Free tool · Nigeria Tax Act 2025

Nigeria PAYE Calculator 2026

Work out your monthly tax and take-home pay under the new tax law — ₦800,000 tax-free, rates from 0% to 25%, with pension and the new rent relief. No sign-up needed.

Your salary

PAYE tax — monthly

₦63,500

₦762,000 / year

Take-home — monthly

₦386,500

₦4,638,000 / year · after tax & pension

Taxable income (annual)₦5,400,000
Effective tax rate14.1%

How the bands add up

₦800,000 @ 0% ₦0
₦2,200,000 @ 15% ₦330,000
₦2,400,000 @ 18% ₦432,000

Estimate based on the Nigeria Tax Act 2025 PAYE bands effective 1 Jan 2026. Other statutory reliefs (NHF, NHIS, life assurance) may further reduce your taxable income. Confirm with your tax adviser. Not official FIRS advice.

The new 2026 PAYE bands, explained

From 1 January 2026, the Nigeria Tax Act 2025 replaced the old personal-income-tax brackets. The first ₦800,000 you earn a year is now tax-free, and the top rate is 25%. Tax is progressive — each band only taxes the slice of income that falls inside it.

Annual taxable incomeRate
First ₦800,0000% (tax-free)
Next ₦2,200,000 (up to ₦3m)15%
Next ₦9,000,000 (up to ₦12m)18%
Next ₦13,000,000 (up to ₦25m)21%
Next ₦25,000,000 (up to ₦50m)23%
Above ₦50,000,00025%

You also get rent relief: 20% of your annual rent, up to ₦500,000, comes off your taxable income before tax is worked out — plus your pension contribution.

Stop calculating PAYE by hand

IloByte Pro runs the 2026 PAYE bands across your whole payroll automatically — payslips, pension, and a ready-to-file schedule for FIRS — so every staff member is taxed correctly, every month.