Why is my net pay lower than gross minus 30%?

PAYE is progressive, not a flat rate. On KES 100,000 gross with standard deductions, most of your tax sits in the 25% and 30% bands, but the first KES 24,000 is only taxed at 10%. SHIF, housing levy, and pension also come off before PAYE is calculated.

Does my employer's 6% pension reduce PAYE?

Yes, if it is an allowable pension contribution. KRA deducts qualifying pension (up to KES 30,000/month) from gross before applying tax bands. Turn on the pension toggles that match your payslip: NSSF tiers, contracted-out Tier II, or a private occupational % or fixed amount.

I still pay NSSF Tier I but Tier II goes to a private fund. How do I set that up?

Turn on NSSF Tier I, turn on NSSF Tier II, then enable Tier II contracted out. Tier I (max KES 540/month on the first KES 9,000) still goes to NSSF. Tier II (6% from KES 9,001 to KES 108,000) is redirected to your employer's registered private pension. The deduction still lowers your taxable pay.

Are SHIF and the housing levy deducted before or after PAYE?

Before. Both are allowable deductions that reduce taxable pay under current KRA payroll rules. This calculator subtracts pension, SHIF, and housing levy first, then computes PAYE on what remains.

Why does KRA show a different figure from this calculator?

Your employer may apply mortgage interest relief, post-retirement medical relief, or benefits-in-kind that we do not capture here. Bonuses, arrears, and non-cash allowances also change the final PAYE. Use this as a payslip sanity-check, then confirm on iTax or with your payroll team.

TaxOSby Tuzidi

Free

Paye Calculator

KRA-aligned take-home estimate: NSSF tiers, SHIF, housing levy, and progressive tax bands with personal relief.

Estimated net pay

Ksh 70,442

Monthly

Gross Monthly Salary100,000

PAYE (Income Tax)

−19,308

10% Band · First 24,0002,400

25% Band · Next 8,3332,083

30% Band · Balance 57,41717,225

Less Personal Relief−2,400

NSSF (Tier I + II)

−6,000

Tier I · 6% of first 9,000540

Tier II · 6% of 9,001–108,0005,460

SHIF (2.75%)

−2,750

Housing Levy (1.5%)

−1,500

Total Deductions−29,558

Net PayKsh 70,442

Common PAYE questions

Why is my net pay lower than gross minus 30%?: PAYE is progressive, not a flat rate. On KES 100,000 gross with standard deductions, most of your tax sits in the 25% and 30% bands, but the first KES 24,000 is only taxed at 10%. SHIF, housing levy, and pension also come off before PAYE is calculated.
Does my employer's 6% pension reduce PAYE?: Yes, if it is an allowable pension contribution. KRA deducts qualifying pension (up to KES 30,000/month) from gross before applying tax bands. Turn on the pension toggles that match your payslip: NSSF tiers, contracted-out Tier II, or a private occupational % or fixed amount.
I still pay NSSF Tier I but Tier II goes to a private fund. How do I set that up?: Turn on NSSF Tier I, turn on NSSF Tier II, then enable Tier II contracted out. Tier I (max KES 540/month on the first KES 9,000) still goes to NSSF. Tier II (6% from KES 9,001 to KES 108,000) is redirected to your employer's registered private pension. The deduction still lowers your taxable pay.
Are SHIF and the housing levy deducted before or after PAYE?: Before. Both are allowable deductions that reduce taxable pay under current KRA payroll rules. This calculator subtracts pension, SHIF, and housing levy first, then computes PAYE on what remains.
Why does KRA show a different figure from this calculator?: Your employer may apply mortgage interest relief, post-retirement medical relief, or benefits-in-kind that we do not capture here. Bonuses, arrears, and non-cash allowances also change the final PAYE. Use this as a payslip sanity-check, then confirm on iTax or with your payroll team.

These figures are educational estimates based on simplified, publicly available KRA rules and may not reflect your exact circumstances or the latest rates. They are not tax advice. Always confirm with KRA or a registered tax agent before filing or paying.