Net Pay Calculator — Kenya (2026)

Gross is total pay before deductions; net is your take-home pay after PAYE, NSSF, SHIF, and Housing Levy (plus any optional deductions).

Yes. KES 2,400 per month is applied automatically to reduce your PAYE for eligible employees.

Yes. You can toggle off NSSF, SHIF, or Housing Levy if an exemption applies (e.g., non-employed persons, special contracts, or foreign workers).

PAYE is based on graduated tax bands after deducting allowable contributions (NSSF Tier I/II and reliefs). The rates range from 10% to 35%.

SHIF (Social Health Insurance Fund) replaced NHIF in October 2024. As of 2026, contributions are income-based at 2.75% of gross salary (minimum KES 300 per month) and are mandatory for all employees and self-employed adults in Kenya. SHIF is tax-deductible, meaning it reduces your taxable income for PAYE calculation.

The Housing Levy is 1.5% of the gross monthly salary, matched by the employer. It funds Kenya's Affordable Housing Program.

Yes. NSSF contributions use a two-tier system. For 2026, Tier I applies to the first KES 9,000 of pensionable pay (6% = KES 540), and Tier II applies to amounts between KES 9,001 and KES 108,000 (6% of the difference). The maximum employee contribution is KES 6,480 per month. Both employee and employer contribute equally (6% each), totaling 12% of pensionable pay.

Personal Relief (KES 2,400), Insurance Relief (up to KES 5,000), Mortgage Relief, and Home Ownership Savings Plan (HOSP) reliefs can reduce your total PAYE payable.

They are treated as part of gross pay and taxed under PAYE in the same month they are earned.

Yes. Employers must remit PAYE, SHIF, NSSF, and Housing Levy to KRA, SHIF Authority, NSSF, and the Housing Fund respectively—usually by the 9th of the next month.

Yes, if their income meets PAYE thresholds. However, casual workers under short contracts may be exempt from some deductions (like NSSF or SHIF).

Yes. Employers match NSSF and Housing Levy contributions and remit both their portion and yours.

Each employer calculates and remits PAYE independently. You may need to consolidate incomes in your annual tax return with KRA to avoid underpayment.

Log in to your KRA iTax account and check your P9 or PAYE ledger for employer remittances.

Mostly yes—but banked pay can differ slightly due to personal deductions (e.g., SACCO, HELB, insurance, or company loans).

Yes — from 27 Dec 2024. We always subtract NSSF before PAYE. SHIF (2.75%, min KES 300) and Housing Levy (1.5%) reduce taxable pay from 27 Dec 2024 onwards; before then, they reduce your net pay but not PAYE taxable income.

Effective February 1, 2026, NSSF rates were updated. Tier I lower limit increased from KES 7,000 to KES 9,000, and Tier II upper limit increased from KES 36,000 to KES 108,000. This means employees earning above KES 108,000 will now contribute the maximum of KES 6,480 per month (up from KES 2,160 in 2025). This is part of a phased implementation of the NSSF Act 2013.

Net pay differences occur due to several factors: different gross salaries (which affect PAYE brackets), different allowance structures (taxable vs non-taxable), different pension contributions, different insurance premiums, and whether certain statutory deductions apply. Even with the same gross salary, if one person has more taxable allowances, they'll pay more PAYE and have lower net pay.

Yes, the Affordable Housing Levy is mandatory for all employees in Kenya as of March 2024. It is 1.5% of gross salary for employees, with an additional 1.5% employer contribution. There are currently no exemptions, and it applies to all salary levels. The levy funds Kenya's Affordable Housing Program.

Yes, there are several legal ways to reduce your tax burden: maximize your pension contributions (up to 30% of gross salary, with a cap), take advantage of insurance relief (up to KES 5,000 per month), structure your compensation to include non-taxable allowances where possible, contribute to a Home Ownership Savings Plan (HOSP) for relief, and ensure you're claiming all eligible reliefs. Always consult with a tax professional for personalized advice.

Kenya uses a progressive tax system with five brackets. You don't pay the same rate on your entire salary—you pay 10% on the first KES 24,000, 25% on the next KES 8,333 (24,001-32,333), 30% on amounts up to KES 500,000, 32.5% on amounts up to KES 800,000, and 35% on anything above KES 800,000. This means higher earners pay a higher effective rate, but everyone benefits from the lower rates on their first KES 24,000.

Bonuses are treated as part of your gross salary in the month they are paid. They are subject to PAYE, NSSF (if within the pensionable limit), SHIF, and Housing Levy. Because bonuses can push you into a higher tax bracket for that month, you may pay more tax on the bonus than you would on regular salary. However, when you file your annual tax return, your total annual income is considered, and you may receive a refund if you overpaid.

Overtime pay is added to your regular salary and taxed as part of your gross income. It's subject to PAYE, NSSF (if within limits), SHIF, and Housing Levy. Like bonuses, overtime can push you into a higher tax bracket for that month. There's no special tax rate for overtime—it's treated the same as regular salary for tax purposes.

Yes, but it depends on the type of allowance. Taxable allowances (like housing allowance, transport allowance) are added to your gross salary and increase your PAYE tax base. Non-taxable allowances (like medical allowance up to certain limits, or specific allowances approved by KRA) don't affect PAYE but are still included in your total income. All allowances affect SHIF and Housing Levy calculations since they're based on gross salary.

Pensionable pay is the portion of your salary used to calculate NSSF contributions. For 2026, it's capped at KES 108,000 per month. This means even if you earn KES 500,000, your NSSF is calculated on only the first KES 108,000. However, for private pension contributions (which are tax-deductible), you can contribute up to 30% of your total gross salary, subject to certain limits.

Use this calculator to calculate what your deductions should be, then compare with your payslip. You can also log into your KRA iTax account to check PAYE remittances, verify NSSF contributions through the NSSF portal, and check SHIF contributions through the Social Health Authority. If you find discrepancies, first discuss with your HR or payroll department, then contact the relevant authority (KRA, NSSF, or SHA) if needed.

Gross pay is your total salary before any deductions. Taxable pay (or taxable income) is the amount used to calculate PAYE. Taxable pay = Gross Salary + Taxable Allowances - NSSF - Deductible SHIF - Deductible Housing Levy - Deductible Pension Contributions. So taxable pay is always less than or equal to gross pay because certain deductions reduce your tax base.

Individual taxpayers in Kenya must file their annual tax returns by June 30th of each year for the previous year's income. For example, you must file your 2025 tax return by June 30, 2026. You can file online through the KRA iTax portal. If you have multiple employers or additional income sources, filing your annual return helps ensure you've paid the correct amount of tax for the year.

Insurance Relief reduces your PAYE tax by 15% of your qualifying insurance premiums, up to a maximum of KES 5,000 per month. Qualifying insurance includes life insurance, education policies, and health insurance (beyond SHIF). For example, if you pay KES 10,000 per month in qualifying insurance, you get relief of KES 1,500 (15% of 10,000), but capped at KES 5,000. This relief is automatically applied when calculating PAYE.

Disability Relief is available to persons with disabilities (PWDs) registered with the National Council for Persons with Disabilities. The relief is KES 150,000 per year (KES 12,500 per month), which significantly reduces PAYE for eligible individuals. To claim this relief, you must provide a valid PWD card and register with KRA. This is in addition to Personal Relief.