Work out your take-home pay under the Nigeria Tax Act 2025, which replaced the old PAYE rules on 1 January 2026. Enter your gross salary to see your income tax, pension, NHF and what lands in your account 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%).
How take-home pay is worked out in 2026
- Start with your gross pay for the year.
- Take off your reliefs: your 8% pension contribution, NHF if you pay it (2.5% of basic pay), rent relief (20% of the rent you pay, up to ₦500,000), and other allowed items such as NHIS contributions, life insurance premiums and mortgage interest on the home you live in. What is left is your chargeable income.
- Apply the tax bands to your chargeable income.
- Take-home pay is gross pay minus tax, pension and NHF.
2026 income tax bands
| Chargeable income in a year | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 (up to ₦3 million) | 15% |
| Next ₦9,000,000 (up to ₦12 million) | 18% |
| Next ₦13,000,000 (up to ₦25 million) | 21% |
| Next ₦25,000,000 (up to ₦50 million) | 23% |
| Above ₦50 million | 25% |
The old Consolidated Relief Allowance (CRA) no longer exists. The 0% band on the first ₦800,000 and rent relief take its place.
Frequently Asked Questions
How much tax do I pay on ₦100,000 a month?
With 8% pension and no other reliefs, ₦3,800 a month. Your chargeable income is ₦1,104,000 a year: the first ₦800,000 is tax-free and the remaining ₦304,000 is taxed at 15%, which is ₦45,600 a year.
Do minimum wage earners pay tax in 2026?
No. On ₦70,000 a month, chargeable income after the 8% pension is ₦772,800 a year, which is inside the tax-free first ₦800,000.
How does rent relief work?
You can deduct 20% of the rent you pay in a year, up to ₦500,000. On ₦1.2 million rent the relief is ₦240,000. Give your employer your tenancy agreement and receipts so they can apply it through payroll.
Is pension taken from my gross pay?
Your 8% pension is worked out on basic pay, housing and transport allowance together. If your payslip has other allowances, open “More options” in the calculator and enter the pay your pension is based on.
Do I have to pay NHF?
The National Housing Fund deduction is 2.5% of basic pay. Tick it in the calculator if it appears on your payslip.
