Nigeria Tax Calculator 2026
Work out your true take-home pay under the Nigeria Tax Act 2025, the new 0% band, rent relief, minimum-wage exemption, and an old-vs-new comparison so you can see exactly how much the new law saves you. Free, no sign-up, works on any phone.
| Taxable income band | Rate | Income in band | Tax on that band | Cumulative PAYE |
|---|---|---|---|---|
| ₦0 - ₦800,000 | 0% | ₦800,000 | ₦0 | ₦0 |
| ₦800,000 - ₦3,000,000 | 15% | ₦2,200,000 | ₦330,000 | ₦330,000 |
| ₦3,000,000 - ₦12,000,000 | 18% | ₦312,000 | ₦56,160 | ₦386,160 |
| Income bracket | Old (2023) | New (NTA 2025) | Change |
|---|---|---|---|
| ₦0 - ₦800,000 | 7% | 0% | ▲ 7% |
| ₦800,000 - ₦3,000,000 | 19% | 15% | ▲ 4% |
| ₦3,000,000 - ₦12,000,000 | 24% | 18% | ▲ 6% |
| ₦12,000,000 - ₦25,000,000 | 24% | 21% | ▲ 3% |
| ₦25,000,000 - ₦50,000,000 | 24% | 23% | ▲ 1% |
| ₦50,000,000 - above | 24% | 25% | ▼ 1% |
| Gross annual income | ₦3,600,000 |
| Pension (employee) | −₦288,000 |
| National Housing Fund (NHF) | ₦0 |
| NHIS (health insurance) | ₦0 |
| Life assurance | ₦0 |
| Other reliefs | ₦0 |
| Rent relief (20% of rent, cap ₦500k) | ₦0 |
| Taxable income | ₦3,312,000 |
| PAYE tax (annual) | −₦386,160 |
| Take-home pay (annual) | ₦2,925,840 |
| Take-home pay (monthly) | ₦243,820 |
₦300,000 salary after tax in 2026
₦243,820 a month, that is the new take-home under the Nigeria Tax Act 2025 for a ₦300,000 gross salary at the minimum 8% pension. Use the calculator with your own numbers and rent to get your exact figure.
₦500,000 salary after tax in 2026
₦394,700 a month at the minimum pension. Add your annual rent above to see how rent relief reduces your taxable income further.
₦1,000,000 salary after tax in 2026
₦771,900 a month at the minimum pension. The old-vs-new comparison card above shows your exact savings under the new law.
How is PAYE calculated under the new law?
Your annual gross is reduced by pension, NHF and rent relief (20% of annual rent, capped at ₦500,000). What remains is your taxable income, which is taxed on graduated bands, 0% on the first ₦800,000, then 15% up to ₦3,000,000, 18% up to ₦12,000,000, 21% up to ₦25,000,000, 23% up to ₦50,000,000 and 25% above that.
What is the new rent relief?
The Nigeria Tax Act 2025 replaces the old Consolidated Relief Allowance (₦200,000 + 20% of gross) with a rent relief of 20% of your annual rent, capped at ₦500,000. If you pay ₦2,400,000 a year in rent, you get ₦480,000 off your taxable income. Enter your annual rent above to see the effect.
How the Nigeria Tax Act 2025 changes your pay
The Nigeria Tax Act 2025 (NTA 2025), in force since 1 January 2026, is the biggest change to personal income tax in Nigeria in decades. It was designed to leave the lowest earners completely untaxed, widen the tax-free threshold for everyone, and simplify how allowances work, and for most workers it results in more take-home pay.
The new 0% band, most people now start at zero
Under the old law, tax started from the first naira of taxable income at 7%. NTA 2025 sets a 0% band on the first ₦800,000 of annual taxable income, so a big slice of every salary is now completely tax-free before any higher bands apply. Employees earning the national minimum wage (₦70,000 a month or less) are fully exempt and pay no PAYE at all.
Rent relief replaces the old allowance
The old Consolidated Relief Allowance, the flat ₦200,000 plus 20% of gross income that everyone claimed, is gone. In its place is a rent relief worth 20% of your annual rent, capped at ₦500,000. That is a real shift: someone who pays no rent (living rent-free or in staff quarters) no longer gets an automatic allowance, while tenants get a deduction that scales with what they actually pay. This is one of the biggest reasons your take-home under the new law can differ from the old figures.
Wider bands, higher top rate
The tax bands are now far wider, 15% on income up to ₦3,000,000, 18% up to ₦12,000,000, 21% up to ₦25,000,000, 23% up to ₦50,000,000 and 25% above that, so your effective rate stays lower for longer. Only the very highest earners reach the new 25% top rate (up from 24% before).
Type your salary and rent into the calculator above and flip between the old and new columns to see exactly what the law change means for your personal take-home, every figure is computed live from the official bands.
Want the whole story behind the new tax law? These in-depth guides walk through each change with worked examples for Nigerian workers.
New in-depth guides are coming soon, check back shortly.
Nigerian tax calculator questions
What changed in the Nigeria Tax Act 2025?
The first ₦800,000 of annual income is now tax-free (0% band). The old Consolidated Relief Allowance (CRA) is replaced by a rent relief of 20% of annual rent, capped at ₦500,000. Employees earning ₦70,000 a month or less pay zero PAYE. The top rate is now 25% instead of 24%.
How do I claim rent relief?
Enter your annual rent in the calculator. The relief is automatically applied, 20% of your annual rent, up to ₦500,000. Your employer would normally adjust your PAYE for this in the official filing.
Is this the official FIRS figure?
No. This is a clear estimate using the current NTA 2025 bands for planning. Your employer and tax consultant use your exact scheme, reliefs and deductions for the official filing.
What pension rate should I use?
The minimum employee contribution is 8% of your basic salary. Many people contribute more, pick the rate on your payslip.
What is the NHF limit?
The National Housing Fund is 2.5% of your basic salary, capped at ₦15,000 a month. If your employer deducts it, add that amount here.
This calculator is for informational guidance only and is not tax, financial or investment advice. Tax rules and personal circumstances vary, confirm your figures with a licensed tax professional.