PAYE (Pay As You Earn) is the income tax the Kenya Revenue Authority (KRA) requires employers to deduct from employees’ pay each month. It uses a progressive band structure, and a fixed personal relief reduces the final tax. This calculator applies the current bands and the KES 2,400 relief so you can verify your payslip.
How it works
The KRA monthly bands are applied progressively — each rate only applies to the slice of income within its band:
- First KES 24,000 → 10%
- Next KES 8,333 (24,001–32,333) → 25%
- Next up to 500,000 (32,334–500,000) → 30%
- Next up to 800,000 (500,001–800,000) → 32.5%
- Above 800,000 → 35%
Add the tax from each band to get gross PAYE. Then subtract the personal relief of KES 2,400. If relief is larger than gross tax, PAYE payable is 0 (relief is not refundable). Your net pay is taxable income minus PAYE payable.
Example
Taxable pay of KES 50,000:
- 10% × 24,000 = KES 2,400
- 25% × 8,333 = KES 2,083.25
- 30% × (50,000 − 32,333) = 30% × 17,667 = KES 5,300.10
- Gross PAYE = KES 9,783.35
- Less relief KES 2,400 → PAYE payable = KES 7,383.35
Notes
This computes PAYE only. Statutory NHIF and NSSF deductions are calculated separately. Enter your taxable pay (after allowable deductions) for the most accurate PAYE figure, and confirm the current bands against the latest KRA schedule, as rates change with each Finance Act.