Nigeria PAYE calculator 2026
Work out your take-home pay under the Nigeria Tax Act 2025, which took effect on 1 January 2026. The first ₦800,000 a year is tax-free and rent relief replaces the old consolidated relief allowance.
PAYE rates in Nigeria
| Annual taxable income (NGN) | Rate |
|---|---|
| Up to 800,000 | 0% |
| 800,000 – 3,000,000 | 15% |
| 3,000,000 – 12,000,000 | 18% |
| 12,000,000 – 25,000,000 | 21% |
| 25,000,000 – 50,000,000 | 23% |
| Above 50,000,000 | 25% |
In force from 1 January 2026. Each rate applies only to the part of income inside its band.
Deductions and reliefs
| Item | How it works |
|---|---|
| Pension (employee) | 8% of pensionable pay (basic, housing and transport). Deductible. |
| National Housing Fund | 2.5% of basic salary, if you contribute. Deductible. |
| Rent relief | 20% of annual rent you pay, up to ₦500,000. |
Good to know
- The consolidated relief allowance (CRA) has been removed and replaced by rent relief.
- NHIS contributions, life insurance premiums and mortgage interest on your own home are also deductible but are not included here.
- The calculator applies pension and NHF to your full gross pay. If your basic, housing and transport pay is lower, your contribution will be smaller.
Common questions
What are the new tax bands in Nigeria from 2026?
The first ₦800,000 a year is tax-free. The next ₦2.2 million is taxed at 15%, the next ₦9 million at 18%, the next ₦13 million at 21%, the next ₦25 million at 23%, and income above ₦50 million at 25%.
Is the consolidated relief allowance still available?
No. The Nigeria Tax Act 2025 removed the CRA. Instead you can claim rent relief of 20% of the rent you pay, up to ₦500,000 a year.
Do minimum wage earners pay tax?
No. Employees earning the national minimum wage or less no longer have PAYE deducted, and the first ₦800,000 of anyone's income is taxed at 0%.
Sources
- PwC Tax Summaries: Nigeria personal income tax
- PwC Tax Summaries: Nigeria deductions
- Safeguard Global: Nigeria Tax Act 2025
This calculator gives an estimate for a resident employee with one job. Your payslip can differ because of allowances, benefits, other reliefs or how your employer runs payroll. It is not tax advice.