₦ NaijaCalc

Take-Home Pay Calculator — Nigeria 2026 Tax Law

Estimate a resident employee’s steady monthly salary under the Nigeria Tax Act 2025. The first ₦800,000 of annual chargeable income is taxed at 0%; minimum-wage employment has a separate exemption. Enter annual rent paid, not the relief: the calculator applies 20%, capped at ₦500,000. Pension uses the earnings base you select; NHF uses your confirmed contribution.

💵  Calculator

₦243,820

per year after tax, pension and NHF: ₦2,925,840

Tax treatment Progressive income-tax bands applied
Annual gross salary ₦3,600,000
Pension (8%, yours to keep) ₦288,000
NHF contribution entered (annual) ₦0
Rent relief claimed ₦0
Chargeable income ₦3,312,000
PAYE tax for the year ₦386,160
Effective tax rate (on gross) 10.7%
Your marginal rate (on the next naira) 18.0%
Monthly PAYE deduction ₦32,180
Monthly take-home ₦243,820
Employer pension (10%, on top) ₦360,000
Gross pay + modelled employer pension (not all employer costs) ₦3,960,000
Input check
How the tax is built, band by band
BandRateIncome in bandTax due
First ₦800,000 0% ₦800,000 ₦0
Next ₦2,200,000 (₦800,001 – ₦3,000,000) 15% ₦2,200,000 ₦330,000
Next ₦9,000,000 (₦3,000,001 – ₦12,000,000) 18% ₦312,000 ₦56,160

Works without JavaScript — the figures above are a worked example using the default values.

Before you rely on this

  • Scope: one resident employee’s steady salary for 12 months. Bonuses, multiple jobs, other income, benefits in kind, part-year employment, special exemptions and additional eligible deductions can change the result. Do not use this as a complete tax return.
  • Minimum-wage exemption applies to this employment-income scenario at ₦70,000/month or less, even without pension. The ₦800,000 band is annual chargeable income, not a universal gross-salary threshold.
  • Pension defaults to 8% employee and 10% employer on the whole gross as an example. Use the earnings base agreed in your contract, normally not less than basic + housing + transport. Higher contributions and employer-paid arrangements require a separate calculation.
  • NHF is a confirmed amount input: verify participation and the contribution base with payroll/FMBN. Other reliefs under section 30 (such as qualifying health contributions, mortgage interest and life insurance) are not modelled. Rent relief reduces taxable income, not your payroll cash a second time.

How this is calculated: Nigeria Tax Act 2025, sections 30–32, 58, 163(1)(t) and Fourth Schedule (LIRS gazetted copy); PenCom CPS guidance. Shared arithmetic has regression and browser tests. · Data as of 2026-09-28
Reviewed 28 September 2026. Defaults are explicit examples, not guaranteed payroll results, equipment performance or observed household costs. See the linked guide for sources, scope and the correction log.

Worked examples, sources and correction log

Nigeria personal income tax bands — Nigeria Tax Act 2025, effective 1 January 2026
Annual chargeable incomeRate
First ₦800,0000%
Next ₦2,200,000 (₦800,001 – ₦3,000,000)15%
Next ₦9,000,000 (₦3,000,001 – ₦12,000,000)18%
Next ₦13,000,000 (₦12,000,001 – ₦25,000,000)21%
Next ₦25,000,000 (₦25,000,001 – ₦50,000,000)23%
Above ₦50,000,00025%

Tax bands: Nigeria Tax Act 2025, Fourth Schedule and sections 30, 58, 163(1)(t), gazetted copy hosted by LIRS: https://lirs.gov.ng/assets/docs/Gazette%20-%20NIGERIA%20TAX%20ACT,%202025.pdf — verified 28 September 2026. · Data as of 2026-09-28 · Confidence: high
The Consolidated Relief Allowance (CRA) was abolished. The first ₦800,000 of chargeable income is taxed at 0%.

Frequently asked questions

How is rent relief calculated?
Section 30(2)(a)(vi) provides 20% of annual rent paid, capped at ₦500,000. ₦1,000,000 eligible annual rent gives ₦200,000 relief, not a ₦1,000,000 deduction or a ₦200,000 tax refund. Sections 31–32 address claims and evidence.
Does a minimum-wage employee need pension deductions to pay no PAYE?
No. The employment-income exemption is separate from the zero-rate band. This tool applies it to a sole steady salary at ₦70,000 a month or less, including when pension is switched off.
Is pension always 8% of gross salary?
No. The standard minimum employee rate is 8% of pensionable emoluments, with at least 10% from the employer. Confirm the earnings base in your contract. This tool makes its whole-gross example assumption explicit and lets you use a different pensionable base.
Why enter NHF as an amount?
The amount and participation must match your applicable payroll arrangements. The calculator no longer assumes 2.5% of basic salary. Enter your confirmed contribution, or zero where none applies, and resolve any discrepancy with payroll/FMBN.
Does this cover every tax deduction or income source?
No. It models a steady resident employment salary, pension, confirmed NHF and rent relief. Other eligible deductions, irregular income and special cases need a fuller assessment. The old Consolidated Relief Allowance is not applied.

More calculators

Relocation budget Compare actual monthly budgets and after-tax offers, not assumed city wages. Freelance rate What to charge per hour so your naira take-home target actually survives fees, time off and non-billable work. Rent affordability Compare the recurring budget with your entered upfront costs and savings. Generator cost What your generator really costs per day, month and year. Electricity bill Check units, tariff and VAT using your receipt or a dated, jurisdiction-specific schedule. Solar sizing Panels, battery and inverter sized from your actual appliances.