Start with total pay
Sum basic salary, housing allowance, transport allowance, and any other taxable allowances.
Your Salary Details
Nigeria Tax Act — effective 1 January 2026.
Voluntary for private sector under NTA 2026
Requires lease documentation
Take-Home Pay
₦0
per month
Gross Pay₦0
Pension (8%)−₦0
NHF (2.5%)−₦0
Chargeable Income₦0
PAYE Tax−₦0
Net Take-Home₦0
Effective tax rate: 0.00%
Employer Cost
Gross Pay₦0
Pension (10%)+₦0
NSITF (1%)+₦0
ITF (1%)+₦0
Total Employer Cost₦0
Method
How Nigerian PAYE is calculated
Remove the allowed deductions
Employee pension, NHF where applicable, and rent relief under NTA 2026 where documented.
Apply the active regime
Under NTA 2026 the first ₦800,000 is tax-free; under PITA the older CRA-and-band model still applies.
Land on take-home pay
Gross pay minus pension, NHF, and PAYE gives the employee net figure, while employer contributions sit beside it.
2026 PAYE Tax Bands (NTA)
| Annual Chargeable Income | Rate | Tax on Band |
|---|---|---|
| ₦0 – ₦800,000 | 0% | ₦0 |
| ₦800,001 – ₦3,000,000 | 15% | up to ₦330,000 |
| ₦3,000,001 – ₦12,000,000 | 18% | up to ₦1,620,000 |
| ₦12,000,001 – ₦25,000,000 | 21% | up to ₦2,730,000 |
| ₦25,000,001 – ₦50,000,000 | 23% | up to ₦5,750,000 |
| Above ₦50,000,000 | 25% | on remainder |
Employees earning ≤ ₦800,000/year (≡ ₦66,667/month) pay zero PAYE — aligned with the national minimum wage.
Old PITA Bands (2025 and prior)
| Annual Chargeable Income | Rate |
|---|---|
| First ₦300,000 | 7% |
| Next ₦300,000 | 11% |
| Next ₦500,000 | 15% |
| Next ₦500,000 | 19% |
| Next ₦1,600,000 | 21% |
| Above ₦3,200,000 | 24% |
Under PITA, Consolidated Relief Allowance (CRA) of 21% of gross income was subtracted before applying bands. CRA is abolished under NTA 2026.
Frequently Asked Questions
When does the new NTA 2026 take effect?
The Nigeria Tax Act was signed on 26 June 2025 and takes effect from 1 January 2026. Payrolls from January 2026 onwards should use the new bands. Use the PITA 2025 toggle above for 2025 tax year calculations.
What is pensionable emolument?
Pension is calculated on basic salary + housing allowance + transport allowance only. Bonuses, commissions and other variable pay are excluded unless your employment contract specifies otherwise.
Is NHF still mandatory?
Under the NTA 2026, NHF (National Housing Fund) contributions are voluntary for private sector employees. Public sector employees remain mandatory contributors. You can tick the NHF box above if it applies to you.
What is the Rent Relief under NTA 2026?
Employees who pay rent can claim a deduction equal to 20% of their annual rent paid, capped at ₦500,000 per year. Documentary proof (lease agreement and receipts) must be submitted to your employer to claim this relief.
Who pays NSITF and ITF?
Both are employer-only contributions — they are not deducted from your salary. NSITF (Nigeria Social Insurance Trust Fund) is 1% of monthly payroll. ITF (Industrial Training Fund) is 1% of annual payroll, applicable to employers with ≥5 employees or ≥₦50 million annual turnover.
I earn less than ₦70,000/month. Do I pay tax?
Under NTA 2026, employees earning ₦800,000 or less per year (≈ ₦66,667/month) pay zero PAYE. This aligns with the national minimum wage. The old 1% minimum tax rule has been abolished.
How accurate is this calculator?
This calculator implements the NTA 2026 and PITA tax rules as published. It is for guidance only and does not constitute tax advice. For complex situations (multiple employers, share options, expatriate rules), consult a certified tax practitioner or the FIRS.