Nigeria PAYE Calculator 2026
Calculate your monthly PAYE tax deduction, see all deductions, and know your exact take-home pay.
How do I calculate PAYE in Nigeria?
To calculate PAYE: Start with monthly gross salary, multiply by 12 for annual income. Deduct pension (8%), NHF (2.5%), and NHIS (5%). Apply the 2026 tax brackets to the remaining taxable income: 0% on first ₦800,000, then 15-25% on higher amounts. Divide annual tax by 12 for monthly PAYE.
Enter Your Salary Details
Annual: ₦0
Deductions
Rent relief: ₦0 (20% of rent, max ₦500K)
Your PAYE Breakdown
Enter your salary and click Calculate to see your PAYE breakdown
2026 PAYE Tax Brackets
| Annual Taxable Income | Tax Rate | Cumulative Tax |
|---|---|---|
| ₦0 - ₦800,000 | 0% | ₦0 |
| ₦800,001 - ₦3,000,000 | 15% | ₦330,000 |
| ₦3,000,001 - ₦12,000,000 | 18% | ₦1,950,000 |
| ₦12,000,001 - ₦25,000,000 | 21% | ₦4,680,000 |
| ₦25,000,001 - ₦50,000,000 | 23% | ₦10,430,000 |
| Above ₦50,000,000 | 25% | Variable |
Frequently Asked Questions
What is PAYE in Nigeria?
PAYE (Pay As You Earn) is the system used in Nigeria for collecting income tax from employees. Employers deduct tax from salaries based on the progressive tax brackets and remit to the Federal Inland Revenue Service (FIRS) monthly.
How is PAYE calculated in Nigeria?
PAYE is calculated by: 1) Taking gross salary, 2) Deducting pension (8%), NHF (2.5%), and NHIS (5%), 3) Applying tax brackets to the remaining taxable income. The first ₦800,000 annually is tax-free.
What is the PAYE rate in Nigeria 2026?
Nigerian PAYE rates for 2026 are progressive: 0% on first ₦800,000; 15% on ₦800,001-₦3,000,000; 18% on ₦3,000,001-₦12,000,000; 21% on ₦12,000,001-₦25,000,000; 23% on ₦25,000,001-₦50,000,000; and 25% above ₦50,000,000.
When must employers remit PAYE?
Employers must remit PAYE deductions to FIRS by the 10th of the following month. For example, January salaries' PAYE must be remitted by February 10th. Late remittance attracts 10% penalty plus interest.
Can employees claim additional deductions beyond PAYE?
Yes, employees can claim rent relief (20% of annual rent, max ₦500,000) when filing their annual tax return, even if not factored into monthly PAYE. This may result in a tax refund.