In Short: Kenya PAYE Tax Brackets (2026)
Kenya's PAYE rates run from 10% to 35% across five monthly income bands, beginning at KES 24,000 and reaching 35% on income above KES 800,000. Every resident taxpayer receives a monthly personal relief of KES 2,400. All brackets are applied to taxable pay (gross minus NSSF, SHIF, and Housing Levy), not total gross remuneration.
Whether you are an employee checking your monthly payslip or an HR professional configuring payroll systems, calculating employment tax requires a verified PAYE calculator built on the current statutory tax bands legislated by Parliament under the Income Tax Act.
Monthly PAYE bands (2026)
The table below details the five progressive individual tax brackets active in Kenya for the 2026 tax year, alongside their annual equivalents and maximum tax liability within each band:
| Monthly Taxable Income Band (KES) | Tax Rate | Maximum Monthly Tax | Annual Equivalent Band (KES) | Max Annual Tax |
|---|---|---|---|---|
| First 24,000 | 10.0% | KES 2,400.00 | First 288,000 | KES 28,800.00 |
| Next 8,333 (24,001 to 32,333) | 25.0% | KES 2,083.25 | Next 99,996 (288,001 to 387,996) | KES 24,999.00 |
| Next 467,667 (32,334 to 500,000) | 30.0% | KES 140,300.10 | Next 5,612,004 (387,997 to 6,000,000) | KES 1,683,601.20 |
| Next 300,000 (500,001 to 800,000) | 32.5% | KES 97,500.00 | Next 3,600,000 (6,000,001 to 9,600,000) | KES 1,170,000.00 |
| Above 800,000 | 35.0% | No upper cap | Above 9,600,000 | No upper cap |
How the bands apply: a progressive example
A common misunderstanding among taxpayers is assuming that entering a higher tax bracket causes their entire salary to be taxed at that higher rate. In Kenya, income tax is strictly marginal: each portion of your taxable earnings is taxed only within its designated band.
Consider an employee with a gross salary of KES 100,000. After subtracting allowable statutory deductions (NSSF KES 6,000, SHIF KES 2,750, and Housing Levy KES 1,500), their net taxable pay is KES 89,750.00. This taxable pay is sliced across three distinct brackets:
- Band 1 (First KES 24,000 @ 10%): KES 24,000 × 10% = KES 2,400.00
- Band 2 (Next KES 8,333 @ 25%): KES 8,333 × 25% = KES 2,083.25
- Band 3 (Remaining KES 57,417 @ 30%): (KES 89,750 - KES 32,333) = KES 57,417 × 30% = KES 17,225.10
Summing these bands yields a gross tax before relief of KES 21,708.35. Deducting the resident monthly personal relief of KES 2,400 results in a final net PAYE liability of KES 19,308.35. For a full step-by-step breakdown of this example, read our complete guide on how to calculate PAYE in Kenya.
Personal relief and other reliefs
Every resident individual taxpayer in Kenya is entitled to a personal tax relief of KES 2,400 per month (KES 28,800 annually). This relief directly offsets your calculated tax liability. In addition, taxpayers contributing to qualifying life insurance, medical insurance, or approved education policies (with at least 10 years maturity) can claim insurance relief of 15% of premiums paid, capped at KES 5,000 per month (KES 60,000 per year). Explore all qualifying rules in our guide to PAYE reliefs and allowable deductions.
What is the average PAYE percentage on common salaries?
Because of progressive tax brackets and statutory personal relief, an employee’s effective tax rate (total PAYE divided by gross earnings) is significantly lower than their top marginal bracket. The table below illustrates the effective PAYE rate across common income levels:
| Gross Pay | NSSF | SHIF | Housing Levy | PAYE | Net Take-Home | Net % |
|---|---|---|---|---|---|---|
| KES 20,000 | KES 1,200.00 | KES 550.00 | KES 300.00 | KES 0.00 | KES 17,950.00 | 89.75% |
| KES 25,000 | KES 1,500.00 | KES 687.50 | KES 375.00 | KES 0.00 | KES 22,437.50 | 89.75% |
| KES 30,000 | KES 1,800.00 | KES 825.00 | KES 450.00 | KES 731.25 | KES 26,193.75 | 87.31% |
| KES 40,000 | KES 2,400.00 | KES 1,100.00 | KES 600.00 | KES 3,153.35 | KES 32,746.65 | 81.87% |
| KES 50,000 | KES 3,000.00 | KES 1,375.00 | KES 750.00 | KES 5,845.85 | KES 39,029.15 | 78.06% |
| KES 60,000 | KES 3,600.00 | KES 1,650.00 | KES 900.00 | KES 8,538.35 | KES 45,311.65 | 75.52% |
Bands are applied to taxable pay, not gross pay
It is vital to distinguish between gross earnings and taxable income. Under Kenyan tax law, mandatory employee contributions to NSSF, SHIF, and the Affordable Housing Levy are allowable statutory deductions. They are removed from your gross remuneration before tax brackets are applied. For a comprehensive overview of how these deductions interact, consult our statutory deductions hub and our knowledge pillar on PAYE in Kenya.