Important law change:
The Nigeria Tax Act 2025 (NTA), signed June 26 2025 and effective January 1, 2026, completely replaced the old PAYE system. The Consolidated Relief Allowance (CRA) is abolished. New bands apply — this calculator uses the correct NTA 2025 rates.
Enter Your Salary Details
Gross salary is required; all other fields have sensible defaults
Required
If paid monthly, multiply by 12. E.g. ₦300,000/month = ₦3,600,000/year
Rent Relief
Relief = 20% of rent, capped at ₦500,000
default 8%
% of gross
default 2.5%
Frequently Asked Questions
Everything you need to know — answered clearly.
Under the Nigeria Tax Act 2025 (effective January 1, 2026), PAYE is charged progressively: 0% on the first ₦800,000 of annual chargeable income, 15% on the next ₦2.2M (up to ₦3M), 18% up to ₦12M, 21% up to ₦25M, 23% up to ₦50M, and 25% above ₦50M.
The NTA 2025 abolished the CRA. It is replaced by a Rent Relief — the lower of 20% of actual rent paid or ₦500,000 per year. If you own your home you get no rent relief.
All employees earning at or below ₦800,000 annual chargeable income pay zero PAYE tax under NTA 2025. This covers everyone earning at or below the national minimum wage of ₦70,000/month.
Under the Pension Reform Act, employees contribute a minimum of 8% of their monthly emolument to their Pension Fund Administrator (PFA). Employers contribute at least 10%.
The National Housing Fund (NHF) is a mandatory 2.5% contribution of an employee's monthly basic salary, remitted to the Federal Mortgage Bank of Nigeria.
Chargeable Income = Gross Annual Salary − Pension − NHF − Rent Relief (lower of 20% of rent or ₦500,000 cap). PAYE bands then apply to this figure.