PAYE Calculator
Calculate your Pay As You Earn (PAYE) tax using our comprehensive Personal Income Tax Calculator. Get instant, accurate estimates based on current Nigerian tax rates.
Personal Income Tax Calculator
Our PAYE calculator is part of our comprehensive Personal Income Tax Calculator. Calculate tax on salaries, bonuses, and other employment income with ease.
Free to use • No registration required • Instant results
What is PAYE?
Pay As You Earn (PAYE) is the system used in Nigeria to collect personal income tax from employees' salaries. Tax is deducted at source by employers and remitted to tax authorities.
Tax Rates 2026
Our calculator uses the latest Nigerian personal income tax rates and reliefs under the Nigeria Tax Act 2025 (effective 2026), ensuring accurate calculations for your tax planning.
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.
Frequently Asked Questions
How do I calculate PAYE tax on my monthly salary in Nigeria?
To calculate monthly PAYE: (1) Start with gross monthly salary. (2) Deduct reliefs — Consolidated Relief Allowance (CRA: the higher of ₦200,000 or 1% of annual gross, plus 20% of annual gross, divided by 12); pension (8% of monthly emoluments); NHF (2.5% of basic salary); NHIS contributions. (3) The result is monthly taxable income. (4) Annualise it, apply the progressive rate bands, then divide by 12. Example: gross monthly salary of ₦500,000 → annual gross ₦6,000,000 → CRA ₦1,400,000 + pension ₦480,000 = taxable income ₦4,120,000 → annual PAYE ≈ ₦386,200 → monthly PAYE ≈ ₦32,183. Use the calculator on this page for an instant result.
What are the current PAYE tax rates in Nigeria?
Under the Nigeria Tax Act 2025 (effective from 2026), PAYE is charged at progressive rates: 7% on the first ₦800,000 of taxable income; 11% on the next ₦2,200,000; 15% on the next ₦9,000,000; 19% on the next ₦13,000,000; 21% on the next ₦25,000,000; and 24% on any taxable income above ₦50,000,000 per year.
What is the Consolidated Relief Allowance (CRA) in Nigeria?
The Consolidated Relief Allowance (CRA) is a statutory tax relief deducted from gross income before computing taxable income. It equals the higher of ₦200,000 or 1% of gross income, plus 20% of gross income. CRA significantly reduces PAYE liability — for most employees, it represents the largest single deduction.
What other deductions reduce my PAYE liability?
Besides the CRA, allowable deductions include: mandatory pension contributions (8% of monthly emoluments under the Contributory Pension Scheme); National Housing Fund (NHF) contributions (2.5% of basic salary); National Health Insurance Scheme (NHIS) contributions; and life assurance premiums. All these are deducted from gross income before the progressive PAYE rates are applied.
What is the minimum PAYE threshold in Nigeria?
There is no formal zero-rate band, but the CRA and other reliefs mean low earners typically pay little or no PAYE. A minimum tax provision applies: if calculated PAYE is below 1% of gross income, the taxpayer pays 1% instead — unless their gross income is below the national minimum wage (currently ₦70,000/month), in which case they are exempt from PAYE entirely.
When must employers remit PAYE to tax authorities in Nigeria?
Employers must deduct PAYE from employees' salaries each month and remit the total to the relevant State Internal Revenue Service (SIRS) on or before the 10th day of the following month. For example, PAYE deducted in March must be remitted by April 10. Remittance is accompanied by a schedule listing each employee, their gross pay, deductions, and PAYE withheld.
What are the penalties for late PAYE remittance in Nigeria?
Employers who fail to remit PAYE by the 10th of the following month face a penalty of 10% of the tax withheld plus interest at the CBN minimum rediscount rate, under the Nigeria Tax Administration Act, 2025. Directors of defaulting companies can be held personally liable for unremitted PAYE. Persistent non-compliance can also trigger a tax audit.