Nigeria PAYE calculator (Nigeria Tax Act 2025)

How salary after tax in Nigeria is calculated

The **Nigeria Tax Act 2025** took effect on **1 January 2026**, replacing the Personal Income Tax Act. Chargeable income is your pay less the eligible deductions of section 30: your **pension** contribution under the Pension Reform Act, any **National Housing Fund** contribution, contributions under the national health insurance scheme and a **rent relief** of 20% of the rent you pay, at most **₦500,000**. The old consolidated relief allowance is gone. The Fourth Schedule then charges **0%** on the first ₦800,000, **15%** on the next ₦2.2 million, **18%** on the next ₦9 million, **21%** on the next ₦13 million, **23%** on the next ₦25 million and **25%** above ₦50 million.

On **₦500,000 a month** — ₦300,000 basic and ₦150,000 housing and transport — with ₦1.2 million of rent, the year’s pay is ₦6 million. Pension is 8% of ₦5.4 million (₦432,000) and rent relief ₦240,000, leaving ₦5,328,000 chargeable. Tax is ₦330,000 + 18% of ₦2,328,000 = **₦749,040**, so take-home is **₦401,580** a month. Contributing 2.5% of basic to the NHF (₦90,000) brings the tax to ₦732,840 and take-home to ₦395,430.

Employment income of the national minimum wage or less is exempt (sections 58 and 162(1)(t)). The page uses ₦70,000 a month, the figure of the 2024 amendment to the National Minimum Wage Act, as an input because that Act’s text was not found on an official site. Pension (8% of at least basic, housing and transport) is compulsory where an employer has 15 or more staff. Since the Business Facilitation Act 2022 replaced section 4 of the NHF Act, the 2.5% NHF contribution is reported to be compulsory only for public-sector workers at or above the minimum wage and voluntary in the private sector, so it is off by default. Life-assurance premiums and mortgage interest are also deductible but not modelled. Estimate, not tax advice.