Kenya PAYE & Net Salary Calculator 2025
Calculate your take-home salary with updated rates - PAYE, NSSF (Feb 2025), SHIF, and Housing Levy
Salary & Deductions
Tax-Deductible Contributions (Optional)
These reduce your taxable income and lower your PAYE tax
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How to Calculate Your Net Salary
Enter Gross Salary
Input your monthly gross salary before any deductions
Add Tax Deductions
Optional: Enter pension, mortgage, insurance, medical contributions
View Breakdown
See PAYE, NSSF, SHIF, Housing Levy calculations
Get Net Salary
See your exact take-home pay after all deductions
💡 Pro Tip: Switch between Employee and Employer views to see both your take-home salary and the total cost to your employer including statutory contributions.
Frequently Asked Questions About Salary & Tax in Kenya
What is the difference between gross salary and net salary?▼
Gross Salary is your total monthly salary before any deductions. It's the figure stated in your employment contract.
Net Salary (Take-Home Pay) is what you actually receive in your bank account after all statutory and voluntary deductions.
Formula:
Net Salary = Gross Salary - (NSSF + SHIF + Housing Levy + PAYE Tax)
Example for KES 100,000 gross salary:
| Gross Salary | KES 100,000 |
| Less: NSSF | - KES 2,160 |
| Less: SHIF (2.75%) | - KES 2,750 |
| Less: Housing Levy (1.5%) | - KES 1,500 |
| Less: PAYE Tax | - KES 17,982 |
| Net Take-Home Salary | KES 75,608 |
Use our calculator above for accurate calculations based on your specific salary and deductions.
How do I reduce my PAYE tax legally in Kenya?▼
There are several legal ways to reduce your PAYE tax in Kenya through tax-deductible contributions:
1. Pension/Provident Fund Contributions
- Limit: Up to KES 30,000 per month (KES 360,000 annually)
- How it works: Deducted from gross salary before calculating taxable income
- Example: KES 10,000 pension = KES 3,000 - 3,500 tax savings
2. Mortgage Interest Relief
- Limit: Up to KES 30,000 per month (KES 360,000 annually)
- Requirement: Owner-occupied residential house in Kenya
- Note: Only interest portion qualifies, not principal repayment
3. Post-Retirement Medical Fund
- Limit: Up to KES 15,000 per month (KES 180,000 annually)
- Requirement: Registered medical insurance scheme
4. Insurance Premium Relief
- Relief Rate: 15% of premium paid
- Limit: Premium up to KES 5,000/month qualifies (relief = KES 750)
- Types: Life, education, health insurance
💡 Maximum Tax Savings Example: If you contribute KES 30,000 pension + KES 30,000 mortgage + KES 15,000 medical = KES 75,000 monthly deductions, you could save approximately KES 20,000 - 26,000 in monthly PAYE tax (depending on your gross salary).
What are the current PAYE tax rates and bands in Kenya for 2025?▼
Kenya uses a progressive tax system with 5 tax bands. Higher income is taxed at higher rates:
| Monthly Taxable Income | Annual Equivalent | Tax Rate |
|---|---|---|
| KES 0 - 24,000 | KES 0 - 288,000 | 10% |
| KES 24,001 - 32,333 | KES 288,001 - 388,000 | 25% |
| KES 32,334 - 71,306 | KES 388,001 - 855,667 | 30% |
| KES 71,307 - 96,307 | KES 855,668 - 1,155,667 | 32.5% |
| Above KES 96,307 | Above KES 1,155,667 | 35% |
Personal Relief: Everyone gets KES 2,400 monthly (KES 28,800 annually) deducted from calculated tax
How Progressive Tax Works:
Example: Taxable income = KES 50,000/month
- First KES 24,000 @ 10% = KES 2,400
- Next KES 8,333 @ 25% = KES 2,083
- Remaining KES 17,667 @ 30% = KES 5,300
- Total tax = KES 9,783
- Less: Personal relief = KES 2,400
- Net PAYE = KES 7,383
Source: KRA - PAYE Tax Rates 2025
What is SHIF and how much do I pay?▼
SHIF (Social Health Insurance Fund) replaced NHIF on October 1, 2024 as Kenya's new universal healthcare system.
SHIF Contribution Rate:
- Rate: 2.75% of gross monthly salary
- Minimum: KES 300 per month (for those earning below KES 10,909)
- No maximum cap - calculated on full gross salary
- Effective date: October 1, 2024
Examples:
| Gross Salary | SHIF (2.75%) | Old NHIF |
|---|---|---|
| KES 20,000 | KES 550 | KES 500 |
| KES 50,000 | KES 1,375 | KES 1,200 |
| KES 100,000 | KES 2,750 | KES 1,700 |
| KES 200,000 | KES 5,500 | KES 1,700 |
Key Changes from NHIF:
- NHIF had fixed bands (max KES 1,700), SHIF is percentage-based
- SHIF covers more services and benefits
- SHIF contributions are allowable deductions for income tax (effective January 2025)
- Managed by Social Health Authority (SHA) instead of NHIF
Learn more: SHIF Calculator | Social Health Authority
What are the new NSSF rates for 2025?▼
NSSF (National Social Security Fund) contribution rates increased from February 1, 2025 with a two-tier system:
| Tier | Salary Range | Employee Rate | Employer Rate |
|---|---|---|---|
| Tier 1 | First KES 8,000 | 6% (KES 480) | 6% (KES 480) |
| Tier 2 | KES 8,001 - 72,000 | 6% of balance | 6% of balance |
Examples:
Salary: KES 30,000
- Tier 1: KES 8,000 × 6% = KES 480
- Tier 2: (KES 30,000 - 8,000) × 6% = KES 1,320
- Total Employee: KES 1,800
- Total Employer: KES 1,800
- Combined: KES 3,600
Salary: KES 100,000 (capped at KES 72,000)
- Tier 1: KES 8,000 × 6% = KES 480
- Tier 2: (KES 72,000 - 8,000) × 6% = KES 3,840
- Total Employee: KES 4,320 (Maximum)
- Total Employer: KES 4,320
Key Changes from Old NSSF:
- Old rate: KES 200 employee + KES 200 employer = KES 400 total
- New maximum: KES 4,320 employee + KES 4,320 employer = KES 8,640 total
- Benefit: Higher contributions = higher pension/benefits at retirement
- Tax benefit: Employee NSSF is deducted before calculating taxable income
Learn more: NSSF Calculator | NSSF Official Website
What is the Housing Levy and who pays it?▼
The Affordable Housing Levy is a mandatory contribution to fund affordable housing projects in Kenya.
Levy Details:
- Employee contribution: 1.5% of gross salary
- Employer contribution: 1.5% of gross salary (matches employee)
- Maximum contribution: KES 5,000 per month (for salaries above KES 333,333)
- Effective date: July 1, 2023
- Remittance: Via KRA iTax by 9th of following month
Examples:
| Gross Salary | Employee (1.5%) | Employer (1.5%) | Total |
|---|---|---|---|
| KES 30,000 | KES 450 | KES 450 | KES 900 |
| KES 100,000 | KES 1,500 | KES 1,500 | KES 3,000 |
| KES 500,000 | KES 5,000 (capped) | KES 5,000 (capped) | KES 10,000 |
Important Notes:
- All employees (formal and informal sector) must contribute
- Self-employed persons also required to contribute 1.5%
- Contributions accumulate as credits for future housing purchase/rent
- Not tax-deductible - calculated on gross salary after NSSF only
- Managed by the Affordable Housing Fund
Future Benefit: Contributors can access accumulated funds to buy or rent affordable housing units developed under the program.
When is the deadline for remitting PAYE and statutory deductions?▼
Remittance Deadlines: All statutory deductions must be paid to KRA by the 9th of the following month.
| Deduction | Deadline | Remitted To |
|---|---|---|
| PAYE Tax | 9th of following month | Kenya Revenue Authority (KRA) |
| NSSF | 9th of following month | National Social Security Fund |
| SHIF | 9th of following month | Social Health Authority (SHA) |
| Housing Levy | 9th of following month | KRA (Affordable Housing Fund) |
Example:
- January 2025 salary paid on Jan 31st
- PAYE, NSSF, SHIF, Housing Levy must be remitted by February 9, 2025
- Late remittance attracts penalties and interest
How to Remit:
- Log in to iTax portal
- Navigate to Returns → File Returns → PAYE
- Enter employee details and deductions
- System generates payment slip
- Pay via bank, M-Pesa, or online banking
- System auto-allocates to NSSF, SHIF, Housing separately
⚠️ Late Payment Penalties:
- PAYE: 5% of tax due + 1% interest per month
- NSSF: Penalties and interest as per NSSF Act
- SHIF: 2% penalty on late payment
- Housing Levy: Penalties as per Finance Act
Remit via: iTax Portal | Support: 0711 099 999
Where can I get official salary tax information and support?▼
Official Government Resources:
- 🌐Kenya Revenue Authority (KRA): kra.go.ke
PAYE tax rates, reliefs, filing procedures
- 💻iTax Portal: itax.kra.go.ke
File PAYE returns, make payments, download P9 forms
- 🏦NSSF (National Social Security Fund): nssf.or.ke
Pension contribution rates, member portal, benefits
- 🏥Social Health Authority (SHA): sha.go.ke
SHIF contributions, registration via *147#
- 📱KRA Call Centre: 0711 099 999 / 0711 099 100
Monday - Friday: 8:00 AM - 5:00 PM
- ✉️Email Support: callcentre@kra.go.ke
PAYE and tax queries
💡 Tip: Visit your nearest KRA Taxpayer Service Centre for in-person assistance with PAYE, P9 forms, and tax compliance.
Calculator updated with 2025 rates: NSSF (Feb 2025), SHIF (Oct 2024), PAYE tax bands (July 2023)
For official information, visit www.kra.go.ke