NigeriaTax and statutory compliance
PAYE under the Nigeria Tax Act 2025: a plain guide for employers
CRA is gone, rent relief is in and the first ₦800,000 is tax-free. How PAYE works in Nigeria from 2026, with a full payslip example.
4 min read
Free Nigeria calculator
Nigeria PAYE and take-home pay calculator (NTA 2025)
Work out PAYE under the Nigeria Tax Act 2025 with pension, NHF and rent relief, and see monthly take-home pay with the full working.
Rates checked against official sources on 17 October 2026
Results
Take-home pay each month
₦401,580.00
Per year ₦4,818,960.00
Chargeable income is within the ₦800,000 tax-free band, so there's no PAYE to pay.
Each month
- Gross pay
- ₦500,000.00
- Pension (8%)
- − ₦36,000.00
- NHF (2.5%)
- − ₦0.00
- PAYE
- − ₦62,420.00
- Take-home pay
- ₦401,580.00
How chargeable income is worked out (per year)
- Gross pay
- ₦6,000,000.00
- Pension
- − ₦432,000.00
- NHF
- − ₦0.00
- Rent relief
- − ₦240,000.00
- Chargeable income
- ₦5,328,000.00
Rent relief is capped at ₦500,000 a year.
| Band | Income in band | Tax |
|---|---|---|
| First ₦800,000 at 0%on ₦800,000.00 | ₦800,000.00 | ₦0.00 |
| Next ₦2,200,000 at 15%on ₦2,200,000.00 | ₦2,200,000.00 | ₦330,000.00 |
| Next ₦9,000,000 at 18%on ₦2,328,000.00 | ₦2,328,000.00 | ₦419,040.00 |
| Next ₦13,000,000 at 21%on ₦0.00 | ₦0.00 | ₦0.00 |
| Next ₦25,000,000 at 23%on ₦0.00 | ₦0.00 | ₦0.00 |
| Above ₦50,000,000 at 25%on ₦0.00 | ₦0.00 | ₦0.00 |
| PAYE for the year | ₦749,040.00 |
Monthly PAYE: ₦62,420.00· Effective rate 12.5%· Your 10% employer pension: ₦45,000.00a month
An estimate to help you plan, based on the rates shown. It isn't tax or legal advice, and individual circumstances (other reliefs, other income) can change the result.
How this calculator works
It follows the Nigeria Tax Act 2025, which has applied since 1 January 2026. Monthly pay is turned into an annual figure, the allowed deductions come off, and the result, chargeable income, is taxed in bands. The yearly tax is then divided by 12 for the monthly PAYE.
- Pension: 8% of basic salary, housing and transport allowances, under the Pension Reform Act 2014.
- NHF: 2.5% of basic salary, where the employee contributes.
- Rent relief: 20% of the annual rent the employee pays, up to ₦500,000. The employee needs to declare it, with evidence.
- The bands: 0% on the first ₦800,000, then 15%, 18%, 21%, 23% and 25%.
The old Consolidated Relief Allowance no longer exists, so this calculator doesn't apply it. For the full explanation and a worked example, read our plain guide to PAYE under the NTA 2025.
What it doesn't include
- Health insurance (NHIA) contributions, life assurance premiums and mortgage interest, which are also deductible.
- Benefits in kind and one-off payments such as bonuses.
- Pay periods before January 2026, which fall under the old Personal Income Tax Act.
Questions we often hear
Is PAYE different from state to state?
No. Under the NTA 2025, the bands and reliefs are the same everywhere. What differs is where it's paid: to the state where the employee lives. See where to pay PAYE for staff in different states.
Does someone on the minimum wage pay PAYE?
On ₦70,000 a month with pension deducted, chargeable income is under ₦800,000 a year, so no.
Sources
Read the guide
NigeriaTax and statutory compliance
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PAYE goes to the state where each employee lives, not where your office is. How that works for branches, remote staff and people who move.
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Try Eban Register
Payroll that is ready for the Nigeria Tax Act
Eban handles pension, PAYE and statutory deductions for your Nigerian team, with approvals, payslips and attendance in one place.