PAYE Tax Calculator
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Monthly gross in NGN. Updates as you type - no page reload.
How Nigerian PAYE tax is calculated in 2026
Pay-As-You-Earn (PAYE) is the tax the Nigerian Federal Inland Revenue Service applies to employment income under the Personal Income Tax Act. It's calculated on chargeable income - your gross salary minus the Consolidated Relief Allowance (CRA) and any statutory reliefs - then run through a progressive rate table.
The CRA is the higher of NGN 200,000 per year or 1% of your gross annual pay, plus a flat 20% of gross annual pay. Everything under this threshold is tax-free.
Whatever remains is taxed at progressive rates: 7% on the first NGN 300,000, 11% on the next NGN 300,000, 15% on the next NGN 500,000, 19% on the next NGN 500,000, 21% on the next NGN 1,600,000, and 24% on anything above NGN 3,200,000. State inland revenue agencies collect via employer PAYE returns.
Frequently asked questions
Is the PAYE calculator accurate for 2026?
Yes - we implement the progressive bands under the Personal Income Tax Act and the standard CRA formula. State inland revenue agencies may apply small variations (extra relief documentation, for example) but the headline math is identical.
Does this include pension and NHF?
No - this tool is PAYE-only. For pension (8%), NHF (2.5%) and optional NHIS (5%) alongside your take-home figure, use the Take-Home Pay Calculator.
How are bonuses taxed?
Bonuses are taxed in the month they're paid. Because PAYE is progressive on annualised income, a one-off bonus often pushes that month's taxable amount into a higher band - your employer applies the appropriate rate at source.
What if I have multiple sources of income?
You must aggregate all employment income and file an annual return. Each employer applies PAYE on their portion, but you're responsible for reconciliation. Freelance income is subject to withholding tax at source (typically 5-10% depending on service type).