Nigeria PAYE Tax Calculator 2026 – Calculate Payroll Deductions & Take-Home Pay
The Nigeria PAYE Tax Calculator (free-to-use) was developed to help professionals understand the complex salary calculations and get instant clarity on their monthly income. You can now instantly calculate payroll deductions, pension splits, and tax reliefs without complicated spreadsheets. In just a few clicks, you get an honest, accurate breakdown of your exact take-home pay or your company’s net payroll liabilities from this tool. As a business you can use this tool to calculate the personal income taxes for your employees.
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Developed by – Tax and Accounting Team (Firmus Advisory Nigeria)
All Data and Information Verified by Nigerian Revenue Service
How to Use the PAYE Calculator
Our FREE Nigeria PAYE Tax Calculator is designed to help you quickly estimate your payroll deductions and understand exactly what you’ll take home after tax. Follow these simple steps to get an instant breakdown of your PAYE tax, pension contributions, and net salary in seconds.
- Enter your monthly or annual gross salary.
- Add your allowances and any additional earnings if applicable.
- The calculator will automatically compute your PAYE tax, pension, and statutory deductions.
- Review the full breakdown of your payroll deductions instantly.
- See your estimated take-home pay and plan your finances with confidence.
Nigeria PAYE Tax FAQs
We have provided clear answers to some of the most frequently asked questions by employees and business owners in Nigeria to help you better understand how the PAYE tax system works.
PAYE (Pay As You Earn) is a system where income tax is deducted directly from an employee’s salary by the employer and remitted to the relevant state tax authority.
All salaried employees earning income in Nigeria are generally required to pay PAYE tax in line with the Personal Income Tax Act (PITA). And it is the responsibility of the employer to withhold this tax from the gross salaries of all workers and remit this tax to NRS.
PAYE is calculated based on your gross income after applying statutory reliefs, pension contributions, and approved deductions using the graduated tax bands set by law.
Gross salary is your total earnings before deductions such as tax, pension, NHF, or other statutory contributions are removed.
Net salary is the amount you receive after PAYE tax, pension, and other deductions have been removed from your gross salary.
Yes. The calculator can estimate pension contributions alongside PAYE deductions to provide a more accurate take-home pay estimate.
Yes. Employers deduct PAYE monthly from employee salaries and remit the deductions to the tax authority.
Not all foreigners are required to have an entry visa.
Failure to remit PAYE deductions can attract penalties, fines, and interest charges from the relevant tax authority.
Yes. Bonuses, housing allowances, transport allowances, and other taxable benefits are taxable and subject to PAYE deductions.
The minimum taxable income is 800,000 naira per year. Employees earning below the approved minimum taxable threshold may either pay little tax or be exempt depending on applicable laws and reliefs.
Yes. You can calculate PAYE using either monthly or annual salary figures depending on your preference.
Yes. You can calculate PAYE using either monthly or annual salary figures depending on your preference.
Yes. The calculator is completely free and accessible online for employees, employers, and payroll professionals.
Yes. The calculator is completely free and accessible online for employees, employers, and payroll professionals.
Changes in bonuses, allowances, salary adjustments, pension contributions, or tax reliefs can affect monthly PAYE deductions.
Yes. PAYE serves as personal income tax collected by state tax authorities on employment
income.
Yes. Expatriates working in Nigeria are also subject to PAYE tax depending on their residency status and employment structure.
The calculator is designed to provide close estimates based on current Nigerian PAYE tax rules, though actual deductions may vary depending on employer policies and specific payroll structures.
These include pension contributions, NHF, National Health Insurance Scheme contributions, life assurance premiums, mortgage interest on an owner-occupied house, and rent relief. The old Consolidated Relief Allowance has been removed and replaced with rent relief of 20% of annual
rent paid, capped at ₦500,000, subject to proper declaration/documentation.