Free · Nigeria
PAYE calculator, current rules
Enter a salary and see the take-home, the PAYE, and what it actually costs you as an employer.
Take-home a month
₦356,980
PAYE a month
₦57,020
Other deductions
₦36,000
Effective tax rate
12.67%
What it costs you as an employer
- Gross pay
- ₦450,000
- Pension (10%)
- ₦45,000
- Employee Compensation Scheme (1%)
- ₦4,500
- Total cost to employ
- ₦499,500
How this was worked out
- Annual gross: ₦5,400,000
- Less pension contribution: ₦432,000
- Chargeable income: ₦4,968,000
- ₦0 – ₦800,000 at 0%
- ₦800,000 – ₦3,000,000 at 15%
- ₦3,000,000 – ₦12,000,000 at 18%
- ₦12,000,000 – ₦25,000,000 at 21%
- ₦25,000,000 – ₦50,000,000 at 23%
- Above ₦50,000,000 at 25%
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See howThe part nobody explains
What changed
The consolidated relief allowance is gone. It used to take a fixed slice off everyone's income before tax; it has been replaced by rent relief, which is 20% of the rent you actually pay, capped, and only if you pay rent.
The bands changed with it. The first ₦800,000 of chargeable income a year is now taxed at nothing, which takes a large number of people out of PAYE entirely once pension is deducted.
How the bands work
Each rate applies only to the slice of income inside its band, not to the whole salary. Someone earning just into the 18% band does not pay 18% on everything — they pay 0% on the first slice, 15% on the next, and 18% only on what is above.
This is why a raise never leaves you worse off, whatever anyone tells you at the office.
Pension and NHF
The employee's pension contribution is 8% of pay and comes off before tax is worked out. The employer adds 10% on top, which is a cost to the business rather than a deduction from the employee.
The National Housing Fund is 2.5% where it applies. It also comes off before tax.
What you still have to do
PAYE is remitted monthly by the employer, and the annual returns are due in January. This calculator works out the figures; it does not file anything.
Questions
Is this the current rate?
It follows the Nigeria Tax Act 2025, in effect from 1 January 2026. The rules used are printed under every result so you can check them against the Act rather than take our word for it.
Does it handle bonuses and allowances?
Enter the gross including them. PAYE is worked out on total emoluments, not basic pay alone.
Should I use this instead of an accountant?
No. Use it to know roughly where you stand, and to check that a figure you were given is in the right region. Filing is still your accountant's job.