Ever looked at your payslip and wondered where a big chunk of your salary disappeared to? That “missing” amount is likely your tax — specifically PAYE (Pay As You Earn). And if you’ve ever wanted to understand exactly how much you’re being taxed, a Kenyan PAYE calculator is your best friend.
This article breaks down how PAYE works in Kenya, why it’s deducted, and how to use a PAYE calculator to understand your net salary. Whether you’re a new employee or a seasoned professional, this guide will help you take control of your finances.
https://www.payecalculator.co.ke
What is PAYE?
PAYE (Pay As You Earn) is a tax system used in Kenya to deduct income tax from employed individuals. Your employer calculates this tax based on your salary and submits it to the Kenya Revenue Authority (KRA) on your behalf.
In other words: before your salary hits your bank account, the tax has already been taken out.
Who Needs to Pay PAYE?
If you earn a monthly gross salary above KES 24,000, you fall within the taxable bracket in Kenya and are subject to PAYE. The system is progressive, which means the more you earn, the higher the percentage of tax you’re charged.
PAYE Tax Bands in Kenya (2025)
The current PAYE tax rates as of 2025 are structured in the following bands:
| Income Bracket (Monthly) | Tax Rate |
|---|---|
| Up to KES 24,000 | 10% |
| 24,001 – 32,333 | 25% |
| Above 32,333 | 30% |
You also receive a personal relief of KES 2,400 every month to lower your total tax liability.
Other Deductions to Keep in Mind
In addition to PAYE, your payslip may include:
- NHIF (Health Insurance) – between KES 150 and KES 1,700 depending on your salary
- NSSF (Pension Savings) – standard or tiered rates apply
- Housing Levy – 1.5% of your gross salary
- Other Voluntary Contributions – like pension or insurance
What is a Kenyan PAYE Calculator?
A PAYE calculator is an online tool that automatically computes how much tax and deductions you owe based on your gross salary. In seconds, it gives you an estimate of:
- PAYE
- NHIF and NSSF
- Housing Levy
- Total deductions
- Net salary (your actual take-home pay)
It’s fast, accurate, and eliminates the guesswork.
How to Use the PAYE Calculator
Here’s how most PAYE calculators work:
- Enter your gross salary
- Input any extra deductions (e.g. pension, insurance) if applicable
- Click Calculate
- Get a breakdown of your:
- PAYE tax
- NHIF/NSSF
- Housing Levy
- Personal relief
- Net salary
Simple!
Sample Calculation – Gross Salary of KES 70,000
Let’s break it down:
- PAYE Tax:
- First 24,000 at 10% = 2,400
- Next 8,333 at 25% = 2,083
- Remaining 37,667 at 30% = 11,300
- Total PAYE: 15,783
- Minus Relief: 2,400
- Final PAYE: 13,383
- Other Deductions (approximate):
- NHIF: KES 1,700
- NSSF: KES 1,080
- Housing Levy (1.5%): KES 1,050
- Total Deductions: ~KES 17,213
- Net Salary: KES 52,787
These are estimates; exact numbers may vary depending on benefits and deductions.
Why Use a PAYE Calculator?
Here’s why it matters:
- ✅ Understand your payslip – Know where every shilling goes
- ✅ Budget better – Plan for savings, loans, and expenses
- ✅ Check for errors – Ensure your employer’s payroll is accurate
- ✅ Stay compliant – Be aware of your tax responsibilities
Best PAYE Calculators in Kenya (2025)
Here are some free and reliable tools:
You can use them on your phone, tablet, or desktop.
Final Thoughts
Knowing how your salary is taxed isn’t just helpful — it’s empowering. Whether you’re trying to budget more effectively, save for a goal, or just make sense of your payslip, the Kenyan PAYE calculator is a tool you should use regularly.
Your paycheck belongs to you — make sure you understand it.
