FASS
Free tool · Nigeria Tax Act 2025
PAYE calculator for Nigeria (2026)
Enter monthly pay and the rent you pay. See your PAYE, your take-home pay and exactly how each tax band adds up. No sign-up, and nothing you type leaves your browser.
Monthly PAYE
₦61,700
- Take-home pay (monthly)
- ₦398,300
- Effective tax rate
- 12.3%
How we worked it out (per year)
- Gross pay
- ₦6,000,000
- Less pension
- −₦480,000
- Less rent relief
- −₦240,000
- Chargeable income
- ₦5,280,000
| Band | Rate | Tax |
|---|---|---|
| ₦0 – ₦800,000 | 0% | ₦0 |
| ₦800,000 – ₦3,000,000 | 15% | ₦330,000 |
| ₦3,000,000 – ₦12,000,000 | 18% | ₦410,400 |
| ₦12,000,000 – ₦25,000,000 | 21% | ₦0 |
| ₦25,000,000 – ₦50,000,000 | 23% | ₦0 |
| Above ₦50,000,000 | 25% | ₦0 |
| Tax for the year | ₦740,400 | |
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How PAYE is worked out from 2026
- Add up a year of gross pay: basic, housing, transport and other cash allowances.
- Take off reliefs: 8% pension on basic, housing and transport; NHF and NHIS where they apply; life insurance, mortgage interest on your own home, and rent relief (20% of rent paid, up to ₦500,000).
- What is left is chargeable income. Tax it band by band: 0% on the first ₦800,000, then 15%, 18%, 21%, 23% and 25%.
- Divide the year's tax by 12 for monthly PAYE.
Worked example: ₦500,000 a month
Basic ₦250,000, housing ₦150,000 and transport ₦100,000 a month is ₦6,000,000 a year. Pension takes off ₦480,000. Rent of ₦1,200,000 a year gives rent relief of ₦240,000. Chargeable income is ₦5,280,000.
Tax is ₦330,000 on the 15% band plus ₦410,400 on the 18% band, so ₦740,400 for the year, or ₦61,700 a month. Take-home pay after PAYE and pension is ₦398,300 a month.
What changed from 2025
- CRA (₦200,000 plus 20% of gross) is gone.
- The first ₦800,000 of chargeable income is now tax-free.
- The top rate rose to 25%, but only on income above ₦50 million.
- Tenants get a new rent relief, so keep your tenancy agreement and rent receipts.
Questions people ask
What are the PAYE tax bands in Nigeria for 2026?
Under the Nigeria Tax Act 2025, the first ₦800,000 of chargeable income a year is taxed at 0%. 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 everything above ₦50 million at 25%.
Is the Consolidated Relief Allowance (CRA) still used?
No. CRA was removed from 1 January 2026. In its place, the first ₦800,000 is taxed at 0% and employees who pay rent can claim rent relief of 20% of the rent they pay, up to ₦500,000 a year.
Which deductions reduce my PAYE?
Your 8% pension contribution, NHF where it is deducted, NHIS you pay, life insurance or deferred annuity premiums for you or your spouse, interest on a mortgage for the home you live in, and rent relief. Keep receipts or your tenancy agreement, because your employer or tax office may ask for proof.
Do I pay PAYE if I earn the minimum wage?
On the 2026 bands, someone earning ₦70,000 a month pays no PAYE once pension is deducted, because their chargeable income stays under the ₦800,000 tax-free band.
Is this calculator official?
No. It follows the published bands and reliefs, but it is an estimate. Your state tax office (for example LIRS in Lagos or FCT-IRS in Abuja) has the final word, and treatment of NHF and NHIS can depend on how your employer runs payroll.
Based on the Nigeria Tax Act 2025 as summarised by KPMG. Last checked October 2026.
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