PAYE (Pay As You Earn) is the income tax deducted from your salary or wages by your employer. It applies to all employees earning a monthly income above the minimum taxable threshold (currently KSh 24,000 per month).

Your taxable income is your Gross Salary plus any taxable benefits, minus allowable deductions. The main allowable deduction is your contribution to a registered pension fund (like NSSF), capped at KSh 20,000 per month.

Personal Relief is a tax credit of KSh 2,400 per month (KSh 28,800 per year) that every resident taxpayer is entitled to. It is deducted directly from the tax you owe, reducing your final tax liability.

The NSSF contribution is 6% of your pensionable pay. Tier I is 6% of your pay up to KSh 7,000. Tier II is 6% of your pay between KSh 7,001 and KSh 36,000. The total maximum contribution is KSh 2,160 per month. Our calculator handles this tiered calculation automatically.

No. As per the latest guidelines, the 1.5% Affordable Housing Levy is NOT a tax-deductible expense. It is calculated on your gross pay but does not reduce your taxable income for PAYE purposes.

You get a tax relief of 15% of the premiums you pay for life, education, or health insurance policies. The total relief is capped at KSh 5,000 per month. Your SHIF contribution also qualifies for this relief.

This rule, from the Employment Act, states that an employer cannot deduct more than two-thirds (2/3) of an employee's total wages for any pay period. This ensures you always take home at least one-third of your salary after all deductions (statutory and voluntary).

Yes. Bonuses, commissions, overtime pay, and any other cash benefits are added to your gross salary for the month they are paid and are taxed as part of your total income for that month.

SHIF (Social Health Insurance Fund) is the new body that has replaced the NHIF (National Hospital Insurance Fund). It involves a new contribution structure, calculated as 2.75% of the gross monthly salary, which our calculator uses for 2025.

Individuals with a registered disability are exempt from tax on the first KSh 150,000 of their monthly income. This significantly reduces their taxable income and overall PAYE liability.

The value of a company car benefit is determined by KRA and added to your gross salary as a taxable benefit. The value is typically the higher of a rate prescribed by the Commissioner (based on engine size and car value) or 2% per month of the car's initial cost.

If you have a mortgage for an owner-occupied property, the interest you pay is an allowable deduction for tax purposes. You can claim relief on interest up to a maximum of KSh 25,000 per month (KSh 300,000 per year).

Your tax bracket (e.g., 30%) only applies to the portion of your income within that specific bracket. Your effective tax rate is the actual percentage of your total gross income that you pay in tax (Net PAYE / Gross Salary). Due to the progressive nature of the tax bands and reliefs, this rate is almost always lower than your highest tax bracket.

This calculator is designed for monthly salary estimations. While you can multiply the results by 12 for an annual estimate, your actual annual return may involve other factors like income from other sources or withholding tax credits. It's a great tool for planning but always use the official KRA iTax portal for filing.

It is the legal responsibility of the employer to deduct and remit PAYE to KRA on time. Failure to do so results in heavy penalties for the employer. You can verify your PAYE remittance status on your iTax account.