Work out your PAYE income tax for 2026 under the Nigeria Tax Act 2025. Enter your salary and rent, and the calculator applies the new tax bands and rent relief, then shows a band-by-band breakdown of exactly where your tax comes from.
Under the Nigeria Tax Act 2025, the first ₦800,000 of annual income is taxed at 0%, then 15% up to ₦3 million, 18% up to ₦12 million, 21% up to ₦25 million, 23% up to ₦50 million and 25% above that. Rent relief of 20% of your rent (capped at ₦500,000) reduces your taxable income, and anyone earning ₦840,000 a year or less pays no PAYE at all. This calculator does that maths for your salary and shows every band, so you can check a payslip or plan your take-home pay. Figures are estimates for guidance, not tax advice.
How to use the PAYE tax calculator
Enter your pay — your gross salary, monthly or yearly.
Add your rent — your annual rent, so the calculator can apply rent relief (20% of rent, capped at ₦500,000).
Read the breakdown — see your taxable income and how much falls into each Nigeria Tax Act band.
See your take-home — your total PAYE and what is left after tax.
What you get
2026 Nigeria Tax Act bands — 0% on the first ₦800,000, then 15%, 18%, 21%, 23% and 25%.
Rent relief included — 20% of your rent, capped at ₦500,000, taken off your taxable income.
Band-by-band breakdown — see exactly how your tax is built up, not just a final number.
Free threshold shown — earn ₦840,000 a year or less and you pay no PAYE.
Frequently asked questions
How is PAYE tax calculated in Nigeria in 2026?
Under the Nigeria Tax Act 2025, the first ₦800,000 of annual income is taxed at 0%, then 15% up to ₦3 million, 18% up to ₦12 million, 21% up to ₦25 million, 23% up to ₦50 million and 25% above that. Rent relief of 20% of your rent (capped at ₦500,000) reduces your taxable income first.
Who pays no PAYE tax in Nigeria in 2026?
Anyone earning ₦840,000 a year or less pays no PAYE at all under the Nigeria Tax Act 2025.
What is rent relief under the new Nigeria tax law?
Rent relief takes 20% of the rent you pay off your taxable income, up to a maximum relief of ₦500,000. Enter your annual rent in the calculator and it applies the relief for you.