Nigeria PAYE & Take-Home Pay Calculator 2026
Free Nigeria PAYE and salary calculator for 2026. See your tax, take-home pay and how the Nigeria Tax Act 2025 compares with the old law. Includes rent relief, pension and NHF.
Enter your gross monthly or annual salary to see your PAYE income tax, pension, NHF and take-home pay under the Nigeria Tax Act 2025, in force from 1 January 2026, and how much more or less you keep than under the old Personal Income Tax Act.
What changed in Nigeria's income tax in 2026? The Nigeria Tax Act 2025 took effect on 1 January 2026. The Consolidated Relief Allowance was removed, the first ₦800,000 of chargeable income a year is now tax-free, and new bands of 15%, 18%, 21%, 23% and 25% apply above that. A rent relief of 20% of annual rent (up to ₦500,000) was introduced.
How is PAYE calculated under the new law? Start with your annual gross pay, subtract your pension (8%), National Housing Fund and health insurance contributions and your rent relief. Tax the rest: 0% on the first ₦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. Divide by 12 for the monthly PAYE.
Who pays no income tax in 2026? Anyone whose chargeable income (after pension, NHF, health insurance and rent relief) is ₦800,000 a year or less, which is roughly a gross salary of up to about ₦72,000 a month for someone contributing to a pension.
How do I claim rent relief? Rent relief is 20% of the rent you pay each year, capped at ₦500,000. Give your employer (or the tax authority, if you file yourself) evidence of the rent you pay, such as your tenancy agreement and receipts.
Is pension deducted before tax? Yes. Your 8% employee pension contribution under the Pension Reform Act 2014 is deducted before tax is worked out, as are NHF and NHIS contributions.
Is this calculator accurate? It follows the published rates and reliefs and is a good estimate for salaried employees. Your actual PAYE can differ if you have other income, allowances that are taxed differently, or other reliefs. For your own position, speak to a tax adviser or your state's Internal Revenue Service.
- First ₦800,000 of chargeable income a year: 0%
- Next ₦2,200,000: 15%
- Next ₦9,000,000: 18%
- Next ₦13,000,000: 21%
- Next ₦25,000,000: 23%
- Above ₦50,000,000: 25%
- Rent relief: 20% of annual rent, up to ₦500,000
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