🇳🇬 Nigerian Salary & Tax Calculator 2026
Updated for the Nigeria Tax Act 2025 — effective January 1, 2026. New ₦800,000 tax-free threshold, new bands and rent relief.
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How Nigerian PAYE Tax Works (2026 — New Tax Act)
PAYE (Pay As You Earn) is the system used to collect income tax from Nigerian employees. Your employer deducts tax from your salary monthly and remits it to the relevant State Internal Revenue Service (SIRS) or FIRS for FCT residents.
Nigerian PAYE Tax Bands 2026 (Nigeria Tax Act 2025)
| Annual Taxable Income | Tax Rate | Tax on Band |
|---|---|---|
| First ₦800,000 | 0% (Tax Free) | ₦0 |
| Next ₦2,200,000 | 15% | ₦330,000 |
| Next ₦9,000,000 | 19% | ₦1,710,000 |
| Next ₦13,000,000 | 21% | ₦2,730,000 |
| Next ₦25,000,000 | 24% | ₦6,000,000 |
| Above ₦50,000,000 | 25% | On excess |
What Replaced the CRA? — Rent Relief (2026)
The Consolidated Relief Allowance (CRA) has been abolished under the Nigeria Tax Act 2025. It has been replaced by a Rent Relief — employees who pay rent can deduct 20% of their annual rent, capped at ₦500,000. You must provide proof of rent payment to your employer to claim this relief.
New ₦800,000 Tax-Free Threshold
The biggest change in 2026 is the ₦800,000 annual tax-free threshold. This means employees whose chargeable income (after pension, NHF, and rent relief deductions) does not exceed ₦800,000 per year pay zero PAYE tax. This effectively exempts minimum wage earners, NYSC corps members, and low-income workers from income tax.
Pension Contribution
Under the Pension Reform Act, employees contribute 8% of monthly emoluments (basic salary + housing + transport) while employers contribute a minimum of 10%. Pension contributions are tax-deductible, reducing your taxable income.
National Housing Fund (NHF)
Nigerian employees earning ₦3,000 or more per month are required to contribute 2.5% of their basic monthly salary to the National Housing Fund (NHF). NHF contributions are also tax-deductible.