Free tool · 2026 Tax Act rates
Nigeria PAYE Calculator
Calculate monthly PAYE and take-home pay under the new Nigeria Tax Act 2025 rates — ₦800,000 tax-free, then 15%–25%, with pension and NHF handled correctly.
Monthly salary breakdown (₦)
Uses the Nigeria Tax Act 2025 rates (effective January 2026): first ₦800,000 of annual taxable income is tax-free, then 15%–25% progressively. Pension and NHF are deducted before tax.
What this free tool can't do
This exact calculation, for every employee, every month — with payslips generated and emailed automatically.
Run payroll automaticallyPer-state PAYE schedules generated ready for filing — one schedule per state your employees live in.
Get my filing schedulesPension and NHF computed per person and posted straight into your books — salaries, deductions, and remittances all accounted for.
Put payroll in my books
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Frequently asked questions
What are the new PAYE tax rates in Nigeria for 2026?
Under the Nigeria Tax Act 2025 (effective January 2026), the first ₦800,000 of annual taxable income is tax-free. Income above that is taxed progressively: 15% up to ₦3 million, 18% up to ₦12 million, 21% up to ₦25 million, 23% up to ₦50 million, and 25% above ₦50 million. These replace the old 7%–24% bands and the Consolidated Relief Allowance.
Who is exempt from PAYE in Nigeria?
Employees earning the national minimum wage (₦70,000 per month) or less are exempt from PAYE entirely. In addition, the first ₦800,000 of annual taxable income is taxed at 0% for everyone.
What deductions reduce my taxable income before PAYE?
Statutory contributions are deducted before tax: pension (8% of basic + housing + transport under the Pension Reform Act), National Housing Fund (2.5% of basic salary — optional for private-sector workers), NHIS contributions, and qualifying life insurance premiums.
When must employers remit PAYE?
Employers deduct PAYE from salaries and remit it to the tax authority of each employee's state of residence by the 10th of the following month, with an annual return filed in January. Employees in different states mean separate schedules per state.
Does this calculator use the Consolidated Relief Allowance (CRA)?
No — the CRA was abolished by the Nigeria Tax Act 2025. It has been replaced by the ₦800,000 tax-free first band, which this calculator applies automatically.
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