PAYE Tax Calculator Nigeria
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PAYE Tax Calculator Nigeria 2026

Calculate Nigerian PAYE income tax (2026)

₦

Salary Structure

40%
30%
10%
Others20%
₦

₦65,840

Monthly PAYE Tax

₦397,160

Monthly Take-Home

₦790,080

Annual PAYE Tax

13.2%

Effective Tax Rate

Monthly Breakdown

Gross Salary₦500,000
Pension (8%)−₦32,000
NHF (2.5%)−₦5,000
PAYE Tax−₦65,840
Take-Home Pay₦397,160

Tax Bands Applied

BandRateTaxableTax
First ₦800,0000%₦800,000₦0
₦800,001 – ₦3,000,00015%₦2,200,000₦330,000
₦3,000,001 – ₦10,000,00018%₦2,556,000₦460,080
Total Annual PAYE₦790,080

Based on Nigeria Tax Act 2025, effective January 2026. This calculator provides estimates for informational purposes. Consult a qualified tax professional for advice.

How to Use

  1. 1

    Enter your monthly gross salary in Naira. The default salary structure (Basic 40%, Housing 30%, Transport 10%, Others 20%) is pre-filled — adjust the sliders if your payslip uses different percentages.

  2. 2

    Enter your annual rent paid (if any) to claim the Rent Relief deduction. Toggle Pension and NHF on or off depending on whether your employer deducts these.

  3. 3

    Your monthly PAYE tax, annual tax, effective tax rate, and take-home pay are calculated instantly using the six tax bands from the Nigeria Tax Act 2025.

  4. 4

    Review the breakdown table to see each deduction line by line, and the tax band table to see exactly how your chargeable income is taxed at each rate.

Frequently Asked Questions

What changed in the Nigeria Tax Act 2025? ▼
The Nigeria Tax Act 2025, effective January 1, 2026, replaced the Personal Income Tax Act (PITA). The biggest change is the abolition of the Consolidated Relief Allowance (CRA), which was 20% of gross income plus ₦200,000 as a flat amount. In its place, the new law introduced Rent Relief (20% of annual rent paid, capped at ₦500,000) and a new six-band tax table starting with a 0% rate on the first ₦800,000 of chargeable income. The top marginal rate is now 25% on income above ₦50 million, compared to the old top rate of 24%.
What is the 0% tax band and how does it work? ▼
Under the new law, the first ₦800,000 of chargeable income (after deductions) is taxed at 0%. This effectively replaces the old CRA as the main relief for lower-income earners. For someone earning around ₦150,000 per month or less, this zero-rate band means their entire chargeable income may fall within it, resulting in zero or very little PAYE tax. This is a significant benefit for low-to-middle income Nigerian workers.
What is Rent Relief and who qualifies? ▼
Rent Relief is a new deduction introduced by the Nigeria Tax Act 2025 to replace part of the old CRA. It equals 20% of your actual annual rent paid, capped at a maximum of ₦500,000. To claim it, you must provide evidence of rent payment to your employer. If you own your home outright or do not pay rent, this relief does not apply to you and your chargeable income will be higher as a result.
How is employee pension contribution calculated? ▼
Under the Pension Reform Act, employees contribute a minimum of 8% of their basic salary, housing allowance, and transport allowance combined. This contribution is deducted before tax, reducing your chargeable income. Not all employers enrol staff in pension schemes — if you work in the informal sector or for a small company not covered by the Pension Act, you may not have pension deductions.
What is NHF and is it mandatory? ▼
The National Housing Fund (NHF) is a 2.5% deduction on basic salary, established by the National Housing Fund Act. It applies to employees earning the national minimum wage or above and is used to fund the Federal Mortgage Bank. Like pension, NHF is deducted before tax. Contributions are refundable upon retirement or if you use them toward a National Housing Fund mortgage. In practice, not all private employers deduct NHF, so toggle it off if it does not appear on your payslip.
What are the six PAYE tax bands for 2026? ▼
The Nigeria Tax Act 2025 sets six progressive tax bands on chargeable income: 0% on the first ₦800,000, 15% on ₦800,001 to ₦3,000,000, 18% on ₦3,000,001 to ₦10,000,000, 21% on ₦10,000,001 to ₦25,000,000, 23% on ₦25,000,001 to ₦50,000,000, and 25% on any amount above ₦50,000,000. The tax is cumulative — you pay each rate only on the portion of income falling within that band, not on your entire income.

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About this Tool

The PAYE Tax Calculator Nigeria is a free tool that calculates your Pay-As-You-Earn income tax based on the Nigeria Tax Act 2025, which took effect on January 1, 2026. This new tax law replaced the Personal Income Tax Act (PITA) and introduced significant changes to how Nigerian employees are taxed. The old Consolidated Relief Allowance (CRA) — which gave every taxpayer 20% of gross income plus a flat ₦200,000 — has been abolished. In its place, the new law provides a 0% tax rate on the first ₦800,000 of chargeable income and a Rent Relief deduction capped at ₦500,000 per year. The calculator lets you enter your monthly gross salary and customise the salary structure breakdown (basic, housing, transport, and others) to match your payslip. It then computes statutory deductions including employee pension contribution (8% of basic, housing, and transport under the Pension Reform Act) and the National Housing Fund levy (2.5% of basic salary). After deductions and rent relief, your chargeable income is taxed across six progressive bands ranging from 0% to 25%. The result shows your monthly and annual PAYE tax, effective tax rate, and take-home pay, with a line-by-line breakdown of every deduction and a table showing exactly how much tax applies at each band. This is especially useful for Nigerian employees, HR professionals processing payroll, job seekers evaluating salary offers, and freelancers estimating their tax obligations. All calculations run in your browser — no data is sent to any server. This tool provides estimates for planning purposes and should not be treated as official tax advice. Consult a qualified tax professional or the Federal Inland Revenue Service (FIRS) for definitive guidance on your tax obligations.