₦250,000 Salary After Tax in Nigeria (2026): ₦24,500 PAYE, ₦20,000 Pension, ₦205,500 Take-Home

₦250,000 a month is a typical salary for mid-level professionals in Nigeria: officers and supervisors in banks, experienced teachers in private schools, nurses, sales leads, engineers a few years into their careers and many remote workers paid in naira. Since 1 January 2026, PAYE on that pay has been worked out under the Nigeria Tax Act 2025, which gives every taxpayer a tax-free first ₦800,000 a year and replaced the old Consolidated Relief Allowance.

₦250,000 is a comfortable place in the new system. You are below the 18% band, so every naira of tax relief you claim saves 15 kobo, and the calculation has only two steps. Here it is in full.

₦250,000 Salary After Tax: The Full Breakdown

Item	Monthly	Yearly
Gross salary	₦250,000	₦3,000,000
Pension (8% employee contribution)	−₦20,000	−₦240,000
Chargeable income	₦230,000	₦2,760,000
Taxed at 0% (first ₦800,000 a year)	₦66,667	₦800,000
Taxed at 15% (the rest)	₦163,333	₦1,960,000
PAYE tax	−₦24,500	−₦294,000
Take-home pay	₦205,500	₦2,466,000

How the ₦24,500 Is Worked Out

1. Yearly gross pay: ₦250,000 × 12 = ₦3,000,000.
2. Take off pension: 8% of ₦3,000,000 is ₦240,000, leaving a chargeable income of ₦2,760,000.
3. First band: the first ₦800,000 is taxed at 0%.
4. Second band: the remaining ₦1,960,000 is taxed at 15% = ₦294,000.
5. Monthly PAYE: ₦294,000 ÷ 12 = ₦24,500.

Take-home pay is ₦250,000 − ₦20,000 − ₦24,500 = ₦205,500. The 15% band covers chargeable income from ₦800,000 to ₦3 million a year. With 8% pension on the full salary, you would only reach the 18% band at a gross salary of about ₦271,700 a month, so a ₦250,000 earner has about ₦21,700 of room before any of their pay is taxed at 18%.

Old Rules vs New Rules at ₦250,000

₦250,000 a month	2025 (old PITA rules)	2026 (Nigeria Tax Act 2025)
Reliefs	Pension + CRA of ₦800,000 a year	Pension; first ₦800,000 taxed at 0%
Chargeable income (yearly)	₦1,960,000	₦2,760,000
Tax for the year	₦299,600	₦294,000
Monthly PAYE, no rent relief	₦24,966.67	₦24,500
Difference	New law saves ₦466.67 a month (₦5,600 a year)
Monthly PAYE with ₦1.2m rent relief	₦24,966.67 (no rent relief existed)	₦21,500, saving ₦3,466.67 a month

At ₦250,000, the old CRA happened to be worth exactly ₦800,000 a year, the same as the new tax-free band. So why is the new law cheaper? Because of the rates. Under the old rules, a ₦250,000 earner paid 19% and 21% on part of their income. Under the new law, nothing is taxed above 15% at this salary.

The new law is not cheaper at every salary. Our calculations, with 8% pension and no other reliefs, show it costs slightly more between about ₦150,000 and ₦215,000 a month (by at most about ₦83) and between about ₦325,000 and ₦532,000 a month (by up to about ₦1,000). ₦250,000 sits in the middle of a range where the new law wins. See our breakdowns for ₦200,000, ₦300,000 and ₦500,000.

What Changes Your Number

Your situation (₦250,000 gross)	Monthly tax	Monthly take-home
Standard: 8% pension on the full ₦250,000	₦24,500	₦205,500
You pay ₦50,000 a month rent (₦600,000 a year) and claim rent relief	₦23,000	₦207,000
You pay ₦75,000 a month rent (₦900,000 a year) and claim rent relief	₦22,250	₦207,750
You pay ₦100,000 a month rent (₦1.2m a year) and claim rent relief	₦21,500	₦208,500
You pay ₦150,000 a month rent (₦1.8m a year) and claim rent relief	₦20,000	₦210,000
Your rent is ₦2.5m a year or more (maximum relief of ₦500,000)	₦18,250	₦211,750
Your employer deducts NHF on a ₦125,000 basic salary (₦3,125)	₦24,031	₦202,844
Pension is on basic + housing + transport of ₦175,000 only (₦14,000)	₦25,400	₦210,600
Your employer runs no pension scheme	₦27,500	₦222,500

Rent relief at ₦250,000

You can deduct 20% of the rent you pay in a year, up to ₦500,000, before tax is worked out. At ₦250,000 all of the relief comes off income taxed at 15%, so every ₦100,000 of relief saves ₦15,000 a year.

• ₦600,000 rent (a self-contain or mini flat in many cities): relief of ₦120,000 saves ₦18,000 a year (₦1,500 a month).
• ₦1.2 million rent: relief of ₦240,000 saves ₦36,000 a year (₦3,000 a month).
• ₦2.5 million rent or more: the maximum relief of ₦500,000 saves ₦75,000 a year (₦6,250 a month).

Rent relief only shows on your payslip if HR knows about it. Tell them what you pay and keep your tenancy agreement and rent receipts, which your employer may ask to see. If you share a flat, claim only the rent you actually pay. If you live in your own house, a family house or staff quarters, there is no rent relief to claim.

Pensionable pay

Under the Pension Reform Act 2014, your 8% is worked out on basic salary, housing and transport, not your full gross. Many ₦250,000 packages include utility, meal or leave allowances, so your pension deduction may be lower than ₦20,000. A smaller pension deduction means slightly more tax but more cash in hand now. Your employer must add at least 10% of the same amount into your Retirement Savings Account; on a full ₦250,000 base, that is another ₦25,000 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 also reduces your taxable income. On a ₦125,000 basic it is ₦3,125 a month, which cuts your PAYE by about ₦469.

Other reliefs you can claim

The Nigeria Tax Act 2025 also lets you deduct a few other payments before tax is worked out. At ₦250,000 a month, each naira you deduct saves 15 kobo:

• Life insurance or deferred annuity premiums paid for yourself or your spouse. A ₦120,000 yearly premium saves ₦18,000 a year (₦1,500 a month).
• National Health Insurance contributions deducted from your pay.
• Interest on a loan to build or buy the house you live in.

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

Salaries Close to ₦250,000

Gross monthly salary	2026 PAYE	2026 take-home	2025 PAYE (old rules)
₦200,000	₦17,600	₦166,400	₦17,527
₦225,000	₦21,050	₦185,950	₦21,187
₦250,000	₦24,500	₦205,500	₦24,967
₦275,000	₦28,040	₦224,960	₦28,747
₦300,000	₦32,180	₦243,820	₦32,527

Below about ₦271,700 a month, every extra ₦10,000 of gross pay adds ₦1,380 of PAYE and ₦800 of pension, so you keep ₦7,820 of it. Above that line you keep ₦7,544. If you are negotiating a raise from ₦250,000 to ₦275,000, expect your take-home to rise by about ₦19,460, not ₦25,000.

Bonuses and the 13th Month

A 13th-month salary or bonus is added to your income for the year. At ₦250,000 a month your yearly chargeable income is ₦2,760,000, so the next ₦240,000 of extra income is still taxed at 15%; anything above that falls into the 18% band. A ₦250,000 December bonus with no pension deduction would cost ₦37,800 in tax (₦36,000 on the first ₦240,000 and ₦1,800 on the rest), leaving you ₦212,200.

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 ₦24,500 on ₦250,000? If you have no other income and pension is on the full gross, 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.
• Pension deducted but missing from your RSA? Compare your payslip with your Retirement Savings Account statement from your Pension Fund Administrator.
• PAYE goes to your state. Salary tax is paid to the tax authority of the state where you live.
• Still taxed under the old rules? If your payslip shows a “CRA” line in 2026, your employer’s payroll may not have been updated. Ask HR to confirm they are using the Nigeria Tax Act 2025 bands.

Frequently Asked Questions

How much tax is paid on ₦250,000 salary in Nigeria in 2026?

₦24,500 a month (₦294,000 a year), with 8% pension on the full salary and no other reliefs.

What is ₦250,000 a month after tax?

₦205,500 a month, or ₦2,466,000 a year, after ₦24,500 tax and ₦20,000 pension.

Do I pay less tax on ₦250,000 under the new law?

Yes: ₦466.67 a month less than under the old rules without any reliefs, and ₦3,466.67 a month less if you claim rent relief on ₦1.2 million rent.

What tax band is ₦250,000 salary in?

The first ₦800,000 of your yearly chargeable income is taxed at 0% and the rest, ₦1.96 million, at 15%. None of it is taxed at 18%.

What is ₦3 million a year after tax in Nigeria?

With 8% pension and no other reliefs, ₦2,466,000 a year, or ₦205,500 a month.

What is the effective tax rate on ₦250,000?

9.8% of gross pay, with pension as the only relief.

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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.