₦1,000,000 Salary After Tax in Nigeria (2026): ₦148,100 PAYE, ₦80,000 Pension, ₦771,900 Take-Home

A ₦1 million monthly salary puts you among the highest-paid employees in Nigeria: senior managers in banks, oil and gas and telecoms, experienced software engineers, consultants, doctors in private practice and many people paid in naira by foreign employers. Since 1 January 2026, PAYE on that pay has been worked out under the Nigeria Tax Act 2025, which taxes the first ₦800,000 a year at 0% and replaced the old Consolidated Relief Allowance.

At this level, three things matter more than they do on lower salaries: the 18% band, the 21% band that starts just above ₦1 million, and how your pension is calculated. Here is the full picture.

₦1,000,000 Salary After Tax: The Full Breakdown

Item	Monthly	Yearly
Gross salary	₦1,000,000	₦12,000,000
Pension (8% employee contribution)	−₦80,000	−₦960,000
Chargeable income	₦920,000	₦11,040,000
Taxed at 0% (first ₦800,000 a year)	₦66,667	₦800,000
Taxed at 15% (next ₦2.2 million a year)	₦183,333	₦2,200,000
Taxed at 18% (the rest)	₦670,000	₦8,040,000
PAYE tax	−₦148,100	−₦1,777,200
Take-home pay	₦771,900	₦9,262,800

How the ₦148,100 Is Worked Out

1. Yearly gross pay: ₦1,000,000 × 12 = ₦12,000,000.
2. Take off pension: 8% of ₦12,000,000 is ₦960,000, leaving a chargeable income of ₦11,040,000.
3. First band: the first ₦800,000 is taxed at 0%.
4. Second band: the next ₦2,200,000 is taxed at 15% = ₦330,000.
5. Third band: the remaining ₦8,040,000 is taxed at 18% = ₦1,447,200.
6. Yearly tax: ₦330,000 + ₦1,447,200 = ₦1,777,200.
7. Monthly PAYE: ₦1,777,200 ÷ 12 = ₦148,100.

Take-home pay is ₦1,000,000 − ₦80,000 − ₦148,100 = ₦771,900.

How close you are to the 21% band

The 18% band covers chargeable income from ₦3 million to ₦12 million a year. Your chargeable income is ₦11.04 million, so you have ₦960,000 a year (₦80,000 a month) of room before any of your income is taxed at 21%. With 8% pension on the full salary, the 21% band starts at a gross salary of about ₦1,087,000 a month.

Old Rules vs New Rules at ₦1,000,000

₦1,000,000 a month	2025 (old PITA rules)	2026 (Nigeria Tax Act 2025)
Reliefs	Pension + CRA of ₦2,600,000 a year	Pension; first ₦800,000 taxed at 0%
Chargeable income (yearly)	₦8,440,000	₦11,040,000
Top rate reached	24%	18%
Tax for the year	₦1,817,600	₦1,777,200
Monthly PAYE, no rent relief	₦151,466.67	₦148,100
Difference	New law saves ₦3,366.67 a month (₦40,400 a year)
Monthly PAYE with ₦2.5m rent relief	₦151,466.67 (no rent relief existed)	₦140,600, saving ₦10,866.67 a month

The old CRA was more generous at this salary: ₦2.6 million a year against the new tax-free ₦800,000. But under the old rules, everything above ₦3.2 million of chargeable income was taxed at 24%. Under the new law, a ₦1 million earner never goes above 18%, and the lower rate more than makes up for the smaller relief.

That advantage does not last forever. Our calculations, with 8% pension and no other reliefs, show the new law becomes more expensive than the old rules from about ₦1.28 million a month. At ₦1.5 million a month, the new law costs about ₦4,433 a month more, unless you claim rent relief.

What Changes Your Number

Your situation (₦1,000,000 gross)	Monthly tax	Monthly take-home
Standard: 8% pension on the full ₦1,000,000	₦148,100	₦771,900
You pay ₦1.2m a year rent and claim rent relief	₦144,500	₦775,500
You pay ₦1.8m a year rent and claim rent relief	₦142,700	₦777,300
Your rent is ₦2.5m a year or more (maximum relief of ₦500,000)	₦140,600	₦779,400
Your employer deducts NHF on a ₦500,000 basic salary (₦12,500)	₦145,850	₦761,650
Pension is on basic + housing + transport of ₦700,000 only (₦56,000)	₦152,420	₦791,580
Your employer runs no pension scheme	₦162,500	₦837,500

Rent relief at ₦1,000,000

You can deduct 20% of the rent you pay in a year, up to ₦500,000, before tax is worked out. At ₦1 million a month, all of that relief comes off income taxed at 18%:

• ₦1.2 million rent: relief of ₦240,000 saves ₦43,200 a year (₦3,600 a month).
• ₦1.8 million rent: relief of ₦360,000 saves ₦64,800 a year (₦5,400 a month).
• ₦2.5 million rent or more: the maximum relief of ₦500,000 saves ₦90,000 a year (₦7,500 a month).

If you pay ₦2.5 million a year or more in rent, the full ₦7,500 a month is yours to claim. It only shows on your payslip if HR knows about it. Tell them what you pay and keep your tenancy agreement and rent receipts. If you own your home or live in company accommodation, there is no rent relief to claim.

Pensionable pay

Under the Pension Reform Act 2014, the 8% is worked out on basic salary, housing and transport, not your full gross. Senior packages often include large utility, leave, entertainment or car allowances, so your real pension deduction may be well below ₦80,000. A smaller pension deduction means more tax but more cash in hand: on a ₦700,000 pensionable base, you pay ₦4,320 more tax but take home ₦19,680 more each month.

Your employer must add at least 10% of the same amount to your Retirement Savings Account. On a full ₦1 million base, that is another ₦100,000 a month that does not come out of your pay.

NHF

If your employer deducts the National Housing Fund contribution of 2.5% of basic salary, that amount is deductible too. On a ₦500,000 basic it is ₦12,500 a month, which cuts your PAYE by ₦2,250.

Other reliefs you can claim

The Nigeria Tax Act 2025 also lets you deduct a few other payments before tax is worked out. At ₦1 million a month, each naira you deduct saves 18 kobo:

• Life insurance or deferred annuity premiums paid for yourself or your spouse. A ₦600,000 yearly premium saves ₦108,000 a year (₦9,000 a month).
• National Health Insurance contributions deducted from your pay.
• Interest on a loan to build or buy the house you live in. On a large mortgage, this relief can be substantial.

Give HR the documents, such as your policy schedule or the bank’s interest statement, so payroll can apply them.

Salaries Close to ₦1,000,000

Gross monthly salary	2026 PAYE	2026 take-home	2025 PAYE (old rules)
₦800,000	₦114,980	₦621,020	₦116,907
₦900,000	₦131,540	₦696,460	₦134,187
₦1,000,000	₦148,100	₦771,900	₦151,467
₦1,100,000	₦165,020	₦846,980	₦168,747
₦1,200,000	₦184,340	₦919,660	₦186,027
₦1,500,000	₦242,300	₦1,137,700	₦237,867

Below about ₦1,087,000 a month, every extra ₦10,000 of gross pay adds ₦1,656 of PAYE and ₦800 of pension, so you keep ₦7,544 of it. Above that line, the 21% band applies and you keep ₦7,268. A raise from ₦1 million to ₦1.1 million adds about ₦75,080 to your take-home, not ₦100,000.

Bonuses and the 13th Month

A bonus or 13th-month salary is added to your income for the year. At ₦1 million a month your yearly chargeable income is ₦11.04 million, so only the next ₦960,000 of extra income is taxed at 18%; anything above that is taxed at 21%.

A ₦1,000,000 December bonus with no pension deduction would cost ₦181,200 in tax (₦172,800 on the first ₦960,000 and ₦8,400 on the last ₦40,000), leaving you ₦818,800.

What ₦771,900 Take-Home Looks Like in a Year

Item	Per year
Gross salary	₦12,000,000
Your pension (8%)	₦960,000
Employer pension (at least 10%)	₦1,200,000
PAYE tax	₦1,777,200
Take-home pay	₦9,262,800
Total going into your RSA	at least ₦2,160,000

Work Out Your Own Take-Home Pay

Enter your own salary, rent, NHF and allowances below. The calculator uses the 2026 rules and shows the old-rules figure for comparison.

Check Your Payslip

• Tax above ₦148,100 on ₦1,000,000? If pension is on the full gross and you have no other income, ask HR how it was worked out. A smaller pensionable base is the most common reason.
• Paying rent but tax unchanged? Rent relief has not been applied. Give HR your rent details and documents.
• Still a “CRA” line in 2026? Your employer’s payroll may still be using the old rules. Ask HR to confirm they are using the Nigeria Tax Act 2025 bands.
• Pension deducted but missing from your RSA? Compare your payslip with your statement from your Pension Fund Administrator.
• Other income? Rent from property, consulting fees or side income are added to your salary for the year. You may need to file your own return; see our guide to filing tax as a self-employed Nigerian.

For the rules behind these numbers, see our explainer on Nigeria’s new tax law and your salary, and compare lower salaries in our breakdowns for ₦300,000 and ₦500,000.

Frequently Asked Questions

How much tax is paid on ₦1 million salary in Nigeria in 2026?

₦148,100 a month (₦1,777,200 a year), with 8% pension on the full salary and no other reliefs.

What is ₦1 million a month after tax?

₦771,900 a month, or ₦9,262,800 a year, after ₦148,100 tax and ₦80,000 pension.

Do I pay less tax on ₦1 million under the new law?

Yes: ₦3,366.67 a month less than under the old rules without reliefs, and ₦10,866.67 less if you claim the maximum rent relief.

What tax band is ₦1 million salary in?

After pension, ₦800,000 a year is taxed at 0%, ₦2.2 million at 15% and the remaining ₦8.04 million at 18%. None of it reaches the 21% band.

What is ₦12 million a year after tax in Nigeria?

With 8% pension and no other reliefs, ₦9,262,800 a year, or ₦771,900 a month.

At what salary does the new tax law cost more than the old one?

Our calculations, with 8% pension and no other reliefs, put it at about ₦1.28 million a month. Rent relief can still make the new law cheaper above that level.

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Sources

1. Nigeria Tax Act 2025 – income tax bands (Fourth Schedule) and allowable reliefs including rent relief (section 30), in force from 1 January 2026
2. Personal Income Tax Act (as amended) – Consolidated Relief Allowance and tax bands applying until 31 December 2025
3. Pension Reform Act 2014 – employee (8%) and employer (10%) contributions on basic salary, housing and transport allowances
4. National Housing Fund Act – 2.5% employee contribution on basic salary

Last updated: 1 November 2026 · NaijaSabi Finance Desk. Figures are worked examples for a single source of employment income; your payslip can differ if you have other income, allowances or reliefs. This is general information, not tax advice.