Bonus Tax Calculator Kenya
How much of a bonus is lost to tax?
Your normal gross pay before deductions.
Bonus, commission or 13th cheque before tax.
Leave blank for the current NSSF rates.
Allowances, reliefs and other details
Monthly taxable cash allowances.
Taxable value of a car, housing or loan.
Registered scheme, on top of NSSF.
Owner-occupied home loan.
Life, education or health. Not SHIF.
No personal relief is given on pay received after you leave.
Bonus
month paid · 2026 rates- Effective PAYE on bonus
- 28.44%
- All deductions on bonus
- 33.65%
- Top band in bonus month
- 30%
| Item | Normal | With bonus |
|---|---|---|
| Gross pay | 100,000.00 | 150,000.00 |
| Taxable pay | 89,750.00 | 137,145.00 |
| PAYE | 19,308.35 | 33,526.85 |
| Net pay | 70,441.65 | 103,618.15 |
| Top tax band | 30% | 30% |
How it's worked out
- Work out a normal month: PAYE, NSSF, SHIF and housing levy on your salary alone.
- Work out the bonus month: the same calculation with the bonus added to that month's pay.
- Take the difference. Extra PAYE, NSSF, SHIF and housing levy are what the bonus costs you. Net bonus is the bonus minus those extras.
- Effective rate on the bonus is extra PAYE divided by the bonus.
- Annual view: PAYE over 11 normal months and the bonus month is compared with tax on the year's total using annual bands and KES 28,800 personal relief.
Monthly PAYE bands for 2026
| Taxable pay per month (KES) | Rate |
|---|---|
| First 24,000 | 10% |
| Next 8,333 (to 32,333) | 25% |
| Next 467,667 (to 500,000) | 30% |
| Next 300,000 (to 800,000) | 32.5% |
| Above 800,000 | 35% |
Questions people ask
How is a bonus taxed in Kenya?
It is added to your pay for the month it is paid and PAYE is worked out on the total. So the bonus is taxed at your highest band or bands, and SHIF and housing levy also apply to it.
Is a 13th cheque taxed differently?
No. A 13th cheque is treated like any other bonus: taxable in the month it is paid, with SHIF, housing levy and, below the NSSF ceiling, NSSF deducted too.
Why was so much tax taken from my bonus?
A large bonus can push that month's pay into the 30%, 32.5% or 35% bands. Your annual return uses annual bands, which can lower the final tax and leave some PAYE to claim back.
Are bonuses tax-free for low earners?
Not any more. The exemption on bonuses and overtime for low earners was removed by the Finance Act 2020.
Sources
Rates last checked 13 Sep 2026. Estimates only, not tax or legal advice.