Nigeria Finance & Salary
Nigerian PAYE Tax Calculator
Updated with 2026 Progressive Statutory Bands
Calculate your estimated annual and monthly Nigerian Personal Income Tax (PAYE) under the progressive tax framework with eligible statutory pension deductions and rent relief.
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🇳🇬 2026 Revised Tax Bands
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Total gross annual salary before any statutory deductions.
Standard statutory pension employee contribution (typically 8% of basic, housing & transport).
Eligible rent relief is calculated as the lower of 20% of annual rent or ₦500,000.
Estimated PAYE Withholding
₦1,723,200.00 / year
Monthly Tax Deduction: ₦143,600.00 / month · Effective Tax Rate: 14.36%
TRANSPARENTShows statutory reliefs & progressive brackets
2026 RULESReflects current tax thresholds & exemptions
CONFIDENTIALNo financial details are stored or transmitted
2026 Progressive Statutory Tax Bands
Nigeria's personal income tax operates on progressive marginal bands applied to net taxable income (Gross Income − Pension − Rent Relief):
- First ₦800,000: 0% (Tax-Free Exemption)
- Next ₦2,200,000: 15%
- Next ₦9,000,000: 18%
- Next ₦13,000,000: 21%
- Next ₦25,000,000: 23%
- Above ₦50,000,000: 25%
Note: Marginal tax bands mean only the portion of income falling within a specific bracket is taxed at that rate, not the entire salary.
Practical Worked Example
Suppose an employee earns an annual gross compensation of ₦12,000,000, pays ₦960,000 in statutory pensions, and pays ₦1,500,000 in annual rent:
- Rent Relief: Lower of (20% of ₦1,500,000 = ₦300,000) and ₦500,000 = ₦300,000
- Net Taxable Income: ₦12,000,000 − ₦960,000 − ₦300,000 = ₦10,740,000
- Band 1 (First ₦800,000 @ 0%): ₦0
- Band 2 (Next ₦2,200,000 @ 15%): ₦330,000
- Band 3 (Remaining ₦7,740,000 @ 18%): ₦1,393,200
- Total Annual PAYE: ₦1,723,200 (₦143,600 / month)