Pension contribution8% of gross (employee share)
Pension Reform Act 2014 · §11(1). Deductible. NTA §30(2)(a)(i).
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Nigeria PAYE calculator — NTA 2025
The full monthly PAYE calculator under the Nigeria Tax Act 2025, with statutory contributions and a comparison to the old PITA rules. Updates live as you type.
Your salary
per month
What your employer pays you each month, before any deductions. Annual equivalent updates below.
Pension and NHF apply to gross under NTA 2025, so the math is the same. Itemise only if your payslip already is.
Monthly · ₦0
National Housing Fund (NHF)2.5% of basic salary
NHF Act 1992 · §4. Required if your employer has 5+ staff.
Monthly · ₦0
National Health Insurance (NHIA)5% of basic salary
NHIA Act 2022. Only opt in if your employer enrols you.
Monthly · ₦0 if on
Industrial Training Fund (ITF)
ITF Act, as amended. 1% of payroll for employers with 5+ staff and turnover ≥ ₦50M.
Employer cost — not deducted from your take-home.EMPLOYER COST
Life assurance premium
NTA §30(2)(a)(v). On your own life or your spouse’s. Deductible from taxable income.
Per month
Your monthly take-home
₦—
Enter your monthly gross to see your 2026 take-home under NTA 2025.
Adjust statutory contributions on the left to match your payslip. Numbers update as you type — no submit button.
0%up to ₦800k15%800k — 3M18%3M — 12M21%12M — 25M23%25M — 50M25%above 50M
What TaxJeje does with what you typed
01 · No storageWe do not store what you enter unless you sign up. The calculator runs in your browser.
02 · Same as your payrollThe math is identical to what a properly-run Nigerian payroll produces — PAYE plus the statutory contributions every Nigerian payslip carries.
03 · Discrepancy with HRIf your employer’s deductions differ from this calculator, raise the discrepancy with HR and we’ll walk you through it after you sign up.
04 · FX salary, CBN ratesForeign-currency salary is converted using CBN official rates on the date received — the only rate NRS will accept on an assessment.
What this calculator works out
PAYE — Pay As You Earn — is Personal Income Tax collected at source. Your employer works out the tax on your salary, deducts it before paying you, and remits it to your State Internal Revenue Service. The rates are the same NTA 2025 bands everyone else pays; what differs is that you never handle the money.
This calculator starts from your monthly gross and works down to what actually reaches your account. It derives the statutory contributions your employer deducts — pension at 8% of basic, housing and transport, National Housing Fund at 2.5% of basic, and health insurance at 5% of basic — applies rent relief and any other allowable deductions, then charges the remainder through the bands.
One thing PAYE does not do is discharge your filing obligation. Under NTAA §14(3) a salary earner must still file an annual return covering all their income. If you have any income beyond your salary — freelance work, rent received, investments — your annual return aggregates the lot and credits the PAYE your employer already paid.
How to use it
Enter your gross monthly salary
The figure before any deductions, not what lands in your account. If your contract quotes an annual package, divide by twelve.
Split out basic, housing and transport if you know them
Pension is calculated on basic plus housing plus transport, and NHF and NHIS on basic alone — so the split changes the answer. Leave it blank and the calculator uses your full gross, which is the conservative estimate.
Tick the contributions your employer actually deducts
Not every employer runs NHF or NHIS. Tick only the ones on your payslip, or your net pay will come out lower than reality.
Add your annual rent
Rent relief is worth 20% of rent paid, capped at ₦500,000. Many employers do not apply it in payroll, which is a common reason people overpay PAYE across the year.
A worked example
Someone on ₦500,000 a month — ₦6,000,000 a year — with ₦250,000 basic, ₦100,000 housing and ₦50,000 transport, paying ₦1,800,000 rent, on a payroll that runs all three statutory contributions.
| Gross monthly salary | ₦500,000 |
|---|---|
| Gross annual salary | ₦6,000,000 |
| Less pension8% of basic + housing + transport | −₦384,000 |
| Less National Housing Fund2.5% of basic | −₦75,000 |
| Less health insurance5% of basic | −₦150,000 |
| Less rent relief20% of ₦1,800,000, capped at ₦500,000 | −₦360,000 |
| Taxable income | ₦5,031,000 |
| Annual PAYE | ₦695,580 |
| PAYE deducted each month | ₦57,965 |
| Net pay each month | ₦391,285 |
| Effective rate on gross₦695,580 ÷ ₦6,000,000 | 11.59% |
Take-home is ₦391,285 a month once tax and statutory contributions come out. Note that the pension, NHF and NHIS amounts are not lost — they are contributions to your own pension, housing and health cover. Only the ₦57,965 of PAYE is tax. If your employer does not apply rent relief in payroll, your monthly deduction will be higher than this and the difference is recoverable through your annual return.
Rates, deadlines and penalties
What the calculator applies, and the dates that follow from it.
| Band or item | Rate or figure | Notes |
|---|---|---|
| Tax bands | 0% – 25% | Same NTA 2025 bands as all personal income tax. First ₦800,000 of taxable income at 0%. |
| Pension contribution | 8% | Of basic + housing + transport (PRA 2014). Deductible from taxable income. |
| National Housing Fund | 2.5% | Of basic salary. Deductible. |
| Health insurance (NHIS) | 5% | Of basic salary. Deductible. |
| Rent relief | 20% | Of annual rent, capped at ₦500,000. |
| Monthly remittance deadline | 21th | Employer remits the month's PAYE by then (NTAA 2025 §107 (remittance of tax deducted at source)). |
| Employer annual return | 31 January | Employers file an annual PAYE return for all employees (NTAA §14). |
| Failure to deduct | 40% | Administrative penalty on the amount not deducted (NTAA §105). |
Band source: NTA 2025 (No. 7) Fourth Schedule (bands), §30 (reliefs); NTAA 2025 (No. 5) §§65, 100-105 (penalties). Verified against primary gazette. Last verified against the primary gazette on 2026-05-31 (rule set 2026-v4). Remittance and penalty wording is taken verbatim from the citations in the tax engine rather than restated.
Common questions
How is PAYE calculated in Nigeria?
Statutory contributions and reliefs come off your gross first, then the remainder is charged through the NTA 2025 bands and divided by twelve. On ₦500,000 a month the example above produces ₦57,965 of PAYE and ₦391,285 of net pay.
What will my salary be after tax?
Subtract PAYE and your statutory contributions from gross. The example lands at ₦391,285 on a ₦500,000 salary — an effective tax rate of about 11.59%, well under the top band reached.
Do I still have to file a return if my employer deducts PAYE?
Yes. NTAA §14(3) requires a salary earner to file their own annual return regardless of PAYE. It matters most if you have income beyond salary, since the return aggregates everything and credits the PAYE already paid at source.
When must my employer remit my PAYE?
Failing to remit by the 21st means paying the unremitted amount, plus an administrative penalty of 10% per annum, plus interest at the CBN monetary policy rate (NTAA §107).
Why is my payslip deduction higher than this calculator says?
The usual reason is rent relief. It is worth up to ₦500,000 off taxable income, but many payrolls do not apply it because the employer has no record of your rent. The overpayment is recoverable through your annual return.
Is pension deducted before or after tax?
Before. Pension, NHF and NHIS all reduce taxable income, so you are not taxed on them. That is why the split between basic, housing and transport changes your final PAYE — it changes the contribution base.
Do I pay PAYE on a bonus or thirteenth month?
Yes, it is employment income like any other and goes through the same bands. A large one-off payment can push part of your income into a higher band for that year, which is why the annual figure matters more than any single month.
Is this calculator free?
Yes, and there is no sign-up. It runs in your browser — nothing you enter is sent anywhere. A TaxJeje account adds year-round tracking and prepares the annual return PAYE does not cover.