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Take-Home Pay Calculator — Nigeria 2026 Tax Law

Nigeria's personal income tax changed fundamentally on 1 January 2026. The Nigeria Tax Act 2025 abolished the Consolidated Relief Allowance and replaced it with a flat ₦800,000 tax-free band, so the first ₦800,000 of your chargeable income attracts zero tax. This calculator applies the new six-band schedule, deducts your 8% pension, and optionally your NHF.

💵  Calculator

₦243,820

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

Annual gross salary ₦3,600,000
Pension (8%, yours to keep) ₦288,000
NHF (2.5% of basic) ₦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
What you actually cost your employer ₦3,960,000
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.

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Before you rely on this

  • The rent relief introduced by the 2026 Act is reported with two different caps in published summaries — 20% of rent capped at ₦500,000 in some, a flat ₦200,000 in others. This calculator treats it as a straight deduction from chargeable income. Confirm your position with a tax adviser or FIRS before relying on it.
  • Actual payroll also varies by state, and some employers apply deductions this calculator does not model, such as NHIS health insurance at 5% of basic.

How this is calculated: Calculator logic in assets/js/calc-core.js, verified by the test suite in tests/calc-core.test.js. Rate inputs are prefilled from the figures below. · Data as of 2026-09-10
Prefilled rates are national reference values. Your own receipt, payslip or pump price always overrides them.

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: Fourth Schedule, Nigeria Tax Act 2025. Bands corroborated by mondaq.com, mercans.com and fiscalreforms.ng (Nigeria Tax Reform Implementation Committee calculator), Sep 2026. · Data as of 2026-09-10 · Confidence: high
The Consolidated Relief Allowance (CRA) was abolished. The first ₦800,000 of chargeable income is taxed at 0%.

Frequently asked questions

Is the first ₦800,000 of my salary really tax-free in 2026?
The first ₦800,000 of your chargeable income is taxed at 0%. Chargeable income is your gross less pension, NHF and any rent relief, so the tax-free amount applies after those deductions. A worker on the ₦70,000 national minimum wage earns ₦840,000 a year and, after 8% pension, has ₦772,800 chargeable — which means no PAYE at all.
What happened to the Consolidated Relief Allowance?
It was abolished by the Nigeria Tax Act 2025. The old CRA gave you the higher of ₦200,000 or 1% of gross income, plus 20% of gross. For a ₦1,000,000 annual salary that was ₦400,000 of relief; the flat ₦800,000 zero-rate band is worth more to almost everyone below roughly ₦4m a year.
Is NHF still compulsory?
Under the 2026 Act, NHF is voluntary for private-sector employees and remains mandatory in the public sector. Many private employers still deduct it out of habit. If yours does and you would rather it did not, that is a conversation with HR, not with FIRS.
Why is my pension shown as a deduction if it is my money?
It reduces your taxable income today and belongs to you at retirement, so it is the best deduction on the list. Your employer adds a further 10% on top, which is why the calculator shows your total employer cost separately.
Does this cover freelance or foreign-currency income?
The bands are the same, but there is no employer doing PAYE for you, so you self-assess. Convert foreign income at the rate on the date received and keep the records.

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