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PAYE / Salary Tax Calculator

Estimate your take-home pay under Nigeria’s 2026 tax law (Nigeria Tax Act 2025)

Salary is:

Net take-home (monthly)

₦394,700

₦4,736,400 / year

Gross salary₦6,000,000Pension (8%)₦480,000Chargeable income₦5,520,000Total PAYE tax₦783,600Effective tax rate13.1%

Tax band breakdown

First ₦800,000 @ 0%₦0
Next ₦2,200,000 @ 15%₦330,000
Next ₦9,000,000 @ 18%₦453,600

Estimates only, based on the Nigeria Tax Act 2025 (effective 1 January 2026). Actual payroll deductions may vary by employer policy and other reliefs not captured here — confirm with your HR/payroll team or a tax professional.

How PAYE Works Under the Nigeria Tax Act 2025

The Nigeria Tax Act 2025 took effect on 1 January 2026 and replaced the old Personal Income Tax Act (PITA) tax bands. Annual chargeable income is now taxed progressively: 0% on the first ₦800,000, 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% on income above ₦50 million a year.

The old Consolidated Relief Allowance (CRA) has been abolished and replaced with a rent relief of 20% of annual rent paid, capped at ₦500,000. Pension (8%), NHF (2.5%, optional for private-sector staff) and NHIS (5%, where your employer runs a scheme) are still deducted from your salary before tax is calculated. Employees earning at or below the national minimum wage (₦70,000/month) pay no PAYE at all.

This calculator estimates your net monthly and annual take-home pay based on these rules — use it to sanity-check your payslip or plan a new salary offer.

For the full picture of what changed and who wins or loses under the new law, read our guide: Nigeria’s New Tax Law 2026: How the Nigeria Tax Act Changes Your Salary.