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Best PAYE Tax Calculator for Kenya
In Kenya, workers in formal employment are taxed through a deduction named Pay As You Earn (PAYE).
The formula for determining PAYE is based on Kenyan Tax Laws (Understanding Kenyan PAYE calculation).
For NET PAY CALCULATOR, use "Treat salary as net pay" option.
PAYE Calculator (Based on Finance Act 2023)
| Monthly Bands of Taxable Income (KES) | Tax Rate |
|---|---|
| 0 – 24,000 | 10% |
| On the next 8,333 | 25% |
| On the next 467,667 | 30% |
| On the next 300,000 | 32.5% |
| On amounts over 800,000 | 35% |
| Personal Relief: KES 2,400.00 per month | |
| Minimum Taxable Income: KES 24,001.00 per month | |
As an employee, your employer will deduct this tax and remit it to KRA on your behalf through KRA Online Portal. A special Microsoft Excel File dabbed iTax P10 file is used to compile all employee payroll data into a single uploadable zip file. See our iTax P10 how-to guide on how to fill this in.
PAYE returns deadline for a given month is the 9th day of the following month. Late payments attract a penalty fine of KES 10,000 (USD 100) charged to the employer.
Similarly, NSSF (National Social Security Fund) and NHIF (National Hospital Insurance Fund) are mandatory deductions collected and remitted to relevant statutory bodies on behalf of the employee.
NB:
- Effective January 2022, insurance relief is now applicable to NHIF after gazettement of the
The Finance Act No.8 of 2021 - Effective July 2023, 1.5% of gross salary is deducted from employee and another 1.5% as employer contribution as contribution towards housing levy. This follows the enforcement of Finance act 2023
- Effective October 2024, 2.75% of gross salary is deducted from each employee as Social Health Insurance Fund (SHIF) which replaces NHIF moving forward.
Wingubox Online Payroll will automatically generate your iTax P10 data, NSSF Excel file and NHIF Byproduct for you with its in-built statutory formats. It will also give you a broad array of Human Resource Management tools not available on paye calculators in excel sheets.
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