PAYE Tax Calculator Nigeria 2026: Take-Home Pay Under the New Tax Act
Enter your yearly gross pay to see your PAYE and take-home pay under the Nigeria Tax Act 2025, in force since 1 January 2026.
Rates checked 13 Oct 2026 against official sources (listed below).
Tax bands (a year)
- ₦0 – ₦800,0000%
- ₦800,001 – ₦3,000,00015%
- ₦3,000,001 – ₦12,000,00018%
- ₦12,000,001 – ₦25,000,00021%
- ₦25,000,001 – ₦50,000,00023%
- Above ₦50,000,00025%
Take-home pay (a year)
₦4,854,480
Take-home a month
₦404,540
Income tax
₦809,520
Effective tax rate
13.5%
Taxable income
₦5,664,000
| Item | NGN |
|---|---|
| Gross pay | ₦6,000,000 |
| − Pension (8%) | ₦336,000 |
| − NHF (2.5%) | ₦0 |
| Taxable income | ₦5,664,000 |
| Tax on bands | ₦809,520 |
| − Income tax | ₦809,520 |
| Take-home pay | ₦4,854,480 |
Bands from the Fourth Schedule of the Nigeria Tax Act 2025, effective 1 January 2026, checked against PwC's Nigeria tax summary (reviewed 29 May 2026). The minimum-wage PAYE exemption is pegged to the national minimum wage, ₦70,000 a month as of October 2026 — it moves if the minimum wage changes. NHF contributions are voluntary for private-sector employees but remain deductible when made; NHIS contributions are also deductible but aren't included here.
The full explanation, with worked examples and what to watch for: PAYE in Nigeria 2026: New Tax Bands and What You Pay on Your Salary
About this calculator
The first ₦800,000 a year is tax-free, and tenants can claim rent relief.
How PAYE is worked out under the new law
- Pension (8% of basic, housing and transport) comes off your gross pay. If you also pay into the National Housing Fund (NHF), at 2.5% of basic salary (optional for private-sector employees since the 2025 reform), that's deductible too.
- Rent relief of 20% of the rent you actually pay, up to ₦500,000, lowers your taxable income further. Homeowners can't claim it.
- What's left is taxed in bands: 0% on the first ₦800,000, then 15%, 18%, 21%, 23% and 25% on income above ₦50 million.
The Consolidated Relief Allowance (₦200,000 plus 20% of gross) was repealed, so rent relief is now the main personal relief. Anyone earning Nigeria's minimum wage (₦70,000 a month) or less pays no PAYE at all, whatever band the maths would otherwise put them in.
Frequently asked questions
What is the tax-free amount in Nigeria from 2026?
The first ₦800,000 of taxable income each year is taxed at 0%. Workers earning no more than the ₦70,000 monthly minimum wage pay no PAYE at all, on top of that band.
How much tax do I pay on ₦500,000 a month in Nigeria?
On ₦6,000,000 a year with ₦4,200,000 of basic, housing and transport, pension is ₦336,000, leaving ₦5,664,000 taxable. Tax is ₦330,000 on the 15% band plus ₦479,520 on the 18% band: about ₦809,520 a year, or ₦67,460 a month.
Who can claim rent relief?
Tenants who pay rent on the home they live in. You claim 20% of the annual rent, up to ₦500,000, by declaring your rent to your employer (or to the tax authority if self-employed).
Is the Consolidated Relief Allowance still available?
No. The Nigeria Tax Act 2025 repealed it from 1 January 2026.
Does FIRS still handle PAYE in Nigeria?
No. The Federal Inland Revenue Service (FIRS) was renamed the Nigeria Revenue Service (NRS) under the same reform, so PAYE now falls under the NRS alongside state revenue services for the state-level share.
Is the National Housing Fund (NHF) deduction compulsory?
Not for private-sector employees. Since the 2025 reform, NHF contributions are voluntary for private-sector staff, though the 2.5%-of-basic-salary contribution is still tax-deductible if you choose to make it.