PAYE Tax Calculator Nigeria 2026 — Step-by-Step Breakdown
Calculate your Pay As You Earn tax with detailed band-by-band breakdown. Includes CRA, pension deduction and effective tax rate. Updated for NTA 2025.
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= ₦350,000 / month ₦
Annual Basic+Housing+Transport (typically 80% of gross) Monthly salary presets:
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Annual PAYE Tax
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Monthly PAYE
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Effective Tax Rate
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Marginal Tax Rate
Step-by-Step Tax Computation
| Step | Item | Amount |
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Tax Band Breakdown
| Band | Taxable in Band | Rate | Tax |
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Understanding Your PAYE Computation
PAYE (Pay As You Earn) is deducted at source by your employer each month and remitted to your State Internal Revenue Service (SIRS). The computation follows this order:
- Start with annual gross income
- Subtract employee pension contribution (if in CPS)
- Subtract Consolidated Relief Allowance (CRA)
- Apply progressive tax bands to get annual PAYE
- Divide by 12 for monthly deduction
The effective tax rate is always lower than the marginal rate because lower income portions are taxed at lower rates — or not at all.
Extended
Extended Calculator
More options, scenarios and visual breakdowns
See exactly how your income is allocated across the 6 PAYE tax bands.
0% 15% 18% 21% 23% 25%
Toggle reliefs to see their tax impact. Check which reliefs you may be missing.
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| Relief Item | Annual Deduction | Tax Saved | Status |
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Compare your tax under old FIRS rules vs the new NTA 2025 rates.
| Item | Old Rates (pre-2025) | NTA 2025 Rates | Your Saving |
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Professional
Professional Calculator
Maximum detail for expert-level analysis
Full Relief Inputs
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Tax Savings Recommendations
Effective vs Marginal Tax Rate
Month-by-Month PAYE Schedule
| Month | Cumulative Gross | Cumulative PAYE | This Month's PAYE |
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Frequently Asked Questions
What are the 2026 PAYE tax bands in Nigeria?
Under the Nigeria Tax Act 2025: 0% on first ₦800,000; 15% on next ₦2,200,000 (up to ₦3M); 18% on next ₦9,000,000 (up to ₦12M); 21% on next ₦13,000,000 (up to ₦25M); 23% on next ₦25,000,000 (up to ₦50M); 25% on everything above ₦50M annually.
What is a Consolidated Relief Allowance (CRA)?
CRA = the higher of ₦200,000 or 1% of gross income, PLUS 20% of gross income. This amount is subtracted from your gross income before tax is calculated, effectively reducing your tax burden. It is a statutory right for all employees.
Can I deduct rent before calculating PAYE?
Rent paid is not directly deductible for regular employees in Nigeria. However, if your employer pays rent on your behalf as a benefit, special rules may apply. This calculator includes rent as an informational input but does not deduct it unless specified by a tax planning arrangement.
How does the NTA 2025 change my PAYE from previous years?
The Nigeria Tax Act 2025 introduced the ₦800,000 tax-free band (previously ₦300,000), raised the CRA floor, and restructured the upper bands. This significantly reduces tax liability for low and middle-income earners. Workers earning up to ₦800,000/year now pay zero income tax.
What is the minimum taxable income in Nigeria?
From 2026, annual income up to ₦800,000 (approximately ₦66,667/month) is taxed at 0% under the zero-rate band. After deducting CRA (which is at least 21% of gross), most workers earning below ₦1.5M annually will pay very little or no PAYE tax.