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Calculator · ₦800,000 tax-free from 2026

PAYE Calculator 2026

See your tax and take-home pay under the Nigeria Tax Act 2025, band by band, and whether you pay more or less than under the old law.

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Your pay
₦

Before tax and deductions. An example is filled in.

Other deductions and reliefs
₦
₦
₦

20% is relieved, up to ₦500,000.

₦
₦

Leave blank anything that doesn't apply.

What if
Scenarios

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Your estimate

Nigeria Tax Act 2025 · gross ₦4,800,000 a year

Send

Estimated PAYE each month

₦0

Take-home each month
₦0
Tax for the year
₦0
Share of pay to tax
12.2%
Tax on your next naira
18%top band

Where your pay goes

80%take-home
  • Take-home80%
  • Tax12%
  • Pension and other deductions8%

2026 law compared with the old law

2026 law
₦48,740
Old law
₦49,323

You pay ₦583 less tax each month than under the old law.

What if your pay rose by 10%?

At ₦440,000 a month you would pay ₦55,364 in tax and take home ₦349,436: ₦30,176 more in your pocket, with ₦6,624 more going to tax.

Band by band

Chargeable incomeRateTaxed hereTax
First ₦800,0000%₦800,000₦0
Next ₦2,200,00015%₦2,200,000₦330,000
Next ₦9,000,00018%₦1,416,000₦254,880
Next ₦13,000,00021%₦0₦0
Next ₦25,000,00023%₦0₦0
Above ₦50,000,00025%₦0₦0
Total₦4,416,000₦584,880

How we worked it out

Your gross pay is ₦4,800,000 a year. Deductions and reliefs of ₦384,000 (pension ₦384,000) leave ₦4,416,000 of chargeable income.

The first ₦800,000 is taxed at 0%, and the rest climbs through the bands up to your top rate of 18%.

Next step

Running payroll for a team?

Floray reviews PAYE computations, remittances and reliefs for employers, and keeps you compliant with the new Act.

Talk to our tax team Company Tax Estimator
Assumptions and limits (6)
  • Uses the Nigeria Tax Act 2025 bands in force from 1 January 2026, applied to a full year of pay.
  • Pension is estimated at 8% of gross pay when switched on. By law it is 8% of basic, housing and transport, so your payslip may show less.
  • Rent relief is 20% of the annual rent you pay, capped at ₦500,000, and has to be declared.
  • Pay at or below the national minimum wage (₦70,000 a month) is treated as exempt.
  • The old-law figure uses the consolidated relief allowance and the 1% minimum tax that applied before 2026.
  • Benefits in kind, bonuses, more than one job and state-level practice are not modelled.
Sources

An estimate for general information, not professional advice. Nothing you type is stored or sent anywhere. Rates last checked 13 October 2026.

How PAYE works from 2026

The Nigeria Tax Act 2025 took effect on 1 January 2026 and replaced the Personal Income Tax Act. For employees, three things changed.

  • New bands. The first ₦800,000 of chargeable income is taxed at 0%. The next ₦2.2 million is taxed at 15%, the next ₦9 million at 18%, the next ₦13 million at 21%, the next ₦25 million at 23%, and anything above ₦50 million at 25%.
  • No consolidated relief allowance. The old allowance of ₦200,000 plus 20% of gross income has gone. In its place is rent relief: 20% of the rent you pay in the year, capped at ₦500,000.
  • The same core deductions. Pension, National Housing Fund and health insurance contributions, life insurance premiums and interest on a loan for an owner-occupied home still reduce the income that is taxed.

Who pays less, and who pays more

Most low and middle earners pay less, because the tax-free band is far wider than before. Higher earners can pay more, because the old 20% allowance grew with income while rent relief stops at ₦500,000, and the top rate rose from 24% to 25%. Change the gross pay above and watch the comparison switch.

For employers

If you run payroll, every payslip changed in January 2026. Floray reviews PAYE computations and remittances, and trains payroll and finance teams on the Act. Ask our tax team or build a training brief.

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