You notice, that most people are sentimental about this. Often, they find this idea offensive, but it is an indisputable fact, as far as scripture is concerned.

Shiva is a Jiva. Kali is a Jiva. Everyone except Narayana is a Jiva.

Pramana - Read Shathapatha Brahmana. When Rudra was born, he cried to Brahma, asking him to remove his (Rudra's) sins. Only a jiva has sins.

Another Pramana - It is clearly stated everywhere in scripture that the life of Brahma is some 155 trillion human years. After this, the current Brahma dies. So, it is clear that Brahma is simply a post occupied by a Jiva which also transmigrates. If Brahma is accepted to be a Jiva, then why is Shiva not Jiva?

Lord Krishna clearly states in the Gita that every loka except Vaikuntha is in the material world.

It clearly shows that each post of a deva (including Shiva) is simply occupied by a Jiva for a particular time period. Which means, if you or me do some penance, we can become Shiva or Brahma in the next yuga as well.

Even Adi Sesha, Garuda and Lakshmi are Jivas. But they, being in Vaikuntha, are eternal and retain their identity forever. All other Devas from Brahma and Shiva onwards are still in samsara, that is irrefutable.

There is no pramana to show that Shiva is anything other than a Jiva.