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.
Take-home pay calculator 2026
Nigeria Tax Act 2025 rates, in force since 1 January 2026.
| Monthly | Yearly |
|---|
How your tax was worked out
What it costs your employer
Take-home on common salaries
| Gross a month | Tax a month | Take-home a month |
|---|---|---|
| ₦70,000 | ₦0 | ₦64,400 |
| ₦100,000 | ₦3,800 | ₦88,200 |
| ₦150,000 | ₦10,700 | ₦127,300 |
| ₦250,000 | ₦24,500 | ₦205,500 |
| ₦500,000 | ₦65,300 | ₦394,700 |
| ₦1,000,000 | ₦148,100 | ₦771,900 |
With 8% pension on the full gross pay, no NHF and no rent relief.
An estimate. Your employer's payroll may treat allowances differently. For a formal answer ask your HR team or a tax adviser.
Source: Nigeria Tax Act 2025 (sections 30 and 58, Fourth Schedule); Pension Reform Act 2014; National Housing Fund Act; National Minimum Wage (Amendment) Act 2024. Employer costs: Pension Reform Act 2014 (at least 10%), Employee's Compensation Act 2010 (NSITF, 1%), Industrial Training Fund Act (ITF, 1%).
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 of chargeable income in a year (about ₦66,667 a month) is now tax-free. On the ₦70,000 national minimum wage, chargeable income after the 8% pension is ₦772,800 a year, so no PAYE is due.
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, 2.5% of your basic pay, if your employer deducts it.
- Rent Relief: 20% of the rent you pay in a year, up to a maximum relief of ₦500,000 (Nigeria Tax Act 2025, section 30). Provide your tenancy agreement and rent receipts to your employer.
Frequently Asked Questions
What is the minimum salary exempt from PAYE in 2026?▼
The first N800,000 of chargeable income a year (about N66,667 a month) is tax-free. Someone on the N70,000 minimum wage pays no PAYE, because their chargeable income after pension is N772,800 a year.
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. The relief is 20% of the rent you pay in a year, up to a maximum of N500,000.
How much more will I take home under the new law?▼
It depends on your pay and your rent. With 8% pension and no rent relief, you keep about N1,500 more a month on N100,000, about N350 more on N300,000, and about the same on N500,000. Rent relief increases the saving. 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%.
