Nigeria PAYE Calculator
Calculate your monthly PAYE tax liability under current PITA 2011 rules and compare with proposed NTA 2025 reforms.
How PAYE Tax Works in Nigeria (2026)
Last Updated: feb 23, 2026What is PAYE?
PAYE (Pay As You Earn) is the tax system used in Nigeria for employees. Your employer deducts income tax from your salary every month and sends it directly to the government. No stress, no queues — the money leaves your account before you even see it.
How is PAYE Calculated in 2026?
The new 2026 tax law introduced major changes to help workers keep more money. Here's the breakdown:
- Exemption Threshold: If you earn ₦800,000 or less per year(about ₦67k-₦70k monthly), you pay 0% tax. Touch your chest and relax!
- Consolidated Relief Allowance (CRA): This is a tax-free allowance that reduces your taxable income. The higher your salary, the higher your CRA.
- Progressive Tax Rates: Nigeria uses a progressive system — the more you earn, the higher your tax rate on the excess amount.
2026 PAYE Tax Rates
| Annual Income | Tax Rate |
|---|---|
| First ₦300,000 | 7% |
| Next ₦300,000 | 11% |
| Next ₦500,000 | 15% |
| Next ₦500,000 | 19% |
| Next ₦1,600,000 | 21% |
| Above ₦3,200,000 | 24% |
Who is Exempt from PAYE?
You don't pay PAYE if:
- Your annual salary is ₦800,000 or less
- You're a minimum wage earner (₦70,000/month)
- After applying CRA and other reliefs, your taxable income drops to zero
Why Use This Calculator?
Our PAYE calculator is updated with the 2026 Nigeria tax law. It automatically applies all relief allowances (CRA, transport, rent) so you see your exact monthly deduction. No guesswork, no surprises — just accurate numbers you can trust.
💡 Pro Tip: If your employer is deducting more PAYE than this calculator shows, they might be using outdated 2025 rates. Show them this tool and ask for a review!
Confused about the 2026 rates?
Lagos State just adjusted their tax rules for 2026 residents. It might affect your take-home!
Read our 2-minute Lagos Tax Guide →