PAYE CALCULATOR IN NIGERIA (2026)

This PAYE tax calculator calculate employment PAYE tax payable under the new tax laws of Nigeria, Nigeria Tax Acts 2025, signed into laws by President Bola Ahmed Tinubu on 26th of June, 2025. Effective from January 1, 2026 the Nigeria Tax Act begins to effective.

NIGERIA TAX RATES 2026

S/N MONTHLY BAND (NGN) - ANNUAL BAND (NGN) - TAX RATE (%)

1 First 66,666.67 - First 800,000 - 0%

2 Next 183,333.33 - Next 2,200,000 - 15%

3 Next 750,000 - Next 9,000,000 - 18%

4 Next 1,083,333.33 - Next 13,000,000 - 21%

5 Next 2,083,333.33 - Next 25,000,000 - 23%

7 Above 4,666,666.67 - Above 50,000,000 - 25%

NHIS is 5% and 10% of basic salary contributed by employee and employer respectively; For employer with 10 or more employees.

_________________________________________________________________________________________________________

NHF 2.5% of gross salary contributed by employee. Optional for private sector.

_______________________________________________________________

Pension is 8% and 10% of basic salary, housing allowance and transport allowance, contributed by employee and employer respectively.

_____________________________________________________________________________________________________________

5% WHT deduction for independent consultants.

__________________________________________________

The six eligible deductions from taxable income are:

1. Pension contribution
2. NHF contribution
3. NHIS contribution
4. Mortgage interest on self-occupying house
5. Rent relief of 20% annual rent or 500,000 Naira whichever is lower. Relevant documents may be required.
6. Life insurance premium paid for self or spouse in the previous year

The objective of this template is to provide a simple and efficient monthly paye calculation suitable for Nigerian businesses with up to 200 employees. The template automatically generates paye that allow users to verify the accuracy and completeness of monthly paye data.