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 estimate monthly PAYE under the Nigeria Tax Act 2025: annualise taxable employment income, deduct eligible section 30 amounts such as qualifying pension, NHF and NHIS contributions, owner-occupied housing-loan interest, life insurance or annuity premiums, and rent relief of 20% of rent paid capped at ₦500,000. Apply the annual progressive bands, then divide the result by 12.
What are the current PAYE tax rates in Nigeria?
Under the Nigeria Tax Act 2025 (effective from 2026), the annual rates are: 0% on the first ₦800,000 of chargeable income; 15% on the next ₦2,200,000; 18% on the next ₦9,000,000; 21% on the next ₦13,000,000; 23% on the next ₦25,000,000; and 25% above ₦50,000,000.
Does the Consolidated Relief Allowance (CRA) still apply in 2026?
No. The Nigeria Tax Act 2025 does not retain the former CRA formula for 2026 calculations. It instead provides a 0% first band and the specific eligible deductions listed in section 30, including capped rent relief.
What other deductions reduce my PAYE liability?
Eligible section 30 deductions include National Housing Fund, National Health Insurance Scheme and Pension Reform Act contributions; interest on loans for an owner-occupied residential house; qualifying life-insurance or annuity premiums; and rent relief equal to 20% of annual rent paid, capped at ₦500,000.
What is the minimum PAYE threshold in Nigeria?
The first ₦800,000 of annual chargeable income is taxed at 0%. Section 58 also excludes an individual earning the statutory Minimum Wage from the individual income-tax rates. The former 1%-of-gross-income minimum-tax assumption is not used by this calculator.
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.