 Multiple Income Sources
If you have multiple jobs or income sources, calculate total annual PAYE across all sources. This helps you understand your combined tax liability and ensures you're not under-paying tax, which could result in penalties during iTax filing.
5 Salary Change Impact
When you receive a raise or change jobs mid-year, calculate the annual tax impact. This helps you understand how the salary change affects your total yearly tax liability and take-home pay, not just the monthly difference.
6 Relief Optimization
Calculate annual PAYE with different pension and insurance contribution levels to see which combination maximizes your tax savings. This helps you optimize contributions to stay within relief caps while minimizing tax liability.
Official Data Sources
Our annual tax calculations use official 2026 Kenya PAYE rates and relief provisions
- Kenya Revenue Authority (KRA) — Provides official PAYE tax bands and rates. The 2026 annual progressive bands are: 10% (0-288,000), 25% (288,001-387,996), 30% (387,997-6,000,000), 32.5% (6,000,001-9,600,000), and 35% (above 9,600,000). Personal relief is KES 28,800/year.
- Income Tax Act (Cap. 470) — Governs PAYE calculation, relief provisions, and deductions in Kenya. Establishes personal relief, insurance relief (15% max KES 60,000), pension deductibility (up to KES 240,000 or 30% of income), and mortgage interest relief provisions.
- KRA iTax Portal — Official platform for filing annual tax returns in Kenya. Returns are due by June 30 of the following year. This calculator helps you prepare accurate figures for your iTax P9A form and reconcile with employer deductions.
- Tax Procedures Act, 2015 — Establishes filing deadlines, penalties for late filing, and procedures for claiming refunds. Individuals must file annual returns even if tax was fully withheld by employer to claim reliefs and verify accuracy.
- Finance Act (Annual) — Published each year after budget approval, typically in June/July. Contains any changes to PAYE rates, relief amounts, and deduction limits. The 2026 rates remain unchanged from 2025 progressive bands.
- Last Verified: . We verify our calculations against official KRA publications and Finance Act provisions. All rates and formulas are current for 2026 tax year.
Real-World Annual Tax Examples (2026)
See comprehensive annual PAYE calculations for typical Kenyan monthly salaries with 2026 rates
Entry Level Professional
Annual Income: KES 600,000
Taxable Income: KES 600,000
PAYE Before Relief: KES 117,400
Personal Relief: KES 28,800
Final Annual PAYE: KES 88,600
Monthly PAYE: ~KES 7,383
Effective Tax Rate
14.8%
Mid-Level Manager
Annual Income: KES 1,800,000
Taxable Income: KES 1,800,000
PAYE Before Relief: KES 477,400
Personal Relief: KES 28,800
Final Annual PAYE: KES 448,600
Monthly PAYE: ~KES 37,383
Effective Tax Rate
24.9%
Senior Executive
Annual Income: KES 3,600,000
Taxable Income: KES 3,600,000
PAYE Before Relief: KES 1,141,400
Personal Relief: KES 28,800
Final Annual PAYE: KES 1,112,600
Monthly PAYE: ~KES 92,717
Effective Tax Rate
30.9%
C-Suite / Director
Annual Income: KES 6,000,000
Taxable Income: KES 6,000,000
PAYE Before Relief: KES 1,861,400
Personal Relief: KES 28,800
Final Annual PAYE: KES 1,832,600
Monthly PAYE: ~KES 152,717
Effective Tax Rate
30.5%
Annual Tax — FAQs
Common questions about annual PAYE calculations.
We apply Kenya's progressive 2026 tax bands to your annual taxable income (after pension deductions), then subtract annual reliefs including personal relief (KES 28,800), insurance relief (15% of premiums, max KES 60,000), and mortgage interest relief.
2026 bands: Up to KES 288,000 (10%), KES 288,001-387,996 (25%), KES 387,997-6,000,000 (30%), KES 6,000,001-9,600,000 (32.5%), Above KES 9,600,000 (35%). These are applied progressively to taxable income.
Yes, if monthly deductions were consistent and correct. Use this calculator to reconcile against the total monthly PAYE withheld throughout the year. Significant differences may require iTax filing adjustments or refund claims.
File by June 30 of the following year via KRA iTax portal. For example, 2026 returns are due by June 30, 2027. This calculator helps you prepare accurate figures for your iTax return.
Pension contributions reduce your taxable income before PAYE is calculated. You can claim up to KES 240,000 annually or 30% of your gross income, whichever is lower. This results in significant tax savings.
Personal relief is KES 28,800 per year (KES 2,400/month) deducted from your PAYE tax after calculation. Every Kenyan taxpayer qualifies for this relief, which reduces your final tax liability but never below zero.
Yes! Insurance relief is 15% of your annual premiums (for life, education, or health insurance), capped at KES 60,000 per year. Enter your total annual premiums in Advanced Options to see the relief applied.
Calculate your correct annual PAYE here, then compare with your P9 form. If your employer over-withheld, you can claim a refund when filing your annual iTax return. Keep all payslips and P9 as proof.
Enter your monthly gross salary and any other monthly income. We'll automatically multiply by 12 to calculate your annual PAYE tax liability. All reliefs (pension, insurance, mortgage) should also be entered as monthly amounts.
Yes, mortgage interest on your primary residence qualifies for relief (typically 15% of interest paid, max KES 2,500/month or KES 30,000/year). Enter your annual mortgage interest in Advanced Options to include this relief.
Add up all income from both jobs for the year. If both employers withheld PAYE, sum those amounts and compare with your calculated annual PAYE. You may be due a refund if combined withholding exceeded your actual liability.
Very accurate. We use official KRA 2026 tax bands and relief provisions. However, always verify against your P9 form from your employer and consult KRA iTax portal for final filing. This calculator is for planning and estimation.
Yes, but self-employed individuals pay presumptive or turnover tax, not PAYE. However, you can use this to estimate tax on employment income if you have both business and employment income sources.
KRA imposes penalties for late filing: KES 2,000 for individuals or 5% of tax due (whichever is higher). Even if your employer withheld all tax, you must file to claim reliefs and maintain tax compliance. File by June 30.
Contribute maximum pension (KES 240,000 or 30% of income), pay insurance premiums (up to KES 400,000 for max KES 60,000 relief), and claim mortgage interest. Use this calculator to model different contribution levels and find optimal tax savings.
Your P9 reflects actual monthly withholding which may differ from calculated annual PAYE due to timing, bonuses, or employer errors. Use this calculator to verify correctness and identify discrepancies to discuss with your employer or claim refunds.
Yes, persons with disability get KES 1,800/month (KES 21,600/year) additional relief. Enable the disability exemption toggle in Advanced Options to include this in your calculation. You'll need NCPWD certificate for KRA filing.
Bonuses are taxed as regular income in the month received. Include total annual bonuses in your gross income to calculate accurate annual PAYE. Large bonuses may push you into higher tax brackets, increasing your effective rate.
Monthly PAYE is withheld each month by your employer. Annual PAYE is your total tax liability for the year. They should match (monthly × 12 = annual), but discrepancies occur due to bonuses, salary changes, or employer errors. Use this to reconcile.
New tax rates are announced in Kenya's annual budget, typically in June. The Finance Act is passed by Parliament in July/August. We update this calculator immediately when new rates are published. Subscribe to our newsletter for 2027 rate alerts.