Pay clarity.NIGERIA · 2026 TAX RULES

Know what comes
home with you.

Enter your gross salary. See your estimated tax, pension and take-home pay instantly.

Start with your salary

₦

Default pension basis: basic + housing + transport = 65% of gross. Refine below to match your contract.

Refine your calculation

Use the share specified by your salary structure, at least basic + housing + transport. Use 100 for full-gross pension contributions.

Rent relief is 20% of annual rent, capped at ₦500,000.

Actual employee contributions deducted from pay. Employer-paid cover is not an employee deduction.

Qualifying prior-year premiums paid by you, outside this payroll.

Qualifying loan for developing an owner-occupied home; assumed paid outside payroll.

Loans, advances, etc. These do not reduce taxable income.

Your estimated take-home pay

PER MONTH₦0.00

Enter your salary to get started.

Gross pay₦0.00
PAYE income tax₦0.00
Employee pension₦0.00
NHF + NHIS₦0.00
Other deductions₦0.00
Lilac: take-home · Dark: tax · Light: other deductions
See the annual tax calculation
Annual gross₦0.00
Eligible deductions & reliefs₦0.00
Annual taxable income₦0.00
Annual bandRateTax
Total annual PAYE₦0.00
What does my employer contribute?

Employer pension is an additional company cost. It does not come out of your take-home pay.

Employer pension / month (10%)₦0.00
Combined pension / month₦0.00

Your salary inputs stay in this page. No account needed; inputs are not saved or sent to a server.

A little context behind the numbers.

This estimate uses Nigeria’s 2026 progressive tax bands: the first ₦800,000 of taxable annual income at 0%, then 15%, 18%, 21%, 23% and 25%. Gross employment income of ₦70,000 a month or less is exempt. Employee pension is 8% of the pension basis you select; employer pension is 10%.

Assumptions, eligibility & sources

Gross pay alone gives an estimate. Pensionable pay and eligible contributions differ between employees. The initial 65% pension basis comes from the supplied payroll template’s basic (25%), housing (25%) and transport (15%) split; it is not a statutory salary split. Change it to match your contract. NHF and NHIS start at zero; enter confirmed employee payments where applicable.

Monthly salary is annualised over 12 months, deductions are subtracted, and tax is calculated progressively. Rent relief reduces taxable income, not salary directly. Life-insurance and housing-loan interest entries are relief only, assumed paid outside payroll. Claims must satisfy the relevant tax authority’s requirements and be supported by evidence.

For steady, full-year Nigerian employment income. Mid-year salary changes, joining or leaving during the year, arrears, benefits in kind, multiple jobs and special exemptions need additional payroll reconciliation. Displayed amounts are rounded to two decimal places. Rules checked 29 October 2026.

Nigeria Tax Act 2025 — sections 30–32, 58, 162 and Fourth Schedule
PenCom pension guidance
National minimum-wage reference