Nigeria PAYE Calculator 2026
Enter a monthly gross salary to see PAYE under Nigeria's 2026 progressive bands (0% to 25%, no Consolidated Relief Allowance), after deducting pension and any other reliefs you add. Employees earning up to 840,000 a year are fully exempt.
Estimate only. Uses the 2026 progressive PAYE bands (0% up to ₦800,000, rising to 25% above ₦50,000,000) under the Nigeria Tax Act 2025, with no Consolidated Relief Allowance. Employees earning ₦840,000 a year (₦70,000/month) or less are fully exempt.
- Effective rate
- 11.56%
- Pension deducted
- ₦336,000.00
- NHF deducted
- ₦0.00
- Rent relief
- ₦0.00
- NHIS
- ₦0.00
- Other reliefs
- ₦0.00
- Chargeable income (annual)
- ₦3,864,000.00
- Annual gross
- ₦4,200,000.00
This is an estimate for planning purposes, not a filing document. Actual PAYE depends on your specific reliefs and employer's payroll setup. For exact payroll runs with your own pay periods, exemptions and payslip PDFs, use KapexFlow's payroll.
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Start freeFrequently asked questions
- How is PAYE calculated in Nigeria for 2026?
- Under the Nigeria Tax Act 2025, effective 1 January 2026, PAYE is calculated on annual chargeable income using progressive bands: 0% up to 800,000, then 15%, 18%, 21%, 23% and 25% on each slice above that, up to 25% on income over 50,000,000. Chargeable income is gross salary minus eligible deductions such as pension, NHF, rent relief, NHIS and other reliefs. There's no Consolidated Relief Allowance (CRA) in this method, it was removed under the new Act.
- What deductions does this calculator apply?
- By default it deducts an 8% employee pension contribution from gross salary. You can also add National Housing Fund (NHF, 2.5%), annual rent paid (rent relief is 20% of rent, capped at 500,000 a year), NHIS employee contributions, and any other eligible deductions in the advanced section. Each of these reduces chargeable income before the bands are applied.
- Is there a minimum-wage exemption?
- Yes. Employees earning 840,000 or less a year (70,000 or less a month) pay no PAYE at all under the 2026 rules. This exemption is separate from, and applied before, the 0% band on the first 800,000 of chargeable income.
- Is pension the same thing as PAYE?
- No. PAYE is income tax withheld and remitted to the tax authority. Pension is a separate employee contribution to a retirement savings account, and it's also one of the deductions that reduces the income PAYE is calculated on. This calculator shows both side by side.
- Do I need to file this with FIRS or my state IRS?
- No, this page just gives you an estimate. It doesn't file anything or submit a return anywhere. Actual PAYE remittance is a payroll process run through your state's tax authority, and your actual PAYE depends on your specific reliefs and your employer's payroll setup.
- Can I use this for actual payroll runs?
- Use it for quick planning, not as your payroll system of record. For real pay periods, employee-level exemptions, and payslip PDFs, KapexFlow's payroll module runs the same underlying bracket calculation against your company's own settings.