What are the Nigeria PAYE tax bands for 2026?

Under NTA 2026: 0% on first N800,000; 15% on N800,001-N3,000,000; 18% on N3,000,001-N12,000,000; 21% on N12,000,001-N25,000,000; 23% on N25,000,001-N50,000,000; 25% above N50,000,000.

What happened to CRA under NTA 2026?

CRA is abolished. Replaced by Rent Relief, the lower of 20% of rent paid or N500,000 per year.

How do I calculate PAYE in Nigeria?

Start with annual gross salary, deduct pension (8% of Basic+Housing+Transport), deduct NHF (2.5% of basic), apply CRA (PITA) or tax-free threshold (NTA 2026), then apply progressive tax bands.

What is the PAYE rate in Nigeria?

Nigeria PAYE rates are progressive. Under NTA 2026: 0% on first N800,000, then 15%, 18%, 21%, 23%, and 25%. Under PITA: 7%, 11%, 15%, 19%, 21%, and 24%.

How do I calculate net-to-gross salary in Nigeria?

Enter your desired take-home pay and use our reverse calculator to find the gross salary needed. The tool accounts for pension, NHF, NHIS, and the applicable tax regime.

Is there a free tax calculator for Nigeria?

Yes. AfroTools provides a free tax calculator supporting both PITA 2025 and NTA 2026. No sign-up required.

Nigeria PAYE Tax Calculator 2026 | NTA vs PITA

Enter Your Details Nigerian Naira · ₦

Annual Gross Salary ₦3,600,000

Annual Gross Salary Before any deductions

₦

Entry Period

Deductions Select all that apply

Pension

8% employee

NHF

2.5% of basic

NHIS

Life Insurance

custom

Home Loan Interest

max ₦500k

NHIS Contribution Rate (%) Employer-dependent

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

Annual Life Insurance Premium

₦

Annual Home Loan Interest Max ₦500,000/yr

₦

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

Pensionable Emoluments Basic + Housing + Transport

₦

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

Annual Rent Paid 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

Tax / Gross

Marginal Rate

Rate on next ₦1

Effective Tax Rate 0%

Detailed Band-by-Band Breakdown

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.

PITA 2025 Tax Bands ▾

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 Tax Calculator — How PAYE Works

This Nigeria tax calculator computes your PAYE (Pay As You Earn) income tax using both the old PITA system (2025) and the new Nigeria Tax Act (NTA 2026). Enter your salary to see your exact take-home pay, effective tax rate, marginal tax rate, and a full breakdown of deductions including pension, NHF, NHIS, and rent relief. Supports both gross-to-net and net-to-gross reverse calculation.

Whether you need a salary calculator for Nigeria, want to compare PITA vs NTA, calculate employer cost to company, or find your net-to-gross salary, enter your amount above and get instant, FIRS-accurate results. Also known as: Nigeria salary calculator, Nigeria income tax calculator, FIRS PAYE calculator, net pay calculator Nigeria, take-home pay calculator Nigeria.

Common Questions

What are the new Nigeria 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.

Nigeria PAYETax Calculator

Nigeria Tax Calculator — How PAYE Works

Common Questions

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