PAYE Calculator
Enter a gross salary to see the estimated monthly and annual PAYE tax, with a full breakdown by tax band — updated for the Nigeria Tax Act 2025.
PAYE Calculator
Updated for the Nigeria Tax Act 2025 (effective 1 Jan 2026)
Rent relief is the lower of 20% of rent paid or ₦500,000/year.
This is an estimate based on gross salary, rent relief, pension, and NHF only. It does not account for NHIS, life assurance premiums, approved donations, or benefits-in-kind — for exact payroll figures, run it through KalHR.
Deductions before tax
Tax band breakdown
Frequently asked questions
How is PAYE calculated in Nigeria under the new tax law?
PAYE is calculated by deducting Rent Relief and statutory contributions like pension and NHF from gross income, then applying the Nigeria Tax Act 2025's progressive tax bands (0% to 25%) to the remaining taxable income.
What replaced the Consolidated Relief Allowance (CRA)?
The CRA was fully repealed by the Nigeria Tax Act 2025, effective 1 January 2026. It was replaced by Rent Relief — a deduction equal to the lower of 20% of annual rent paid or ₦500,000, which requires a lease agreement and rent receipts as proof.
Is everyone exempt from tax on their first ₦800,000?
The first ₦800,000 of taxable income is taxed at 0% for everyone. Separately, employees earning at or below the national minimum wage (₦840,000/year) are fully exempt from PAYE regardless of the band structure.
Is this calculator accurate for payroll?
This tool gives a close estimate based on gross salary, rent relief, pension, and NHF. It doesn't account for NHIS, life assurance premiums, approved donations, or benefits-in-kind — for exact, audit-ready payroll figures, run your payroll through KalHR.
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