Kenya PAYE tax bands 2026: rates, reliefs and a worked example
The current PAYE bands, every relief and deduction, and a step-by-step example so you can check your own payslip.
The PAYE bands
| Monthly taxable pay | Annual | Rate |
|---|---|---|
| Up to 24,000 | Up to 288,000 | 10% |
| 24,001 to 32,333 | 288,001 to 388,000 | 25% |
| 32,334 to 500,000 | 388,001 to 6,000,000 | 30% |
| 500,001 to 800,000 | 6,000,001 to 9,600,000 | 32.5% |
| Above 800,000 | Above 9,600,000 | 35% |
The Finance Act 2026 left the bands and the main reliefs unchanged.
What is deducted before tax
- Employee NSSF (6%, up to KES 6,480 a month).
- SHIF (2.75% of gross, minimum KES 300).
- The employee's 1.5% Housing Levy. There is no separate housing relief any more.
- Pension contributions up to KES 30,000 a month, and mortgage interest on your home up to KES 30,000 a month.
What comes off the tax
- Personal relief of KES 2,400 a month.
- Insurance relief of 15% of qualifying premiums, up to KES 5,000 a month.
Worked example: KES 50,000 a month
- NSSF 3,000, SHIF 1,375 and Housing Levy 750 total 5,125.
- Taxable pay is 50,000 less 5,125, which is 44,875.
- Tax: 10% of 24,000 is 2,400; 25% of 8,333 is 2,083; 30% of the remaining 12,542 is 3,763. That is 8,246.
- Less personal relief of 2,400 gives PAYE of about KES 5,846.
- Take-home pay is about KES 39,029.
Check any salary yourself in the PAYE calculator, or see how to lawfully lower the bill with the PAYE saver. Employers should read the guide to NSSF, SHIF and the Housing Levy, and individuals should note the new April 30 return deadline.
General information only, not tax advice. Rates and rules were checked in October 2026 and can change. Confirm with KRA or a qualified professional.
Calculators and guides to read next
PAYE, NSSF, SHIF and Housing Levy calculatorGross to net, net to gross and true employer cost.How to reduce PAYE calculatorPension, insurance and mortgage reliefs and what they save.Cost to company calculatorTurn a hiring budget into gross and take-home pay. NSSF, SHIF and Housing Levy 2026: what employers must deduct and payGuide · PayrollKRA income tax return deadlines from 2027: April 30, June 30 and January 31Guide · Deadlines
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