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Free tool · Nigeria tax 2026

Nigeria PAYE tax calculator 2026

See your monthly take-home pay under the new Nigeria Tax Act 2025, including the ₦800,000 tax-free band, pension, NHF and the new rent relief.

Your income

I'm entering my salary
₦
%

The employee minimum under the Pension Reform Act is 8%. Applied to gross pay here for simplicity.

₦

Rent relief is 20% of rent paid, up to ₦500,000.

Your take-home pay

₦394,700 / month

₦4,736,400 a year · you keep 78.9% of your pay
  • Take-home pay₦4,736,400
  • Income tax₦783,600
  • Pension contribution₦480,000
Gross salary
₦6,000,000
Taxable income
₦5,520,000
Income tax
₦783,600
Other deductions
₦480,000
Effective rate (all deductions)
21.1%
Marginal rate on next unit earned
18%
How your income tax is worked out
Taxable income bandRateTax
₦0 – ₦800,0000%₦0
₦800,000 – ₦3,000,00015%₦330,000
₦3,000,000 – ₦5,520,00018%₦453,600

Estimates for employees using standard rates only. They don't include tax codes, benefits in kind, student loans, other income or personal circumstances, and aren't financial or tax advice. Check with the tax authority or an adviser before making decisions.

How it works

How PAYE works under the Nigeria Tax Act 2025

From January 2026, Nigeria uses a simpler progressive system. First, allowable deductions come off your gross pay: your pension contribution (at least 8%), National Housing Fund (2.5%) if you contribute, and rent relief of 20% of the rent you pay, capped at ₦500,000.

What's left is your taxable income, taxed in bands: 0% on the first ₦800,000, then 15%, 18%, 21%, 23% and finally 25% on income above ₦50 million. Each rate only applies to the slice of income in that band.

For simplicity the calculator applies pension and NHF percentages to your gross salary. Strictly, pension is based on basic salary plus housing and transport allowances, and NHF on basic salary, so your payslip may differ slightly.

Sources

Rates checked October 2026 against the Nigeria Tax Act 2025, effective 1 January 2026.

Private by design

Every calculation runs in your browser. Nothing you type is sent to us or stored.

FAQ

Common questions

What are the new personal income tax rates in Nigeria for 2026?

Under the Nigeria Tax Act 2025, the first ₦800,000 of taxable income is taxed at 0%, the next ₦2.2 million at 15%, the next ₦9 million at 18%, the next ₦13 million at 21%, the next ₦25 million at 23%, and anything above ₦50 million at 25%.

Is the Consolidated Relief Allowance (CRA) still available?

No. The Consolidated Relief Allowance has been removed. It is replaced by the wider 0% band and a new rent relief of 20% of the annual rent you pay on your home, up to a maximum of ₦500,000.

Do minimum wage earners pay tax?

Employees earning no more than the national minimum wage are not liable to PAYE. In practice, anyone whose taxable income after deductions is ₦800,000 a year or less pays no income tax.

Which deductions reduce my taxable income?

Contributions to the national pension scheme, the National Housing Fund and the National Health Insurance Scheme, life assurance premiums, interest on loans for an owner-occupied home, and rent relief are deductible.

How do I claim rent relief?

You need to declare the actual rent you pay to the relevant tax authority, usually through your employer for PAYE. Keep your tenancy agreement, receipts or bank transfer records as evidence.

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