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Monthly PAYE Tax Calculator Nigeria (2026 Tax Act)

Enter a monthly or annual gross salary and see PAYE, pension and take-home pay under the bands that took effect on 1 January 2026, with rent relief applied the way payroll does it.

The full package before any deduction.

Rent relief is 20% of this, capped at ₦500,000. Enter 0 if you pay no rent.

% of gross

Pension is charged on these three, not on total pay. Most packages sit near 80%.

Monthly take-home pay

₦404,860

₦63,140 PAYE and ₦32,000 pension deducted · 12.6% effective rate · ₦4,858,320 a year

  • Take-home₦404,86081%
  • PAYE₦63,14012.6%
  • Pension₦32,0006.4%
Gross annual income
₦6,000,000
Less pension (8%)
(₦384,000)
Less rent relief
(₦240,000)
Chargeable income
₦5,376,000
Annual PAYE
₦757,680
Monthly PAYE
₦63,140

How the bands apply

BandTaxedRateTax
First ₦800,000₦800,0000%₦0
Next ₦2,200,000₦2,200,00015%₦330,000
Next ₦9,000,000₦2,376,00018%₦427,680

Want the full picture? Read the Nigeria Tax Act 2025 guide with worked examples and the old-versus-new table.

Running payroll for staff?

Get the 2026 PAYE bands, the rent relief rule and a monthly remittance checklist in one email.

How it works

  1. 01

    Enter monthly gross salary

    The full package before any deduction.

  2. 02

    Enter annual rent

    Rent relief is 20% of rent paid, capped at ₦500,000. Enter 0 if you do not pay rent.

  3. 03

    Check the pension basis

    Pension is 8% of basic, housing and transport. Most packages put those near 80% of gross. Adjust if yours differs.

  4. 04

    Read take-home and the band table

    Monthly PAYE, pension and net pay, plus how much falls in each band.

What makes it different

2026 bands, not 2011

0% on the first ₦800,000 then 15% to 25%. Payroll templates built before 2026 are deducting the wrong amount.

Minimum wage exemption

Anyone at or below ₦70,000 a month is outside PAYE entirely under the 2025 Act. The calculator applies it.

Rent relief, correctly

The CRA is gone. Rent relief is the lower of 20% of rent or ₦500,000 and needs evidence.

Questions people ask

What are the PAYE rates in Nigeria for 2026?
0% on the first ₦800,000 of annual chargeable income, then 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% above ₦50,000,000. Bands are cumulative.
How is chargeable income worked out?
Gross annual pay, less pension at 8% of basic, housing and transport, less rent relief of the lower of 20% of rent paid or ₦500,000. NHF, NHIS and life assurance are also deductible with documentation.
What happened to the Consolidated Relief Allowance?
It was abolished by the Nigeria Tax Act 2025 and replaced with rent relief, which is capped at ₦500,000 and only applies if you actually pay rent.
Do I pay tax on the minimum wage?
No. Anyone earning at or below the ₦70,000 a month national minimum wage is outside personal income tax entirely.
Why does it ask for basic, housing and transport?
Pension is charged on those three components, not total pay. Most Nigerian packages put them near 80% of gross, but it varies and it changes the answer.

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