Nigeria PAYE
Tax Calculator

Old PITA (2025) and new Nigeria Tax Act (2026) side-by-side. Real FIRS bands, exact numbers, net-to-gross reverse calc.

Includes AI Advisor NTA 2026 Updated FIRS evidence Net-to-Gross

Last verified: Mar 2026 · Source: NTA 2025, FIRS

Also see: Nigeria VAT Calculator · How to Calculate PAYE in Nigeria → · Nigeria Import Duty Guide →

Which tax system applies to me?

PITA (old): Use for 2025 tax year or if your employer hasn’t switched yet. CRA (Consolidated Relief Allowance) reduces your taxable income. NTA 2026 (new): The Nigeria Tax Act took effect 1 Jan 2026. CRA is abolished, replaced by an ₦800K tax-free threshold and Rent Relief. If you’re unsure, calculate both and compare — the tabs below let you switch instantly.

NTA 2026 selected: CRA abolished. ₦800,000 tax-free threshold. Rent Relief replaces CRA. Pension on Basic+Housing+Transport only.

Last updated: March 2026

Enter Your Details Nigerian Naira · ₦
₦3,600,000
Before any deductions
₦

Deductions Select all that apply
Employer-dependent
%

Default: 5% of basic salary. Some employers use different rates (1.75% to 10%).

₦
Max ₦500,000/yr
₦

Owner-occupied residential property only. Max ₦500,000 deductible under NTA.

Basic + Housing + Transport
₦

NTA 2026: pension (8%) applies only to Basic + Housing + Transport, not total gross.

For Rent Relief
₦

Relief = lower of 20% of rent or ₦500,000. Leave blank if you own your home.

Monthly Take-Home Pay
₦0
After all deductions & tax
Effective Rate
0%
Tax / Gross
Marginal Rate
0%
Rate on next ₦1
Effective Tax Rate 0%
Detailed Band-by-Band Breakdown

Save this scenario

Name your result, keep it on this device, and sync it into your dashboard when you are signed in.

Open dashboard
Employer Cost Breakdown Total cost to company
AI Tax Advisor Powered by Claude

Calculate your salary first — then I'll analyse your position, show legal ways to reduce your tax, and tell you which regime wins for you.

FYI: Development Levy

Under NTA 2026, companies pay a 4% Development Levy on assessable profit. This is an employer/company-level charge, not deducted from employee salary. Shown here for HR professionals calculating total employment cost.

Disclaimer: For informational purposes only. NTA 2026 figures based on the signed Act. Confirm with a qualified Nigerian tax professional. Tax laws may be updated by supplementary instruments.
Nigeria PAYE Calculator
Nigeria PAYE Calculator
Tax & Finance
12K
Calculations
Sources
Linked
Free
Forever
PITA & NTA Net-to-Gross PDF Export AI Advisor Employer Cost
Updated: Mar 2026
All Countries

Save this calculator

Bookmark Nigeria PAYE to your personal dashboard for quick access anytime.

Understanding Nigeria Tax

How PAYE Works Under NTA 2026

Everything you need to know about Nigeria's new tax system — from the ₦800K threshold to rent relief.

What changed?

The Nigeria Tax Act (NTA) replaced PITA effective January 1, 2026. The biggest change: CRA is abolished. In its place, everyone gets an ₦800,000 tax-free threshold — meaning if you earn below ₦800K/year, you pay zero income tax.

Rent Relief

Replaces CRA as the primary non-pension deduction. Calculated as the lower of 20% of rent actually paid or ₦500,000/year. If you own your home and don't pay rent, you cannot claim this relief.

Pension & NHF

Employee pension stays at 8%, but now applies only to Basic + Housing + Transport (pensionable emoluments), not total gross. Employers contribute 10%. NHF is 2.5% of basic salary and remains tax-deductible.

NTA 2026 vs PITA 2025 Tax Bands

NTA 2026 Band Rate PITA 2025 Band Rate
0 – 800K0%First 300K7%
800K – 3M15%Next 300K11%
3M – 12M18%Next 500K15%
12M – 25M21%Next 500K19%
25M – 50M23%Next 1.6M21%
Above 50M25%Above 3.2M24%

Key numbers at a glance

₦800K Tax-free threshold
25% Top NTA rate
8% Employee pension
₦500K Max rent relief

Nigerian businesses should also review 7.5% VAT obligations and use our Import Duty Calculator when planning landed costs. Professionals considering international opportunities can use the Japa Cost Calculator to plan relocation finances.

Nigeria Tax FAQ

Common PAYE Questions

What are the new PAYE tax bands for 2026?

Under NTA 2026: 0% on first ₦800,000; 15% on ₦800,001–₦3M; 18% on ₦3M–₦12M; 21% on ₦12M–₦25M; 23% on ₦25M–₦50M; 25% above ₦50M.

What happened to CRA under the new tax law?

CRA is abolished under NTA 2026. Replaced by Rent Relief — the lower of 20% of annual rent paid or ₦500,000. If you own your home, you cannot claim Rent Relief.

When does the Nigeria Tax Act take effect?

Signed June 26 2025. Takes effect January 1 2026. Your 2025 payslip still uses PITA with CRA. Select “Old System — PITA” above for 2025 calculations.

How is pension calculated under NTA 2026?

Under NTA 2026, employee pension (8%) applies only to Basic Salary + Housing + Transport — not total gross. Enter your pensionable emoluments separately.

Can I do a net-to-gross calculation?

Yes. Switch to “Net → Gross” mode at the top of the input card. Enter your desired take-home pay and we'll compute the gross salary needed under either PITA or NTA.

What is the employer cost for hiring in Nigeria?

Employers pay 10% pension contribution plus optional NHF (2.5%) and NHIS (varies). Our employer cost section below the results shows total cost to company including all employer obligations.

What is the effective vs marginal tax rate?

Effective rate = total tax paid / gross income. Marginal rate = the tax rate on your next naira earned. A higher earner has a higher marginal rate but may have a moderate effective rate due to progressive bands.

Is there a minimum tax in Nigeria?

Under PITA, minimum tax is 1% of gross income when calculated PAYE is less. Under NTA 2026, the ₦800,000 tax-free threshold replaces the minimum tax concept for individuals.

What is CRA under PITA?

Consolidated Relief Allowance = 20% of gross income plus the higher of ₦200,000 or 1% of gross income. Deducted before applying the six graduated bands (7%–24%). Abolished under NTA 2026.

Is NHF mandatory?

The National Housing Fund requires employees earning ₦3,000+ per year to contribute 2.5% of basic salary. Contributions are tax-deductible. Enforcement varies by employer, but it’s technically mandatory under the NHF Act.

Nigeria PAYE Cluster

Turn tax guidance into an exact take-home number

Quick answer

Nigeria take-home pay depends on the tax regime, pension treatment, statutory deductions, and how your employer structures pay. Reading the rules helps; using the calculator shows the actual number.

Use the tool

Calculate Nigeria PAYE and take-home pay

Compare old and new tax treatment, pension, NHF, and net salary in one place.

Open Nigeria PAYE Calculator

Related guides

Related tools

Why is my effective tax rate lower than the top bracket?
Progressive systems tax slices of income at different rates, so your blended rate is usually below the top marginal rate.
What should I check if my payslip looks wrong?
Check the salary basis, pensionable pay, statutory deductions, and the tax regime your employer is using.

Money tool operating notes

Use the Nigeria PAYE calculator as a payroll estimate, not a filing substitute

This page is for payroll checks, salary negotiations, HR estimates and accountant review. It should help a user understand the calculation path before they rely on official filings.

Clear use case

A founder, accountant or HR lead can enter gross monthly salary, allowances and relief assumptions to estimate employee PAYE and take-home pay before payroll is finalized.

Worked example

For an employee on NGN 500,000 gross monthly pay, use the calculator to separate taxable pay, relief assumptions, estimated PAYE and net pay. Treat the output as a planning number until a payroll professional confirms the full facts.

Methodology and assumptions

The page uses the PAYE logic implemented in AfroTools and presents the key assumptions beside the result. It does not decide every allowance treatment, exemption, pension treatment or state-specific filing detail.

FAQ

  • Can I use this result for filing? Use it as an estimate and documentation aid. Filing should still be checked against official guidance and the employee record.
  • Can a business embed this calculator? Yes. Use the widget, sponsorship, API or custom calculator paths below for business deployments.

Related tools and business paths

Reviewed for page structure and sales readiness: May 4, 2026. Tax rates and interpretations can change. Verify with FIRS, the relevant state tax authority or a licensed adviser before filing or issuing payroll.

Official evidence

Sources & verification

This high-stakes calculator links the authority sources, method notes, test cases, and limitations used to check the numbers shown on this page.

Last verified 2026-03-01

Nigeria - high risk - AfroTools source audit

Official source links

Law, regulation, or version

Last verified: Mar 2026 · Source: NTA 2025, FIRS Also see: Nigeria VAT Calculator · How to Calculate PAYE in Nigeria → · Nigeria Import Duty Guide → Which tax system applies to me? PITA (old): Use for 2025 tax ye

Calculation methodology

The calculator annualizes salary where needed, applies modeled employee statutory deductions, runs taxable income through the country PAYE bands, and derives net pay from gross pay minus modeled PAYE and statutory deductions. Employer-cost lines are informational where the page exposes them.

Known limitations

  • Informational estimate only. It is not professional tax, legal, payroll, or filing advice.
  • Sector-specific, regional, treaty, relief, and special-regime rules may not be fully modeled.
  • Confirm filing, registration, and remittance duties with the official authority or a qualified adviser before submission.

Test-case examples

Input: Annual gross salary: 0.
Expected: PAYE and statutory deductions should be 0 and net pay should not be negative.
Why: Establishes the zero-income baseline and catches negative liability regressions.

Input: Annual gross salary entered in the page currency.
Expected: Taxable income is processed through the visible country bands and net pay equals gross pay minus modeled deductions.
Why: Confirms the calculator is using the documented methodology rather than an opaque flat estimate.

Change history

  • 2026-05-02: Trust and verification panel added with source links, methodology, limitations, and report-error CTA.

AfroTools calculators are decision-support tools. Always confirm filing, registration, and remittance duties with the linked authority or a qualified local adviser.

Report calculation error