About the Nigeria PAYE Calculator
This Nigeria PAYE calculator estimates the income tax withheld from a salary and the take-home pay left after the employee pension contribution, National Housing Fund (NHF) deduction and any health insurance contribution. Enter your monthly basic salary, housing, transport and other allowances plus the annual rent you pay.
It applies the Nigeria Tax Act 2025, which took effect on 1 January 2026: the first ₦800,000 of taxable income is tax-free, then 15% on the next ₦2.2 million, 18% on the next ₦9 million, 21% on the next ₦13 million, 23% on the next ₦25 million and 25% above ₦50 million. The old consolidated relief allowance (CRA) is gone; instead you can deduct rent relief of 20% of annual rent paid, capped at ₦500,000, alongside pension, NHF, NHIS and life assurance premiums. Employees earning the national minimum wage (₦70,000 a month) or less pay no PAYE.
It is built for employees checking a 2026 payslip, HR teams modelling the new regime and anyone comparing offers. Pension is modelled at the standard 8% employee rate on basic, housing and transport, and NHF at 2.5% of basic salary.
With the default inputs, the net salary per month is ₦475,950.00. Change any value above to recalculate instantly.
How to use the nigeria paye calculator
- 1Enter your monthly basic salary, housing, transport and other allowances.
- 2Enter the rent you pay per year to claim rent relief.
- 3Keep pension and NHF on if they are deducted from your pay.
- 4Add any NHIS contribution or life assurance premiums.
- 5Read your monthly net salary and PAYE, then check the band table.
Formula and method
Annual gross pay is the sum of basic salary and all allowances × 12. The Nigeria Tax Act 2025 abolished the consolidated relief allowance, so taxable income is gross pay minus specific deductions only: pension contributions to a PFA (8% of basic, housing and transport under the Pension Reform Act), NHF contributions (2.5% of basic), NHIS contributions, life assurance premiums and rent relief of 20% of annual rent, up to ₦500,000.
Tax is charged progressively: 0% on the first ₦800,000, 15% on the next ₦2,200,000, 18% on the next ₦9,000,000, 21% on the next ₦13,000,000, 23% on the next ₦25,000,000 and 25% on everything above ₦50,000,000. Monthly PAYE is one-twelfth of the annual figure. Workers paid the ₦70,000 minimum wage or less are exempt.
- Gross
- 12 × (basic + housing + transport + other allowances)
- Pension
- 8% × 12 × (basic + housing + transport)
- NHF
- 2.5% × 12 × basic
- Bands
- Nigeria Tax Act 2025 progressive rates (0%–25%)
Worked examples
₦600,000 a month with ₦1.8m rent
Gross pay is ₦7.2m a year. Pension (₦480,000), NHF (₦90,000) and rent relief (20% of ₦1.8m = ₦360,000) leave ₦6.27m taxable. Tax is 15% of ₦2.2m plus 18% of ₦3.27m = ₦918,600, or ₦76,550 a month, leaving ₦475,950 net.
₦150,000 a month, ₦600,000 rent
Annual pay of ₦1.8m less pension (₦144,000), NHF (₦24,000) and ₦120,000 rent relief gives ₦1,512,000 taxable. Only the ₦712,000 above the tax-free ₦800,000 is taxed at 15%, so PAYE is ₦8,900 a month.
₦5m a month senior salary
Rent relief is capped at ₦500,000. After ₦4.08m pension and ₦750,000 NHF, ₦54.67m is taxable and the top ₦4.67m falls in the 25% band. Annual PAYE is ₦11,597,500 and monthly take-home pay about ₦3.63m.
Frequently asked questions
What are the new PAYE tax bands in Nigeria from 2026?+
Under the Nigeria Tax Act 2025, annual taxable income is taxed at 0% up to ₦800,000, 15% on the next ₦2.2m, 18% on the next ₦9m, 21% on the next ₦13m, 23% on the next ₦25m and 25% above ₦50m.
Is the consolidated relief allowance (CRA) still available?+
No. The CRA (₦200,000 or 1% of gross, plus 20% of gross) was removed from 1 January 2026. It was replaced by rent relief of 20% of annual rent paid, capped at ₦500,000, while pension, NHF, NHIS and life assurance remain deductible.
Who is exempt from PAYE in Nigeria?+
Employees earning the national minimum wage of ₦70,000 a month or less pay no PAYE. In addition, the 0% band means roughly ₦1.2 million of annual gross pay becomes tax-free once typical deductions are taken into account.
How is pension calculated on my salary?+
Under the Pension Reform Act 2014, the employee contributes at least 8% and the employer at least 10% of monthly emoluments, defined as basic salary, housing and transport allowances. The employee share is deducted from pay and is tax-deductible.
What is the National Housing Fund deduction?+
NHF is a 2.5% contribution on basic salary, paid into the Federal Mortgage Bank’s housing fund. It is deductible for PAYE. Some private employers do not run NHF, so switch it off if it does not appear on your payslip.
Do I need proof to claim rent relief?+
Yes. You must declare the rent you pay accurately and keep evidence such as a tenancy agreement and receipts, which your employer or the tax authority may request. Overstating rent to reduce tax can attract penalties.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.