Gross to Net Salary Calculator — Kenya (2026)
Convert your gross salary to net take-home pay. We apply PAYE, NSSF, SHIF, and Housing Levy with 2026 Kenya rates.
2026 Rates
Last verified: Today
Assumptions & Rates
Deduction rates and rules used for the calculation (2026).
Statutory deductions
Calculation method
How This Gross-to-Net Calculator Works
Understanding the step-by-step process of converting gross salary to net take-home pay in Kenya
Step 1: Calculate Taxable Income
We start with your gross salary and add any taxable allowances (house, medical, etc.). This forms your taxable income. Non-taxable allowances are excluded from PAYE but may still affect SHIF and Housing Levy calculations depending on your employer's policy.
Step 2: Compute Statutory Deductions
We calculate NSSF (6% with Tier I cap at KES 9,000 and Tier II cap at KES 108,000), SHIF (2.75% with KES 300 minimum), and Housing Levy (1.5% with no cap). These deductions are tax-deductible, meaning they reduce your taxable income before PAYE calculation.
Step 3: Apply PAYE Tax Bands
After deducting NSSF, SHIF, and Housing Levy from your taxable income, we apply Kenya's progressive PAYE tax bands (10%, 25%, 30%, 32.5%, 35%). Personal relief of KES 2,400/month is automatically applied to reduce your final tax liability, never going below zero.
Step 4: Calculate Net Take-Home Pay
Your net pay is your gross salary minus all deductions: PAYE, NSSF, SHIF, Housing Levy, and any optional deductions like pension contributions. The calculator shows your effective tax rate (total deductions as a percentage of gross) to help you understand your overall tax burden.
Understanding Your Gross-to-Net Results
What each line in your salary breakdown means and how to interpret your take-home pay
Net Take-Home Pay
This is the actual amount deposited into your bank account after all statutory and optional deductions. It's your gross salary minus PAYE, NSSF, SHIF, Housing Levy, and any other deductions. This is what you can actually spend or save each month.
Effective Tax Rate
The percentage of your gross salary that goes to all deductions combined. This is typically lower than your marginal PAYE rate because it includes all deductions (not just PAYE) and accounts for personal relief. It shows your true overall tax burden.
PAYE Breakdown
Shows how much income tax you pay using Kenya's progressive tax bands. The calculator applies each band rate to the corresponding portion of your income, then subtracts personal relief (KES 2,400/month) to give your final PAYE amount.
Statutory Deductions Summary
Lists all mandatory deductions: NSSF (6%), SHIF (2.75%), Housing Levy (1.5%), and PAYE. These are tax-deductible before PAYE calculation, which reduces your overall tax liability. The order matters: NSSF, SHIF, and Housing Levy are deducted first, then PAYE is calculated on the reduced amount.
Total Deductions
The sum of all deductions from your gross salary. This includes statutory deductions (PAYE, NSSF, SHIF, Housing Levy) plus any optional deductions like pension contributions or insurance premiums. Subtract this from your gross to get your net pay.
Monthly vs Annual View
The calculator can show results monthly or annually. Monthly is useful for budgeting and comparing with your payslip. Annual view helps with tax planning and understanding your yearly tax burden. Both use monthly tax bands for accuracy.
When to Use This Gross-to-Net Calculator
Common scenarios where this calculator helps you understand your take-home pay
1 Evaluate Job Offers
When comparing job offers, convert each gross salary to net take-home pay to see what you'll actually receive. A higher gross doesn't always mean more net pay if it pushes you into higher tax bands or has different allowance structures.
2 Salary Negotiations
Understand the net impact of a salary increase. A KES 20,000 gross increase might only add KES 12,000 to your net pay after all deductions. Use this to negotiate effectively and set realistic expectations.
3 Budget Planning
Know exactly how much money you'll have available each month for expenses, savings, and investments. Your net pay is what matters for budgeting, not your gross salary. Factor in all deductions to create an accurate budget.
4 Verify Payslip Accuracy
Check if your employer is calculating deductions correctly. Enter your gross salary and allowances, then compare the calculated net pay with what appears on your payslip. Discrepancies may indicate payroll errors.
5 Tax Planning
See how optional deductions like pension contributions affect your net pay and tax liability. Pension contributions are tax-deductible up to KES 20,000/month, which can significantly reduce your PAYE while building retirement savings.
6 Understand Allowance Impact
See how taxable vs non-taxable allowances affect your take-home pay. Taxable allowances increase your PAYE burden, while non-taxable allowances don't affect PAYE but may still impact SHIF and Housing Levy calculations.
Official Data Sources
Our Gross-to-Net calculations are based on official government regulations and Kenya tax legislation
- Kenya Revenue Authority (KRA) — Official PAYE tax rates, bands, and personal relief amounts. KRA publishes the Income Tax Act and annual tax tables that define the progressive tax structure (10%, 25%, 30%, 32.5%, 35%).
- National Social Security Fund (NSSF) — NSSF contribution rates and tier limits. Current 2026 rates: 6% with Tier I cap at KES 9,000 and Tier II cap at KES 108,000 pensionable pay.
- Social Health Authority (SHA) — SHIF contribution rates and regulations. Current rate: 2.75% of gross pay with KES 300 minimum per month, tax-deductible since December 27, 2024.
- Finance Act, 2023 & 2024 — Legal framework for Housing Levy (1.5% employee contribution) and other statutory deductions. Defines tax deductibility rules and calculation order for all statutory contributions.
- 2026 Tax Regulations — Current rates: PAYE progressive bands, Personal relief KES 2,400/month, NSSF 6%, SHIF 2.75%, Housing Levy 1.5%. All statutory deductions are tax-deductible before PAYE calculation.
- Schema Dates: . We verify our calculations against official KRA, NSSF, and SHA publications. All rates and formulas are current for 2026 and match government regulations.
Real-World Gross-to-Net Examples (2026)
See how gross salary converts to net take-home pay across different income levels with actual 2026 rates
Gross → Net — FAQs
Common questions about converting gross to net salary.
We deduct PAYE, NSSF, SHIF, and Housing Levy from your gross salary to arrive at your net take-home pay.
Taxable allowances add to the PAYE base and increase tax. Non-taxable allowances do not increase PAYE but still affect SHIF and Housing Levy calculations.
Yes. We apply personal relief (KES 2,400/month) after computing PAYE, which reduces your final tax liability but never goes below zero.
PAYE, NSSF, SHIF, and Housing Levy are all mandatory statutory deductions for employees in Kenya.
We use monthly bands for calculation. You can enter either monthly or annual figures; results will convert as needed for display.
No. Both Housing Levy and SHIF are mandatory for all employees in Kenya. The calculator allows you to toggle them off for comparison purposes only.
The effective tax rate is the total percentage of your gross salary that goes to all deductions (PAYE, NSSF, SHIF, Housing Levy). It shows your overall tax burden and is typically lower than the marginal PAYE rate.
Yes. You can add other deductions such as loan repayments, salary advances, or cooperative contributions in the advanced options. These are subtracted from your net pay after statutory deductions.
NSSF contributions are deducted from your gross salary before calculating PAYE. This reduces your taxable income, which means you pay less PAYE tax. NSSF is tax-deductible, while SHIF and Housing Levy are not (as of 2025).
Yes. Select "Annual" as the period and enter your annual gross salary. The calculator will convert it to monthly amounts for computation using monthly tax bands, then multiply the results by 12 to show annual figures.
Gross salary is your total earnings before any deductions. Net salary (take-home pay) is what remains after deducting PAYE, NSSF, SHIF, Housing Levy, and other deductions. The difference between gross and net is your total deductions, typically 25-35% of gross depending on your income level.
The calculator uses official 2026 Kenya tax rates from KRA, NSSF, SHA, and government regulations. It applies the exact progressive PAYE bands, statutory deduction rates, and personal relief amounts. Results match official payroll calculations when the same inputs are used.
Kenya has multiple statutory deductions that significantly reduce gross salary: PAYE (10-35% progressive), NSSF (6%), SHIF (2.75%), and Housing Levy (1.5%). Combined, these typically reduce gross by 25-35%. Higher earners face higher PAYE rates, reducing net pay percentage further.
Yes. Contribute to a registered pension scheme (tax-deductible up to KES 20,000/month or 30% of salary), pay insurance premiums (relief up to KES 5,000/month), or claim mortgage interest relief (up to KES 25,000/month). These reduce your taxable income and PAYE liability.
Bonuses are added to your gross salary for the month received and taxed using the same progressive PAYE bands. A large bonus can push you into higher tax brackets, resulting in higher PAYE rates on the bonus amount. NSSF, SHIF, and Housing Levy also apply to bonuses.
Each employer calculates deductions independently based on what they pay you. However, your combined income may push you into higher PAYE brackets. NSSF caps apply per employer, but SHIF and Housing Levy have no caps, so you pay on all income from all sources.
Overtime is added to your gross salary and taxed normally. If overtime pushes your total monthly income into higher PAYE brackets, you'll pay higher tax rates on the additional income. All statutory deductions (NSSF, SHIF, Housing Levy) also apply to overtime pay.
Differences may occur due to: (1) employer-specific deductions not in the calculator, (2) different treatment of allowances, (3) payroll errors, (4) pension contributions or insurance premiums, or (5) loan repayments. Compare line-by-line to identify discrepancies.
Yes, as of December 27, 2024, both SHIF and Housing Levy are tax-deductible before PAYE calculation. This means they reduce your taxable income, lowering your PAYE liability. The calculator automatically applies this tax benefit when computing your net pay.
Yes. Use the "Copy share link" button to generate a URL that saves your inputs. You can bookmark this link or share it with others. The link will restore all your inputs and automatically calculate results when opened.