Nigeria PAYE Take-Home Calculator 2026
See your exact take-home under the new Nigeria Tax Act 2025. Compare side-by-side with old 2025 rates and see exactly how much more you keep each month.
🧮 Nigeria PAYE Calculator 2026
Calculate your exact take-home. Compare 2026 new law vs 2025 old law.
Estimates only. Actual deductions depend on your employer’s payroll structure. Consult a tax professional for formal advice.
What Changed with the Nigeria Tax Act 2025?
The Nigeria Tax Act 2025, effective 1 January 2026, is the most significant personal income tax reform in over a decade. The first ₦800,000 annual income (about ₦66,667/month) is now completely tax-free. The national minimum wage of ₦70,000/month and NYSC allawee of ₦77,000/month both pay zero PAYE.
2026 PAYE Tax Bands
| Annual Income | Rate |
|---|---|
| ₦0 – ₦800,000 | 0% (tax-free) |
| ₦800,001 – ₦3,000,000 | 15% |
| ₦3,000,001 – ₦12,000,000 | 18% |
| ₦12,000,001 – ₦25,000,000 | 21% |
| ₦25,000,001 – ₦50,000,000 | 23% |
| Above ₦50,000,000 | 25% |
Deductions That Reduce Your PAYE
- Pension (8%): Mandatory, reduces taxable income directly and builds retirement savings.
- NHF (2.5%): National Housing Fund, capped at ₦200/month.
- Rent Relief: 20% of gross or ₦500,000/year — whichever is lower. Provide tenancy agreement to your employer.
Frequently Asked Questions
What is the minimum salary exempt from PAYE in 2026?▼
The first N800,000/year (N66,667/month) is tax-free. The N70,000 minimum wage and NYSC N77,000 allawee both pay zero PAYE.
Does my employer automatically apply the 2026 rates?▼
Your employer is legally required to apply NTA 2025 rates from January 2026. If your payslip still shows old rates, contact HR immediately.
How do I claim rent relief?▼
Provide a tenancy agreement and rent receipts to your payroll team. Maximum relief is 20% of gross or N500,000/year, whichever is lower.
How much more will I take home under the new law?▼
Most employees earning N100,000-N500,000/month will take home N3,000-N15,000 more per month. Use the calculator above for your exact figure.
Is pension contribution compulsory?▼
Yes, for employers with 3 or more employees under the Pension Reform Act. You contribute 8% and your employer contributes at least 10%.
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