PAYE, pension, NHF and rent relief under the Nigeria Tax Act 2025, worked out the same way as WadataHR's payroll. Free, private, and under 60 seconds.
This helps us calculate the right deductions for your situation.
Take-home pay is what's left of your gross salary after pension (8%), PAYE and, if you've chosen it, NHF (2.5% of basic). Under the Nigeria Tax Act 2025, in force from January 2026, the first ₦800,000 of chargeable income a year is tax-free, and anyone earning ₦70,000 a month or less pays no PAYE.
On a ₦300,000 monthly salary, that's ₦24,000 pension and ₦32,180 PAYE, so you take home ₦243,820. Pay rent? Rent relief lowers the tax further.
The old Consolidated Relief Allowance (CRA) is gone. That's why some payslips changed in January 2026: lower earners mostly pay less, and some higher earners pay more.
| Chargeable income a year | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 (to ₦3m) | 15% |
| Next ₦9,000,000 (to ₦12m) | 18% |
| Next ₦13,000,000 (to ₦25m) | 21% |
| Next ₦25,000,000 (to ₦50m) | 23% |
| Above ₦50,000,000 | 25% |
Only the part of your income inside each band is taxed at that band's rate. A raise never leaves you with less take-home.
| Monthly gross | Pension (8%) | PAYE | Take-home |
|---|---|---|---|
| ₦100,000 | ₦8,000 | ₦3,800 | ₦88,200 |
| ₦150,000 | ₦12,000 | ₦10,700 | ₦127,300 |
| ₦200,000 | ₦16,000 | ₦17,600 | ₦166,400 |
| ₦250,000 | ₦20,000 | ₦24,500 | ₦205,500 |
| ₦300,000 | ₦24,000 | ₦32,180 | ₦243,820 |
| ₦400,000 | ₦32,000 | ₦48,740 | ₦319,260 |
| ₦500,000 | ₦40,000 | ₦65,300 | ₦394,700 |
| ₦750,000 | ₦60,000 | ₦106,700 | ₦583,300 |
| ₦1,000,000 | ₦80,000 | ₦148,100 | ₦771,900 |
| ₦2,000,000 | ₦160,000 | ₦338,900 | ₦1,501,100 |
Worked out with WadataHR's payroll engine: a steady salary with pension on the whole gross (basic, housing and transport), no NHF and no reliefs. Checked 19 October 2026.
With rent relief: if you pay ₦1,000,000 a year in rent, your relief is ₦200,000, and PAYE falls by about ₦2,500 to ₦3,000 a month. On ₦300,000, take-home rises from ₦243,820 to ₦246,820.
It's the number they'll actually live on. WadataHR shows an estimated take-home next to the gross pay on every offer, and works out each payslip exactly when payroll runs. Free for up to 5 staff.
Take your gross pay, subtract pension (8% of basic, housing and transport) and NHF if you contribute (2.5% of basic), then subtract reliefs such as rent relief to get chargeable income. Apply the PAYE bands (0% on the first ₦800,000 a year, then 15% to 25%), divide by 12, and subtract that PAYE too. What's left is your take-home pay.
About ₦32,180 a month in PAYE, with ₦24,000 in pension, leaving ₦243,820 take-home, on a steady salary with no NHF or reliefs. Rent relief reduces the PAYE: with ₦1,000,000 a year in rent, it's about ₦29,180.
Employees earning ₦70,000 a month or less pay no PAYE. Everyone also gets the first ₦800,000 of chargeable income a year tax-free, so on ₦100,000 a month the PAYE is only about ₦3,800.
A relief under the Nigeria Tax Act 2025 that replaced the old CRA: 20% of the rent you pay a year, up to ₦500,000, comes off your income before tax is worked out. Give your employer your tenancy details so payroll can apply it.
Yes. Your 8% pension contribution (and NHF, if you contribute) comes off your income before PAYE is worked out, so it lowers your tax. Your employer adds another 10% on top, which isn't taken from your pay.
Not for private-sector employees: since 2023, each employee chooses. If you contribute, it's 2.5% of your basic salary, and it reduces your taxable income. It's compulsory for public-sector staff earning the minimum wage or more.
The Nigeria Tax Act 2025 came into force for January 2026 pay. It replaced the old CRA with rent relief, made the first ₦800,000 of chargeable income tax-free, and introduced new bands from 15% to 25%. Lower earners pay less, middle earners pay about the same unless they claim rent relief, and high earners pay more.
Run a blog, a community or an HR or accounting practice? Put a free take-home calculator on your own page. Copy the code below and paste it where you want the calculator to appear. It updates whenever the tax rules change, so you never have to.
<iframe src="https://www.wadatahr.com/embed/takehome" title="Nigeria take-home pay calculator" width="100%" height="580" style="border:0;max-width:480px;" loading="lazy"></iframe> <p style="font-size:13px;"><a href="https://www.wadatahr.com/takehome">Nigeria take-home pay calculator</a> by WadataHR</p>
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