PAYE calculator Nigeria 2026
Income tax and take-home pay under the Nigeria Tax Act 2025.
Enter a basic salary to see the income tax and take-home pay.
Nigeria personal income tax bands
PAYE (Pay As You Earn) is income tax your employer deducts from your pay each month and pays to the tax authority of the state where you live. From 1 January 2026 the Nigeria Tax Act 2025 sets these annual bands:
| Taxable income per year | Rate |
|---|---|
| First ₦800,000.00 | 0% |
| Next ₦2,200,000.00 | 15% |
| Next ₦9,000,000.00 | 18% |
| Next ₦13,000,000.00 | 21% |
| Next ₦25,000,000.00 | 23% |
| Above ₦50,000,000.00 | 25% |
How PAYE is calculated
- Add your basic salary, housing, transport and other taxable allowances to get your gross pay for the year.
- Take off your pension contribution (8% of basic, housing and transport), National Housing Fund (2.5% of basic), NHIS contributions, life assurance premiums and interest on a mortgage for your own home.
- Take off rent relief: 20% of the rent you pay a year, up to ₦500,000. It replaced the old consolidated relief allowance.
- Tax what is left band by band, using the table above. Your employer deducts one twelfth each month.
If you earn no more than the national minimum wage (₦70,000 a month), you pay no income tax.
Sources: PwC, Nigeria: taxes on personal income and deductions.
These calculators are a guide, not tax advice. Check figures with the Nigeria Revenue Service or an accountant before you rely on them.