A Nigeria PAYE calculator for the 2026 tax rules
From 1 January 2026, PAYE in Nigeria follows the Nigeria Tax Act, 2025. The consolidated relief allowance is gone; instead the first ₦800,000 of chargeable income is taxed at 0%, the rest in bands from 15% to 25%, and renters get a new rent relief. This PAYE calculator for Nigeria turns your salary into monthly PAYE, pension, National Housing Fund (NHF) and net pay under those rules.
Enter your basic salary and allowances, tick the contributions your employer deducts and add your annual rent. You see your payslip, how gross pay becomes chargeable income, the tax in each band and what your employer adds to your pension. It is an estimate for information, not tax advice.
How to use the Nigeria PAYE Calculator 2026
- Choose whether you are entering monthly or annual amounts.
- Enter basic salary, housing, transport and other allowances.
- Keep pension and NHF ticked if they are deducted from your pay, and adjust the rates if your employer uses different ones. Add any NHIS contribution.
- Enter the rent you pay a year, and any life insurance premium or interest on a loan for your own home.
- Read your monthly PAYE, net pay and chargeable income, then check the band table and copy the breakdown.
Nigeria PAYE Calculator 2026 features
2026 tax bands
The six Fourth Schedule bands: 0%, 15%, 18%, 21%, 23% and 25%.
Every eligible deduction
Pension, NHF, NHIS, home-loan interest, life insurance and rent relief, as listed in section 30.
Rent relief
20% of the rent you pay, capped at ₦500,000 a year.
Minimum-wage exemption
Pay at or below the national minimum wage is tax-free.
Payslip view
Monthly and annual gross pay, deductions, PAYE and net pay, with a chart.
PAYE tax bands in Nigeria from 2026
| Chargeable income | Rate | Tax at the top of the band |
|---|---|---|
| First ₦800,000 | 0% | ₦0 |
| Next ₦2,200,000 (to ₦3 million) | 15% | ₦330,000 |
| Next ₦9,000,000 (to ₦12 million) | 18% | ₦1,950,000 |
| Next ₦13,000,000 (to ₦25 million) | 21% | ₦4,680,000 |
| Next ₦25,000,000 (to ₦50 million) | 23% | ₦10,430,000 |
| Above ₦50,000,000 | 25% | — |
How PAYE is calculated — worked example
Chargeable income is your total income minus eligible deductions. Take ₦500,000 a month: basic ₦250,000, housing ₦100,000, transport ₦50,000 and other allowances ₦100,000 — ₦6,000,000 a year. Pension at 8% of basic, housing and transport is ₦384,000; NHF at 2.5% of basic is ₦75,000; rent of ₦1,200,000 gives rent relief of ₦240,000. Chargeable income: ₦6,000,000 − ₦699,000 = ₦5,301,000.
Tax: 0% on the first ₦800,000, 15% on the next ₦2,200,000 (₦330,000) and 18% on the remaining ₦2,301,000 (₦414,180) — ₦744,180 a year, or ₦62,015 a month. Net pay after pension, NHF and PAYE: ₦399,735 a month.
What changed from the old rules
- The Personal Income Tax Act, with its consolidated relief allowance and 7%–24% bands, was repealed by the Nigeria Tax Act; the new bands apply from the 2026 year of assessment (1 January to 31 December).
- Rent relief is new: claim it by declaring your actual rent and keeping the tenancy agreement or receipts.
- PAYE is still deducted by your employer and paid to your State Internal Revenue Service.
- Kenya and Ghana use different PAYE systems; this calculator covers Nigeria only. For other countries try the salary calculator or the UK take-home pay calculator.
Nigeria PAYE Calculator 2026 FAQ
How do I use the PAYE calculator for Nigeria?
Enter your basic salary and allowances, leave pension and NHF ticked if they are deducted, add your annual rent, and read the monthly PAYE and net pay.
Who pays no PAYE in Nigeria from 2026?
Anyone whose chargeable income is ₦800,000 a year or less pays 0%, and employment income at or below the national minimum wage is exempt.
How much is rent relief?
20% of the annual rent you pay, up to ₦500,000. You reach the cap at ₦2.5 million of rent a year.
Is pension deducted before tax?
Yes. Your own contributions under the Pension Reform Act, NHF and NHIS are eligible deductions, so they reduce your chargeable income.
Is this Nigeria PAYE calculator 2026 official?
No. It applies the published Nigeria Tax Act, 2025, but your employer’s payroll and the State Internal Revenue Service have the final figure.
What is the highest PAYE rate in Nigeria?
25%, on chargeable income above ₦50 million a year.
How do I include a bonus or leave allowance?
Switch to annual amounts and add the yearly bonus or leave allowance to other allowances. It is part of your total income and is taxed in the same bands; your employer usually deducts the extra PAYE in the month it is paid.
Is PAYE different in Lagos, Abuja or other states?
No. The Nigeria Tax Act sets the same bands and reliefs everywhere; only the collector differs — the State Internal Revenue Service where you live.