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Nigeria PAYE Tax Calculator
Enter your salary and see your exact take-home pay under the Nigeria Tax Act 2025 — PAYE broken down band by band, plus pension, NHF and rent relief. Monthly or annual, gross or full breakdown.
PAYE band-by-band (monthly equivalent)
| Band | Rate | Taxed amount | Tax |
|---|---|---|---|
| First ₦800,000 | 0% | ₦66,667 | ₦0 |
| Next ₦2,200,000 | 15% | ₦183,333 | ₦27,500 |
| Next ₦9,000,000 | 18% | ₦214,000 | ₦38,520 |
| Total PAYE (13.2% effective on gross) | ₦66,020 | ||
Estimates only. Results are based on the configured rates (as at 1 January 2026 (Nigeria Tax Act 2025)) and the assumptions shown. Actual liability depends on current law and your individual circumstances. This is not professional tax advice — confirm with a qualified adviser or the relevant tax authority.
How this calculator works
The calculator applies the personal income tax rules of the Nigeria Tax Act 2025, effective from January 2026. It first deducts your tax-deductible contributions — employee pension (default 8% of Basic + Housing + Transport), NHF (2.5% of basic, optional) and NHIS — plus rent relief (20% of annual rent paid, capped at ₦500,000) to arrive at taxable income. That taxable income is then taxed progressively: the first ₦800,000 at 0%, then 15%, 18%, 21%, 23% and 25% on successive bands, exactly as shown in the band-by-band table.
Employer-side obligations — 10% employer pension, NSITF and ITF — are shown for context but never deducted from your pay. If you enter only total gross, the calculator assumes a standard salary structure to estimate pension and NHF; enter the Basic/Housing/Transport breakdown for exact figures.
Rates are maintained in a documented configuration reviewed against current law. See also: how the full platform handles statutory compliance.
PAYE questions, answered
Under the Nigeria Tax Act 2025 (effective January 2026), deduct pension, NHF and eligible reliefs (such as rent relief — 20% of annual rent, capped at ₦500,000) from gross income to get taxable income, then tax it in bands: first ₦800,000 at 0%, next ₦2,200,000 at 15%, next ₦9,000,000 at 18%, next ₦13,000,000 at 21%, next ₦25,000,000 at 23%, and above ₦50,000,000 at 25%.
Now imagine payroll doing this for everyone, automatically
PAYE, pension, NHF, payslips and bank disbursement for your whole team — every month, without spreadsheets.