Free tool
PAYE calculator 2026
Work out the PAYE on your salary under the Nigeria Tax Act 2025. Enter your gross pay, rent and pension to see your monthly and annual tax, band by band.
Your PAYE
Enter your gross pay to see your PAYE.
This is a guide, not tax or legal advice. The figure from your employer’s payroll and your state internal revenue service is the one that counts.
The 2026 rules
These are the figures the calculator uses. The Nigeria Revenue Service (NRS), formerly FIRS, and the state revenue services apply them. Each links to where we found it.
First PAYE band under the Nigeria Tax Act 2025
0% on the first ₦800,000 a year
Source: Nigeria Tax Act, 2025 (Act No. 7), certified text edited 1 Jan 2026 — National Assembly of Nigeria · Last checkedSecond PAYE band
15% on income from ₦800,001 to ₦3 million
Source: Nigeria Tax Act, 2025 (Act No. 7), certified text edited 1 Jan 2026 — National Assembly of Nigeria · Last checkedThird PAYE band
18% on income from ₦3 million to ₦12 million
Source: Nigeria Tax Act, 2025 (Act No. 7), certified text edited 1 Jan 2026 — National Assembly of Nigeria · Last checkedFourth PAYE band
21% on income from ₦12 million to ₦25 million
Source: Nigeria Tax Act, 2025 (Act No. 7), certified text edited 1 Jan 2026 — National Assembly of Nigeria · Last checkedFifth PAYE band
23% on income from ₦25 million to ₦50 million
Source: Nigeria Tax Act, 2025 (Act No. 7), certified text edited 1 Jan 2026 — National Assembly of Nigeria · Last checkedTop PAYE band
25% on income above ₦50 million
Source: Nigeria Tax Act, 2025 (Act No. 7), certified text edited 1 Jan 2026 — National Assembly of Nigeria · Last checkedRent relief under the Nigeria Tax Act 2025
20% of annual rent paid, capped at ₦500,000
Source: Nigeria Tax Act, 2025 (Act No. 7), certified text edited 1 Jan 2026 — National Assembly of Nigeria · Last checkedStatus of the consolidated relief allowance (CRA)
abolished from 1 January 2026
Source: Nigeria PAYE bands (2026) explained simply — TaxCalc.ng · Last checkedMonthly PAYE remittance deadline
the 10th day of the following month
Source: LIRS – FAQS - Lagos State Internal Revenue Service · Last checked
For monthly PAYE, VAT and withholding tax dates, see the compliance calendar.
Questions about PAYE
Who collects PAYE in Nigeria?
For most employees, PAYE goes to the state internal revenue service of the state where the employee lives, not the state where the employer is based. Your employer deducts it from your pay each month and remits it for you.
What changed for PAYE in 2026?
The Nigeria Tax Act 2025 replaced the old bands. The consolidated relief allowance (CRA) was abolished from 1 January 2026. In its place there is rent relief: 20% of annual rent paid, capped at ₦500,000. The new bands start at 0% on the first ₦800,000 a year.
Is the result exact?
No. It is a guide based on the figures you enter. Your employer’s payroll may treat some allowances, benefits or reliefs differently, and the figure your state revenue service works out is the one that counts.
When do employers remit PAYE?
Employers remit PAYE by the 10th day of the following month, to the state internal revenue service where each employee lives. The compliance calendar on this site lists the dates for the next 12 months.
Does rent relief happen automatically?
Not always. You usually need to show your employer or the state revenue service proof of the rent you paid, such as a tenancy agreement and receipts, before it is applied.