Updated for the Nigeria Tax Act 2025
Salary tax calculator 2026
See your take-home pay under the new tax law, how it compares with last year, and the salary you need to reach a target.
You pay no income tax. The first ₦800,000 of taxable income each year is tax-free.
| Monthly | Yearly |
|---|
How your tax is worked out
The 2026 income tax bands
| Yearly taxable income | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 (up to ₦3m) | 15% |
| Next ₦9,000,000 (up to ₦12m) | 18% |
| Next ₦13,000,000 (up to ₦25m) | 21% |
| Next ₦25,000,000 (up to ₦50m) | 23% |
| Above ₦50,000,000 | 25% |
Each rate applies only to the part of your income inside that band, so a raise never lowers your take-home pay.
Common questions
What changed in 2026?
The Nigeria Tax Act 2025 replaced the old six bands (7% to 24%) and the Consolidated Relief Allowance. The first ₦800,000 of taxable income is now tax-free, the top rate is 25%, and rent relief replaced the old allowance. Anyone earning up to about ₦1.5 million a month takes home more; above that, tax is slightly higher.
Do I pay tax on the minimum wage?
No. If your taxable income is ₦800,000 a year or less, you pay no income tax.
How do I claim rent relief?
Tell your employer (or the tax office if you file yourself) how much rent you actually pay, and keep your tenancy agreement and receipts. The relief is 20% of yearly rent, up to ₦500,000.
Why is my payslip slightly different?
Employers may treat some allowances differently, add other deductions (such as health insurance or loans), or round each month. Use the payslip breakdown option for a closer figure.
Who collects the tax?
Your employer deducts it each month (PAYE) and pays it to the tax authority of the state where you live. The federal agency is now called the Nigeria Revenue Service (NRS), formerly FIRS.
Estimate based on the Nigeria Tax Act 2025 for employment income. The old-law comparison uses the Personal Income Tax Act rules that applied up to 2025 and is approximate. Not tax advice; confirm your position with your state tax office or the Nigeria Revenue Service.