Nigeria PAYE Tax Calculator 2025

Calculate accurate take-home pay, pension, and tax deductions compliant with the latest Finance Act.

How is PAYE Calculated in Nigeria?

Personal Income Tax (PAYE) in Nigeria is calculated based on a graduated scale after deducting non-taxable allowances. The Consolidated Relief Allowance (CRA) is the higher of ₦200,000 or 1% of Gross Income, plus 20% of Gross Income. The first ₦800,000 of taxable income is exempt from tax under the Nigeria Tax Act 2025.

PAYE Tax Brackets (Nigeria Tax Act 2025)

Annual Income RangeTax RateTax Amount
First ₦800,000
Tax-free threshold
0% (Exempt)₦0
Next ₦2,200,000
₦800,001 - ₦3,000,000
15%
₦30,000 on ₦200k
(if taxable income is ₦1M)
Next ₦9,000,000
₦3,000,001 - ₦12,000,000
18%-
Next ₦13,000,000
₦12,000,001 - ₦25,000,000
21%-
Next ₦25,000,000
₦25,000,001 - ₦50,000,000
23%-
Above ₦50,000,000
Highest bracket
25%-

Note: Tax is calculated progressively. For example, if your taxable income is ₦1,000,000, you pay 0% on the first ₦800,000 and 15% on the remaining ₦200,000, resulting in ₦30,000 in tax.

Statutory Deductions

Pension
8%
of Gross Income
NHF
2.5%
of Basic Salary
NHIS
5%
of Basic Salary (Optional)

Take Home Pay Calculator

Calculate your estimated take-home pay after tax and statutory deductions.

Assumptions:

  • Pension: 8% of Gross
  • NHF: 2.5% of Basic (40% of Gross)
  • Consolidated Relief Allowance applied
  • Nigeria Tax Act 2025 rates

Disclaimer:

This calculator is for simulation purposes only. Actual take-home pay may vary based on your organization's specific salary structure, additional allowances, deductions, and other factors.

Enter a salary to see the breakdown