How is PAYE calculated in Nigeria for 2026?

Pay-As-You-Earn (PAYE) is computed on your annual chargeable income — your gross salary minus statutory reliefs (employee pension, NHF, NHIS, life insurance and rent relief) — using the progressive tax bands in the Nigeria Tax Act 2025, effective January 2026.

What reliefs reduce my Nigerian PAYE in 2026?

Under the Nigeria Tax Act 2025, the following are deducted from gross income before tax bands are applied: employee pension (8% of basic + housing + transport), NHF (2.5% of basic salary), NHIS / NHIA health insurance contributions, life insurance premiums, and Rent Relief. The old Consolidated Relief Allowance (CRA) and personal allowance have been abolished.

How is Rent Relief calculated under the Nigeria Tax Act 2025?

Rent Relief is the lower of (a) 20% of the annual rent you actually pay for residential accommodation, or (b) ₦500,000 per year. If your employer provides accommodation, no rent relief applies. Keep your tenancy agreement and receipts as evidence.

Is pension deducted before or after tax in Nigeria?

Pension is deducted before tax. Under the Pension Reform Act 2014, the employee's minimum 8% contribution on pensionable emoluments (Basic + Housing + Transport) reduces taxable income. The employer's 10% contribution is on top of your salary and is not deducted from your pay.

What were the 2025 PITA reliefs (Consolidated Relief Allowance)?

Under the Personal Income Tax Act (2025 and earlier), the Consolidated Relief Allowance was the higher of ₦200,000 or 1% of gross income, plus 20% of gross income. Pension, NHF, NHIS and life insurance premiums were also deductible. From January 2026 the NTA 2025 replaces CRA with the targeted Rent Relief.

Does this calculator account for pension and reliefs?

Yes. Pension (8%) and NHF (2.5% of basic) are applied by default because they are statutory for most formal-sector employees. Open the 'Reliefs & deductions' panel to add NHIS, life insurance and rent (2026) or to disable any default. The result is a true chargeable-income calculation.

Is the 10naija tax calculator free?

Yes. All 10naija tools are free to use, with no signup required. The platform is supported by media and advertising.

Nigerian PAYE Tax Calculator (2026)

Free PAYE calculator using Nigeria's 2026 tax bands. Enter your annual income — we deduct statutory reliefs (pension, NHF, rent relief, NHIS, life insurance) before applying tax, just like real Nigerian payroll.

Key facts: Under the Nigeria Tax Act 2025 (effective Jan 2026) the Consolidated Relief Allowance is replaced by Rent Relief (lower of 20% of rent or ₦500,000). Employee pension (8% of Basic + Housing + Transport), NHF (2.5% of basic), NHIS, and life-insurance premiums remain deductible before tax. The 2025 (PITA) option still applies CRA = max(₦200k, 1% of gross) + 20% of gross.

Read our plain-English summary of the Nigeria Tax Act 2025 →

Your details

Annual Income

₦

Tax Year

Reliefs shown are statutory minimums — your actual payroll may differ. This calculator is for guidance only; consult a tax professional for definitive advice.

Chargeable Income

₦0

no reliefs applied

Total Tax Due

₦0

Effective Rate

0.00%

Monthly Take-home

₦0

Reliefs & deductions applied

Subtracted from gross income before tax bands are applied.

Employee pension (8%)—

NHF (2.5% of basic)—

NHIS / health insurance—

Life insurance premium—

Rent Relief (capped ₦500k)—

Total reliefs−₦0

Gross − reliefs = chargeable₦0

Tax band breakdown

Applied to chargeable income.

First ₦800,000

Amount in band

₦0

Tax

₦0

Total tax₦0

Annual take-home₦0

Band	Rate	Amount in band	Tax
First ₦800,000	0%	₦0	₦0
Total tax			₦0
Annual take-home			₦0

New to the 2026 tax changes?

Read our plain-English summary of the Nigeria Tax Act 2025 and download the official Federal Government Gazette PDF.

Read the Tax Act 2025 summary →

PAYE in Nigeria — frequently asked questions

How is PAYE calculated in Nigeria for 2026?: Pay-As-You-Earn (PAYE) is computed on your annual chargeable income — your gross salary minus statutory reliefs (employee pension, NHF, NHIS, life insurance and rent relief) — using the progressive tax bands in the Nigeria Tax Act 2025, effective January 2026.
What reliefs reduce my Nigerian PAYE in 2026?: Under the Nigeria Tax Act 2025, the following are deducted from gross income before tax bands are applied: employee pension (8% of basic + housing + transport), NHF (2.5% of basic salary), NHIS / NHIA health insurance contributions, life insurance premiums, and Rent Relief. The old Consolidated Relief Allowance (CRA) and personal allowance have been abolished.
How is Rent Relief calculated under the Nigeria Tax Act 2025?: Rent Relief is the lower of (a) 20% of the annual rent you actually pay for residential accommodation, or (b) ₦500,000 per year. If your employer provides accommodation, no rent relief applies. Keep your tenancy agreement and receipts as evidence.
Is pension deducted before or after tax in Nigeria?: Pension is deducted before tax. Under the Pension Reform Act 2014, the employee's minimum 8% contribution on pensionable emoluments (Basic + Housing + Transport) reduces taxable income. The employer's 10% contribution is on top of your salary and is not deducted from your pay.
What were the 2025 PITA reliefs (Consolidated Relief Allowance)?: Under the Personal Income Tax Act (2025 and earlier), the Consolidated Relief Allowance was the higher of ₦200,000 or 1% of gross income, plus 20% of gross income. Pension, NHF, NHIS and life insurance premiums were also deductible. From January 2026 the NTA 2025 replaces CRA with the targeted Rent Relief.
Does this calculator account for pension and reliefs?: Yes. Pension (8%) and NHF (2.5% of basic) are applied by default because they are statutory for most formal-sector employees. Open the 'Reliefs & deductions' panel to add NHIS, life insurance and rent (2026) or to disable any default. The result is a true chargeable-income calculation.
Is the 10naija tax calculator free?: Yes. All 10naija tools are free to use, with no signup required. The platform is supported by media and advertising.