How it's worked out
Deductions first, then the tax bands, then the reliefs.
Since 27 December 2024, SHIF, NSSF and the housing levy come off pay before PAYE. Rates checked 22 October 2026 against KRA, SHA, NSSF and the Finance Act 2026.
- 1 · Off gross pay
- NSSF 6% (Tier I to 9,000, Tier II to 108,000, at most 6,480), SHIF 2.75% (at least 300, no maximum), housing levy 1.5%.
- 2 · PAYE bands
- 10% to 24,000 · 25% to 32,333 · 30% to 500,000 · 32.5% to 800,000 · 35% above 800,000, each on its own slice of taxable pay.
- 3 · Reliefs
- Personal relief 2,400 a month, and 15% of private insurance premiums up to 5,000. PAYE never goes below zero.
- Employer adds
- A matching NSSF contribution, 1.5% housing levy and the 50 NITA levy. There is no employer SHIF.