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 Nigeria Revenue Service (NRS, formerly 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 the relevant State IRS (or NRS for FCT) 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.
How much PAYE do I pay on 500,000 monthly salary?
On a ₦500,000 monthly salary (₦6,000,000 annual) in Nigeria 2026, after 8% pension deduction, your PAYE is approximately ₦56,000/month (₦672,000/year). Your take-home pay is roughly ₦404,000 per month.
How much tax on 300,000 salary in Nigeria?
On a ₦300,000 monthly salary (₦3,600,000 annual), after pension and statutory deductions, your monthly PAYE tax is approximately ₦28,000. Your annual tax is about ₦336,000 with an effective rate around 9.3%.
Is PAYE deducted monthly in Nigeria?
Yes, PAYE (Pay As You Earn) is deducted monthly from employees' salaries by employers. Employers must remit these deductions to NRS (for FCT) or the relevant State IRS by the 10th of the following month.
What happens if my employer doesn't remit PAYE?
If your employer fails to remit PAYE, they face penalties including 10% of unpaid tax plus interest. As an employee, you can verify your tax status with NRS using your TIN. Keep your payslips as proof of deductions.
Do I need a TIN for PAYE in Nigeria?
Yes, every employee subject to PAYE should have a Tax Identification Number (TIN). Your employer typically assists with TIN registration. You can also register directly at any NRS office or via the JTB TIN portal.