Nigeria PAYE Calculator (2026 Tax Act)
Enter your monthly salary to see what you pay under the Nigeria Tax Act 2025 bands, in force since 1 January 2026, and what actually reaches your account.
Rent relief is 20% of this, capped at ₦500,000. Enter 0 if you pay no rent.
% of gross
Pension is charged on these three components, not on total pay. Most Nigerian packages sit near 80%.
Monthly take-home pay
₦404,860
₦63,140 PAYE and ₦32,000 pension deducted · 12.6% effective tax rate
- Gross annual income
- ₦6,000,000
- Less pension (8%)
- (₦384,000)
- Less rent relief
- (₦240,000)
- Chargeable income
- ₦5,376,000
- Annual PAYE
- ₦757,680
- Monthly PAYE
- ₦63,140
How the bands apply
| Band | Taxed | Rate | Tax |
|---|---|---|---|
| First ₦800,000 | ₦800,000 | 0% | ₦0 |
| Next ₦2,200,000 | ₦2,200,000 | 15% | ₦330,000 |
| Next ₦9,000,000 | ₦2,376,000 | 18% | ₦427,680 |
Common questions
- What are the PAYE rates in Nigeria for 2026?
- Personal income tax is charged at 0% on the first ₦800,000 of annual chargeable income, then 15% on the next ₦2,200,000, 18% on the next ₦9,000,000, 21% on the next ₦13,000,000, 23% on the next ₦25,000,000, and 25% on anything above ₦50,000,000. The bands are cumulative — crossing into a higher band only taxes the portion inside it.
- How is chargeable income worked out?
- Start with gross annual pay, then deduct your pension contribution of 8% of basic, housing and transport allowances, and rent relief of the lower of 20% of annual rent paid or ₦500,000. National Housing Fund and National Health Insurance contributions and life assurance premiums are also deductible where you have documentation. What remains is chargeable income, and the bands apply to that.
- What happened to the Consolidated Relief Allowance?
- It was abolished by the Nigeria Tax Act 2025 and replaced with rent relief. The CRA gave every taxpayer the higher of ₦200,000 or 1% of gross income plus a further 20% of gross income, automatically. Rent relief is capped at ₦500,000, and you have to actually pay rent to claim it.
- Do I pay tax on the minimum wage?
- No. Anyone earning at or below the national minimum wage of ₦70,000 a month is outside personal income tax entirely under the 2025 Act. That is different from being taxed at 0% — there is no liability at all.
- Why does the calculator ask for basic, housing and transport?
- Because pension is charged on those three components rather than on total pay. Nigerian packages are usually structured so they make up around 80% of gross, but it varies by employer, and the split changes your deduction and therefore your tax.
- Am I better off under the new rates?
- Below roughly ₦1.3m a month, yes — modestly. Above that the bill rises, and it climbs steeply at the top because the reliefs were cut at the same time as the bands were widened. Someone on ₦4.5m a month pays around ₦1.36m more over a year.
A guide based on the Nigeria Tax Act 2025 as enacted. It is not tax advice — speak to a qualified adviser or the FIRS about your own circumstances.