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TAX YEAR 2026 · RATES CHECKED OCTOBER 2026

Nigeria Income Tax Calculator 2026

Enter a Nigerian salary and this calculator applies the personal income tax bands in the Nigeria Tax Act 2025, which took effect on 1 January 2026, then deducts the employee pension contribution and the National Housing Fund. The old relief system has been abolished, so results for 2026 look quite different from earlier years. Two reliefs that still exist in law are not in the calculation, and they are flagged below.

Calculate your Nigeria take-home pay

Income tax and employee contributions, 2026 rates.

Take-home pay / year—
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Estimates for a single employee with standard allowances, calculated in your browser. Rates checked October 2026. Not tax advice.

The system

How income tax works in Nigeria

The Act taxes the first ₦800,000 of chargeable income at 0%, then charges 15% on the next ₦2,200,000, 18% on the next ₦9,000,000, 21% on the next ₦13,000,000, 23% on the next ₦25,000,000 and 25% only on chargeable income above ₦50,000,000. The calculator treats the ₦800,000 zero band as an allowance and applies the bands to income above it. The old Consolidated Relief Allowance has been abolished, the old 7% to 24% scale has gone, and the former 1% minimum tax no longer applies.

Employees contribute 8% of pay to pension and 2.5% to the National Housing Fund. In law the pension is charged on basic salary plus housing and transport allowances, and the housing fund on basic salary, mainly in the public sector and larger formal employers; the calculator applies both to gross pay. Pension and housing fund contributions are deductible before tax in law, and a rent relief of 20% of rent paid, capped at ₦500,000 on declared rent, also exists. Neither is modelled beyond the ₦800,000 band, so the tax shown is higher than the real figure for employees who contribute or claim rent relief. Employees earning no more than the national minimum wage of ₦70,000 a month are exempt from PAYE altogether.

What this calculator leaves out

  • Bands are the Fourth Schedule scale of the Nigeria Tax Act 2025, effective 1 January 2026, confirmed by PwC: first ₦800,000 at 0% (modelled as the allowance), then 15% on the next ₦2,200,000, 18% on the next ₦9,000,000, 21% on the next ₦13,000,000, 23% on the next ₦25,000,000 and 25% above ₦50,000,000 of chargeable income. Bracket up_to values above are cumulative on income after the ₦800,000 band
  • The old Consolidated Relief Allowance and the old 7/11/15/19/21/24% scale were abolished by the 2025 Act; the former 1% minimum tax also no longer applies
  • Employee pension of 8% is charged in law on basic salary plus housing and transport allowances, and the National Housing Fund takes 2.5% of basic salary (mainly public-sector and larger formal employers); both are modelled on gross pay
  • Pension and NHF contributions are deductible in law before tax, and a rent relief of 20% of rent paid (capped at ₦500,000, on declared rent) also exists; neither is modelled beyond the ₦800,000 band, so tax is overstated for employees who claim them. Employees earning no more than the national minimum wage (₦70,000 per month) are exempt from PAYE altogether
Rates

Nigeria tax brackets (2026)

Taxable income bandRate
Up to ₦2,200,00015%
₦2,200,000 – ₦11,200,00018%
₦11,200,000 – ₦24,200,00021%
₦24,200,000 – ₦49,200,00023%
Above ₦49,200,00025%

Bands apply to taxable income — what is left after the tax-free band (first ₦800,000 of chargeable income at 0%) of ₦800,000.

Worked examples

Take-home pay at four salaries in Nigeria

Gross salaryIncome taxSocialTake-homeEffective rate
₦33,836,000₦6,712,280₦3,552,780₦23,570,94030.3%
₦67,671,500₦14,847,875₦7,105,508₦45,718,11832.4%
₦135,343,000₦31,765,750₦14,211,015₦89,366,23534.0%
₦270,686,500₦65,601,625₦28,422,083₦176,662,79334.7%

On ₦67,671,500 a year, take-home pay in Nigeria is ₦45,718,118 — about ₦3,809,843 a month — after ₦14,847,875 in income tax and ₦7,105,508 in social contributions. Salary levels are the local equivalents of US$25,000 / $50,000 / $100,000 / $200,000 at the ECB reference rate of 28 October 2026, rounded.

Payroll contributions

Social contributions in Nigeria

ContributionRateApplies fromApplies up to
Pension contribution 8% First ₦0 No cap
National Housing Fund 2.5% First ₦0 No cap

Employee side only. Employer contributions, where a country charges them, do not come out of your pay and are not in these results.

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FAQ

Nigeria tax — frequently asked questions

The first ₦800,000 of chargeable income is taxed at 0% under the Nigeria Tax Act 2025. Employees earning no more than the national minimum wage, ₦70,000 a month, are exempt from PAYE altogether.
It was abolished by the Nigeria Tax Act 2025, along with the old band scale that ran from 7% to 24% and the former 1% minimum tax. From 1 January 2026 the relief is built into the ₦800,000 zero band instead.
Only on chargeable income above ₦50,000,000 a year. The bands below it are 15%, 18%, 21% and 23%, applied to successive slices of income after the ₦800,000 zero band.
Pension and National Housing Fund contributions are deducted before tax in law, and rent relief of 20% of declared rent, capped at ₦500,000, is also available. This calculator models neither, so it overstates the tax for employees who contribute to a pension or claim rent relief.
Sources & method. Rates and bands: PwC Tax Summaries — Nigeria: Taxes on personal income (Nigeria Tax Act 2025), checked 29 October 2026. The calculator models a single employee using standard allowances only; the full method, including what is left out and why, is on the Methodology page. Estimates only — not tax advice.