PAYE calculator for Nigeria (2026)
Work out monthly PAYE, pension, NHF and take-home pay under the Nigeria Tax Act 2025, including the ₦800,000 tax-free band and rent relief.
Monthly PAYE
₦61,655
Monthly take-home pay
₦398,095
- Gross salary
- ₦500,000
- Pension (employee)
- − ₦34,000
- NHF
- − ₦6,250
- PAYE
- − ₦61,655
- Take-home pay
- ₦398,095
How the tax was worked out (yearly)
- Annual gross
- ₦6,000,000
- Less pension, NHF and rent relief
- − ₦723,000
- Taxable income
- ₦5,277,000
| Band | Rate | Tax |
|---|---|---|
| First ₦800,000 | 0% | ₦0 |
| ₦800,000 – ₦3,000,000 | 15% | ₦330,000 |
| ₦3,000,000 – ₦12,000,000 | 18% | ₦409,860 |
| ₦12,000,000 – ₦25,000,000 | 21% | ₦0 |
| ₦25,000,000 – ₦50,000,000 | 23% | ₦0 |
| Above ₦50,000,000 | 25% | ₦0 |
| Annual PAYE (12.3% of gross) | ₦739,860 | |
How this calculator works
It applies the Nigeria Tax Act 2025 rules that took effect in January 2026. Employee pension (8% of basic, housing and transport), NHF (2.5% of basic) and rent relief (20% of annual rent, capped at ₦500,000) are deducted from annual gross pay. The remaining taxable income is taxed in bands: the first ₦800,000 at 0%, then 15%, 18%, 21%, 23% and 25%.
The figures use the same calculation 234 Solutions runs for every employee on a real payroll. For a step-by-step explanation with a worked example, read How to calculate PAYE in Nigeria in 2026.
This calculator is a guide, not tax advice. It covers salary income only, and doesn’t include other allowable reliefs such as NHIS or life assurance. Confirm current rates with your State Internal Revenue Service or a tax adviser before running payroll.
Run PAYE for your whole team automatically
234 Solutions calculates PAYE, pension and NHF for every employee each month, issues payslips, and prepares your statutory schedules.