PAYE Calculator (Nigeria)
Updated November 2026 · Free · No sign-up
Calculate Nigerian PAYE under the Nigeria Tax Act (effective January 2026) — the ₦800,000 zero band, the new 15-25% progressive rates, rent relief, and the pension/NHF deductions that shrink the base.
Quick answer: The 2026 regime: first ₦800,000/year at 0%, then progressive bands of 15%, 18%, 21%, 23%, and 25% (top band above ₦50M). Minimum-wage earners are fully exempt; rent relief (up to ₦500k/20% of rent) replaced the old CRA. Pension (8%) and NHF (2.5%) deduct pre-tax.
The 2026 Band Structure (Nigeria Tax Act)
| Annual taxable income | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 (to ₦3M) | 15% |
| Next ₦9,000,000 (to ₦12M) | 18% |
| Next ₦13,000,000 (to ₦25M) | 21% |
| Next ₦25,000,000 (to ₦50M) | 23% |
| Above ₦50,000,000 | 25% |
Band edges per the commonly cited Act tables — verify against the official text/FIRS guidance; implementations varied in early 2026. The old CRA (₦200k + 20%) and the 1% minimum tax are GONE; rent relief (lesser of 20% of annual rent or ₦500,000) replaces them, and minimum-wage earners (≤₦70,000/month) pay zero PAYE.
Worked Example — ₦6,000,000 Gross
Pension 8% (₦480k) + NHF 2.5% (₦150k) + rent relief (₦500k on ₦2.5M+ rent) → taxable ≈ ₦4.87M → tax = 0 on 800k + 15% × 2.2M + 18% × 1.87M ≈ ₦666,600/year (~₦55,550/month) — an effective rate near 11%.
What Changed From the Old Regime
The 7-24% PITA ladder, CRA, and minimum tax are replaced; low earners gained hugely (zero to ₦800k + the wage exemption), middle earners roughly held, top earners pay the new 25%. Employers: January 2026 payrolls needed re-configuration — stale CRA-based calculations now MIS-deduct; employees should check January-onward payslips against this math and query differences.
Frequently Asked Questions
What are the new PAYE bands in Nigeria?
From January 2026: 0% on the first ₦800,000, then 15%, 18%, 21%, 23%, and 25% above ₦50M — replacing the old 7-24% ladder (verify band edges against the Act).
Who pays no PAYE in Nigeria?
Minimum-wage earners (₦70,000/month and below) are fully exempt, and the ₦800k zero band shelters low incomes beyond them.
What is rent relief?
The CRA’s replacement: deduct the lesser of 20% of annual rent or ₦500,000 — claimable with rent evidence.
What deductions reduce taxable pay?
Pension (8% employee), NHF (2.5%), NHIS, and rent relief — all pre-tax; gross-based payroll errors over-deduct.
Is the old CRA still available?
No — the Consolidated Relief Allowance and the 1% minimum tax were abolished by the 2025 Act effective 2026.
✓ Formula verified • Last updated: November 3, 2026