PAYE & Salary Calculator Nigeria 2026
Work out your PAYE tax and take-home pay under the new 2026 tax bands. Includes pension, NHF, rent relief and the ₦800,000 tax-free allowance.
Reliefs and deductions
Results are estimates for planning. Confirm final figures with your accountant or the Nigeria Revenue Service (NRS). Everything runs in your browser and nothing you enter is stored by us.
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What This PAYE Calculator Shows
- Your monthly and yearly PAYE tax under the Nigeria Tax Act 2025 bands
- Your monthly take-home pay after tax, pension and NHF
- Rent relief of 20% of your annual rent, up to ₦500,000
- Pension (8%), NHF (2.5%), health insurance, life insurance and mortgage interest deductions
- A band-by-band breakdown so you can check the figures
- Your effective tax rate, compared with your gross pay
The 2026 PAYE Tax Bands
First ₦800,000: 0%. Next ₦2.2 million: 15%. Next ₦9 million: 18%. Next ₦13 million: 21%. Next ₦25 million: 23%. Above ₦50 million: 25%. These apply to taxable income after reliefs, from 1 January 2026.
What Changed From the Old Rules
The Consolidated Relief Allowance (CRA) has been replaced by rent relief, which is 20% of the rent you pay, capped at ₦500,000 a year. Income at or below the national minimum wage is exempt from PAYE, and most low and middle earners now pay less tax.
Frequently Asked Questions
Start with your gross yearly income, subtract allowed deductions such as pension, NHF, insurance premiums and rent relief, then apply the tax bands to what is left. The first ₦800,000 of taxable income is taxed at 0%.
No. Under the Nigeria Tax Act 2025 the CRA no longer applies. It has been replaced by rent relief of 20% of annual rent paid, up to ₦500,000.
Declare your rent to your employer or tax authority with proof such as a tenancy agreement or rent receipt. The relief is 20% of the rent you pay each year, capped at ₦500,000.
Yes. Your 8% employee pension contribution under the Pension Reform Act is deducted before tax, which lowers your taxable income.
Employees whose gross income is at or below the national minimum wage of ₦70,000 a month (₦840,000 a year) pay no PAYE.
Yes, as a quick check. For a full team, payroll software calculates PAYE, pension and payslips for every employee each month and keeps records for filing.
Run Payroll Without the Spreadsheet Headache
Lifehampers builds HR and payroll systems that calculate PAYE, pension and NHF for every employee and produce payslips automatically.