KENYA
Capital:
Nairobi
Currency:
Kenyan Shilling (KES)
Time Zone:
UTC+3
Coat of Arms:
Harambee i.e. Pulling all together

PAYE Calculator Kenya | Tax Calculator 2025

Updated: 28-February-2025
SEE ALSO:  Nigeria PAYE Calculator  |  Ghana PAYE Calculator  | South Africa PAYE Calculator  | United States Tax Calculator  |  Loan Calculator   |  Income Tax Calculator  
VIDEO:    How to use tax calculator
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Datamass Kenya Limited
Payslip for MARCH 2025
Felix ADEJIMI
PAY ITEMS KES KES
Total Pay 50,000.00
Less:
Housing Levy (AHL) 750.00
SHIF 1,375.00
NSSF (Tiers 1 & 2) 3,000.00
PAYE Tax 5,845.83
Total Deductions                   ( 10,970.83 )
Net Pay 39,029.17
                 
Thirty-Nine Thousand and Twenty-Nine Kenyan Shilling and Seventeen Cent Only [= KES 39,029.17 ]
Chargeable Income (KES): 44,875.00
Employer Housing Levy (KES): 750.00
Employer NSSF (KES): 3,000.00
Effective Tax Rate (%): 11.6917 %
Average Tax Rate (%): 13.0269 %
Marginal Tax Rate (%): 30.00 %

Kenya-flag Kenya PAYE Calculator 2025

This Kenya PAYE calculator helps to calculate the amount to withhold as taxes from salaries of employees in Kenya. It also calculates amount to deduct as SHIF, NSSF and AHL from staff salaries.

In Kenya, it is required that employers deduct certain amount of money from employees' salaries and remit the sum deducted to Kenya Revenue Authority (KRA). The tax amount deducted depends on the earnings of the employee. The higher the earnings, the higher the tax deducted. Hence it is termed PAYE - Paye As You Earned.

Before or on the 9th of the following month, employers are to fill and remit PAYE tax deducted from salaries.
Late filing attracts a penalty which is the higher of 25% of the tax due or 10,000 KES.
Late remittance attracts a penalty of 5% of tax due and 1% interest per month.
Failure to deduct PAYE tax attracts a penalty of the higher of 25% of the tax involved or 10,000 KES.

2025 KENYA PAYE TAX RATES
S/N ANNUAL BAND (KES) MONTHLY BAND (KES) TAX RATE (%) MONTHLY TAX (KES) MONTHLY CUMULATIVE INCOME
1 First 288,000 KES First 24,000 KES 10% 2,400.00 24,000.00
2 Next 100,000 KES Next 8,333.33 KES 25% 2,083.33 32,333.33
3 Next 5,612,000 KES Next 467,666.67 KES 30% 140,300.00 500,000.00
4 Next 3,600,000 KES Next 300,000 KES 32.5% 97,500.00 800,000.00
5 Above 9,600,000 KES Above 800,000 KES 35%
Personal tax relief is 2,400 KES per month
Contributions to Housing Levy and SHIF are deductible from income taxable; Effective from 27-December-2024. See KRA Announcement
Contributions to pension are deductible from income taxable but capped at 360,000 KES annual. i.e. 30,000 KES for a month.
NEW Effective February 2025, the new lower earning limit and upper earning limit for NSSF are 8,000 KES and 72,000 KES respectively. They were 7,000 KES and 36,000 KES respectively in 2024.
See KPMG Reference : NSSF New Rates for 2025
No more tax reliefs on housing levy, SHIF and post-retirement medical fund.
Contributions to NSSF (Pension), Housing Level (AHL) and SHIF are mandatory.
Minimum taxable income is 24,001 KES per month.
Employer to match up NSSF (Pension) and Housing Levy contributed by employee.
Effective from October 1, 2024 NHIF is replaced by SHIF. SHIF is 2.75% of gross salary. No maximum cap but 300 KES minimum
References:
Amendments to PAYE Computation Pursuant to the Tax Laws (Amendment) Act, 2024
Applicability of Insurance Relief to Contributions made to the Social Health Insurance Fund (SHIF)