Nigeria Salary Calculator 2026: Net Pay after PAYE, Pension and NHF
Calculate your take-home pay in Nigeria for 2026: PAYE under the new tax law, 8% pension, NHF, NHIS, rent relief and the cost for the employer.
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PAYE is the yearly tax on the salary ÷ 12. The pension is 8% of basic, housing and transport; the employer adds 10% and 1% for the Employees' Compensation Scheme (and 1% for the ITF with 5 or more staff). PAYE is paid to the tax office of the state where you live.
What it does
From 1 January 2026 employees in Nigeria pay income tax under the Nigeria Tax Act 2025. The employer deducts it monthly as PAYE (pay as you earn), after the eligible deductions: the 8% contribution to your retirement savings account, the National Housing Fund, health insurance and a rent relief of 20% of the rent you pay, up to ₦500,000 a year. The old consolidated relief allowance no longer exists.
How to use it
- Type your basic salary and the housing, transport and other allowances of the month.
- Add the rent you pay in a year, the NHF and any NHIS or voluntary pension.
- Read the net pay, PAYE, pension and the cost for the employer.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
What is the take-home pay on ₦500,000 a month in 2026?
With ₦400,000 of basic, housing and transport, ₦100,000 of other allowances and ₦1,200,000 of rent a year: the pension is ₦32,000 (8%), rent relief ₦240,000 a year, chargeable income ₦5,376,000 and the tax ₦757,680 a year, so PAYE is ₦63,140 a month and the net pay ₦404,860.
Who pays no PAYE under the new tax law?
The first ₦800,000 of chargeable income a year is taxed at 0%, and employment income of the national minimum wage (₦70,000 a month) or less is exempt. With only the 8% pension deducted, PAYE starts at about ₦72,500 a month.
What changed in 2026?
The Nigeria Tax Act 2025 replaced the consolidated relief allowance with a rent relief of 20% of the rent paid (at most ₦500,000) and set new bands from 0% to 25% from 1 January 2026. Pension, NHF and NHIS contributions are still deducted.
๐งพ Nigeria Income Tax Calculator 2026 (Nigeria Tax Act 2025)
๐ฆ Nigeria Pension Calculator: RSA Contributions and Retirement Savings
๐ข Nigeria Company Income Tax Calculator 2026 (CIT and Development Levy)
๐งฎ Nigeria VAT Calculator 2026: Add or Remove 7.5% VAT