Looking for a Kenya tax calculator 2025 to work out your net salary after PAYE, NSSF, SHIF, and Housing Levy? This guide breaks down everything you need to know about Kenya PAYE rates, salary deductions, and take-home pay.
Whether you’re searching for a net salary calculator Kenya, income tax calculator Kenya, or simply want to know “how much tax is deducted from my salary in Kenya 2025,” this article gives you the formulas, examples, and tables you need.
Kenya PAYE Tax Bands 2025
The Kenya Revenue Authority (KRA) applies a graduated PAYE tax system on employment income. Below are the official Kenya income tax bands for 2025:
| Tax Band (KES) | Tax Rate |
|---|---|
| 0 – 24,000 | 10% |
| 24,001 – 32,333 | 25% |
| 32,334 – 500,000 | 30% |
| 500,001 – 800,000 | 32.5% |
| Above 800,000 | 35% |
👉 Personal relief: KES 2,400 per month applies after tax is calculated.
Example:
If your gross salary is KES 60,000:
- First 24,000 → taxed at 10% = 2,400
- Next 8,333 → taxed at 25% = 2,083
- Remaining 27,667 → taxed at 30% = 8,300
Total PAYE = 12,783
Subtract Personal Relief of KES 2,400 → Final PAYE = 10,383
Other Mandatory Deductions in Kenya (2025)
Apart from PAYE, every Kenyan employee contributes to:
1. NSSF (New Rates, Tier I & II)
- Tier I: 6% of pensionable pay up to KES 8,000 = max KES 480
- Tier II: 6% of pay from 8,001 to 72,000 = max KES 4320
- Total maximum NSSF deduction in 2025 = KES 4,320
2. SHIF (Social Health Insurance Fund)
From July 2024, SHIF replaced NHIF. Contributions are now 2.75% of gross salary, capped at KES 5,000.
Example:
If your gross salary is KES 60,000:
- SHIF = 60,000 × 2.75% = 1,650
If your gross salary is KES 250,000, SHIF would be capped at 5,000.
3. Affordable Housing Levy
Introduced in 2023, the housing levy is 1.5% of gross salary, also matched by employer.
Example:
Gross salary = 60,000 → 60,000 × 1.5% = 900
Worked Example – Net Salary Calculator Kenya (2025)
Let’s calculate the take-home pay for an employee earning KES 100,000 gross salary.
Before PAYE is applied, the following deductions are made from gross pay:
- NSSF: 6% of pensionable earnings up to the current limits (Tier I = KSh 8,000, Tier II = up to KSh 72,000).
- For KSh 100,000: NSSF = KSh 4,320.
- SHIF (Social Health Insurance Fund): 2.75% of gross (minimum 300, no cap).
- For KSh 100,000: SHIF = KSh 2,750.
- Housing Levy: 1.5% of gross.
- For KSh 100,000: Housing Levy = KSh 1,500.
Taxable income = Gross – NSSF – SHIF – Housing Levy = 100,000 – 4,320 – 2,750 – 1,500 = KSh 91,430
Tax on KSh 91,430 (by law):
- First 24,000 @10% = 2,400
- Next 8,333 @25% = 2,083.25
- Next 8,333 @30% = 2,499.90
- Next 8,333 @32.5% = 2,708.23
- Balance (91,430 – 49,000 = 42,430) @35% = 14,850.50
Gross tax = 24,542, Less personal relief = 2,400 => Net PAYE = 22,142
NET PAY = Gross – NSSF – SHIF – Housing Levy – PAYE = 100,000 – 4,320 – 2,750 – 1,500 – 22,142 = KSh 69,288
👉 Quick Read: Profitable Side Hustles in Nairobi Under Ksh 5000
The Disconnect: Law vs Kenya Online Payroll Calculators
Here’s where it gets tricky.
- By law (Finance Act 2023): All income above KSh 49,000 should be taxed at 35%. That’s what we applied above.
- In practice: Many payroll calculators, HR systems, and even KRA’s iTax backend appear to still use the old graduated system. They only start applying 35% when taxable income goes beyond KSh 500,000.
This explains why if you try a gross salary of KSh 100,000 on most Kenya PAYE calculators online, you’ll often get a slightly higher net pay (≈ KSh 70,500) compared to the legal interpretation (≈ KSh 69,288).
Why Does This Matter?
For employees:
- If you rely on online calculators, your take-home might look higher than what is actually correct in law.
- Always check against official KRA tax bands and your payslip.
For employers:
- Payroll compliance is key. If KRA reconciles the discrepancy later, underpaid taxes may attract penalties.
- Quick Reference Table – Kenya Salary Deductions 2025
Why Use our Online Kenya Tax Calculator?
Instead of manually calculating PAYE, SHIF, NSSF, and Housing Levy every month, a Kenya net salary calculator 2025 does it instantly. With just your gross salary input, you’ll see:
- PAYE tax
- NSSF contributions
- SHIF deductions
- Housing Levy
- Net Salary (Take-Home Pay)
This helps employees budget better and employers confirm compliance with KRA, NSSF, and SHIF rules.
New NSSF Rates in Kenya (Effective February 2025)
From February 2025, the new NSSF rates in Kenya increase the pension contribution limits. Tier 1 covers the first KSh 8,000 of gross pay, where both employer and employee contribute KSh 480 each. Tier 2 applies from KSh 8,001 to KSh 72,000, where both contribute KSh 3,840 each. This brings the total NSSF deduction for employees to KSh 4,320, matched by employers for a combined KSh 8,640 monthly contribution.
These updated NSSF pension deductions in Kenya 2025 ensure higher retirement savings for employees while aligning with the NSSF Act 2013.
| Limit | Employee Contribution | Employer Contribution | Total Contribution |
|---|---|---|---|
| Tier 1 (up to KSh 8,000) | KSh 480 | KSh 480 | KSh 960 |
| Tier 2 (8,001 – 72,000) | KSh 3,840 | KSh 3,840 | KSh 7,680 |
| Total NSSF Contribution | KSh 4,320 | KSh 4,320 | KSh 8,640 |
FAQs – Kenya Tax Calculator 2025
How do I calculate my net salary in Kenya?
Use this formula: Net Salary = Gross – (PAYE – Relief + NSSF + SHIF + Housing Levy).
What is the SHIF deduction rate in Kenya 2025?
SHIF is charged at 2.75% of gross salary, with no cap (upper limit).
How much is the housing levy in Kenya?
It’s 1.5% of gross salary, deducted monthly, with no cap (upper limit)
How much is NSSF in Kenya 2025?
Maximum KES 4,320 (KES 480 Tier I + KES 3,840 Tier II). Employees contribute up to KES 4,320 monthly (6% of Tier I & Tier II), matched by employer.
