Nigerian Tax Calculators
Select Calculator Type
Nigeria PAYE Tax Calculator 2025 & 2026
Calculate your PAYE (Pay As You Earn) tax deductions with accurate Nigeria PAYE tax rates and bands
PAYE Calculator: Get instant PAYE calculation in Nigeria for employees. Compare current PAYE tax rates (2025) vs new Nigeria PAYE tax bands 2026.
What is PAYE?
PAYE (Pay As You Earn) is Nigeria's system for collecting income tax from employees. Your employer deducts PAYE tax from your salary based on current Nigeria PAYE tax rates and remits it to tax authorities.
₦Employee Income Details (PAYE)
Additional Income
−PAYE Deductions & Allowances
Basic + Housing + Transport
Required for employers with 15+ employees
Basic salary only
Required for employers with 10+ employees
Basic salary only, capped at ₦200/month
For employees earning >₦3,000/month
Additional Deductions
Ready to Calculate Your PAYE?
Enter your employee income details above to calculate accurate PAYE tax deductions using current Nigeria PAYE rates
Disclaimer
This PAYE calculator provides accurate estimates for Nigerian employees' Pay As You Earn tax planning purposes.
Legal Framework:
- 2025 PAYE calculations use current Nigeria PAYE tax rates based on PITA 2011 (as amended)
- 2026 PAYE calculations use new Nigeria PAYE tax bands from Nigeria Tax Act 2025 (effective January 1, 2026)
Key Features:
- Handles monthly/annual pay periods with automatic conversion
- Optional statutory deductions with checkboxes (not all employers participate)
- Pension (8% of Basic + Housing + Transport) - Required for employers with 15+ employees
- NHIS (5% of basic salary) - Required for employers with 10+ employees
- NHF: 2.5% of basic salary, capped at ₦200/month for salaries >₦3,000/month
- Gratuity is treated as tax-exempt (per 2019 Tax Appeal Tribunal ruling)
- Benefits-in-kind (e.g., car benefit at 5% of cost) are taxable
- Reimbursements with receipts are not taxable
- Rent relief: 20% of rent paid, maximum ₦500,000
- 2025 PAYE: Consolidated Relief Allowance + 1% minimum PAYE tax rule applied
- 2026 PAYE: New Nigeria PAYE tax bands with ₦800,000 tax-free threshold, no minimum tax
- 2026: Only specific eligible deductions per Section 30 - no generic "other deductions"
Results may vary based on individual circumstances, residency status, and other factors. Consult a qualified tax professional for personalized advice.
Current Nigeria PAYE Tax Rates 2025
| Annual Income Range | PAYE Rate |
|---|---|
| First ₦300,000 | 7% |
| Next ₦300,000 | 11% |
| Next ₦500,000 | 15% |
| Next ₦500,000 | 19% |
| Next ₦1,600,000 | 21% |
| Above ₦3,200,000 | 24% |
New PAYE Tax Rates 2026
Tax Act 2025| Annual Income Range | PAYE Rate |
|---|---|
| First ₦800,000 | 0% (Tax Free) |
| Next ₦2,200,000 | 15% |
| Next ₦9,000,000 | 18% |
| Next ₦13,000,000 | 21% |
| Next ₦25,000,000 | 23% |
| Above ₦50,000,000 | 25% |
Frequently Asked Questions About PAYE in Nigeria
What is the PAYE tax rate in Nigeria for 2025?
Nigeria PAYE tax rates for 2025 range from 7% to 24% based on progressive income bands:
- First ₦300,000: 7%
- Next ₦300,000: 11%
- Next ₦500,000: 15%
- Next ₦500,000: 19%
- Next ₦1,600,000: 21%
- Above ₦3,200,000: 24%
How is PAYE calculation done in Nigeria?
PAYE is calculated using progressive tax bands on your chargeable income after deducting allowable reliefs (like Consolidated Relief Allowance) and statutory deductions (pension, NHIS, NHF). Your employer automatically deducts this from your salary monthly.
What changes are coming to Nigeria PAYE tax in 2026?
The Nigeria Tax Act 2025 introduces significant changes effective January 2026: The first ₦800,000 of annual income will be completely tax-free, new progressive rates apply to higher income brackets, and the Consolidated Relief Allowance is replaced with rent relief of up to ₦200,000.
Who is exempt from PAYE tax in Nigeria?
Employees earning the national minimum wage (₦70,000 monthly as of May 2024) or less are exempt from PAYE tax. Starting 2026, employees earning less than ₦800,000 annually will be completely exempt from PAYE tax.
What is the minimum PAYE tax rate in Nigeria?
For 2025, if your calculated PAYE tax is very low due to reliefs and deductions, you must pay a minimum tax of 1% of your gross income. This minimum tax rule will be removed under the new 2026 tax system.
What statutory deductions reduce PAYE tax?
Key statutory deductions include: Pension contribution (8% of basic + housing + transport allowances), NHIS contribution (5% of basic salary), NHF contribution (2.5% of basic salary, capped at ₦200/month), and Consolidated Relief Allowance (higher of ₦200,000 or 1% of gross income, plus 20% of gross income).
What is the PAYE percentage in Nigeria by income level?
PAYE percentage varies by income level due to Nigeria's progressive tax system. Lower earners pay 7-11%, middle income earners pay 15-19%, while high earners pay 21-24%. The effective PAYE rate depends on your total annual income and applicable reliefs.
Important Disclaimer:
This tax calculator provides only an estimate based on the information you provide and current tax rates. Actual tax liabilities may differ. This tool should not be considered as professional tax or financial advice. Please consult with a qualified tax professional for advice specific to your situation.