Personal Income TaxCalculator

Under the 2026 Nigerian tax reform, the first ₦800,000 of annual income is completely tax-free. This means if you earn ₦800,000 or less per year (about ₦66,667 per month), you pay zero income tax.

Nigeria's 2026 tax reform introduced new progressive tax bands: 0% on first ₦800,000, 15% on ₦800,001 to ₦3,000,000, 18% on ₦3,000,001 to ₦12,000,000, 21% on ₦12,000,001 to ₦25,000,000, 23% on ₦25,000,001 to ₦50,000,000, and 25% on income above ₦50,000,000.

To calculate PAYE: 1) Start with gross annual income, 2) Subtract tax-deductible contributions (pension 8%, NHIS 5%, NHF 2.5%), 3) Apply the Consolidated Relief Allowance (₦200,000 + 20% of gross), 4) Apply progressive tax bands to taxable income. Our free calculator does this automatically.

Tax-deductible items include: Pension contributions (8% of basic), National Health Insurance (5% of basic), National Housing Fund (2.5% of basic), Life insurance premiums, and Consolidated Relief Allowance (₦200,000 or 1% of gross income, plus 20% of gross income).

PAYE (Pay As You Earn) is the method by which employers deduct personal income tax from employee salaries monthly and remit to FIRS. Personal Income Tax is the broader category that includes PAYE for employed individuals and direct assessment for self-employed individuals.

For PAYE, employers must remit deducted tax by the 10th of the following month. Self-employed individuals must file annual returns by March 31st. Companies must file within 6 months of their accounting year end.