PAYE calculator, 2026 bands.
See monthly PAYE and take-home pay under the Nigeria Tax Act 2025, with pension and rent relief. An estimate, not tax advice.
- Gross per year
- ₦6,000,000
- Pension (8%)
- −₦480,000
- Rent relief
- −₦0
- Taxable income
- ₦5,520,000
- PAYE per year
- ₦783,600
- Effective tax rate
- 13.1%
See the band-by-band working
| Band | Rate | Taxed | Tax |
|---|---|---|---|
| ₦0 to ₦800,000 | 0% | ₦800,000 | ₦0 |
| ₦800,000 to ₦3,000,000 | 15% | ₦2,200,000 | ₦330,000 |
| ₦3,000,000 to ₦12,000,000 | 18% | ₦2,520,000 | ₦453,600 |
How PAYE works from 2026
From 1 January 2026, the first ₦800,000 of taxable income a year is tax-free. After that, income is taxed in slices: 15% on the next ₦2.2m, 18% on the next ₦9m, 21% on the next ₦13m, 23% on the next ₦25m and 25% above ₦50m.
Taxable income is gross pay minus allowable deductions: the employee's 8% pension contribution, NHF and NHIS where they apply, and rent relief of 20% of annual rent, up to ₦500,000. The old Consolidated Relief Allowance no longer applies.
Questions, answered.
Is this the new 2026 tax?
Yes. It uses the Nigeria Tax Act 2025 bands that took effect on 1 January 2026.
Why is my PAYE zero?
If taxable income is ₦800,000 a year or less, no income tax is due.
Is this tax advice?
No. It's an estimate for planning. Check with the Nigeria Revenue Service, your state revenue service or your accountant.
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