NIGERIA
Capital:
FCT - Abuja
Currency:
Naira (NGN - ₦)
Time Zone:
UTC+1
Coat of Arms:
Unity & Faith, Peace & Progress

Nigeria New Tax Law 2026 Calculator

Published: 16-November-2024
SEE ALSO:  Ghana PAYE Calculator  |  Kenya PAYE Calculator  |  Loan Calculator  |  Income Tax Calculator   |  Salary Calculator  
VIDEO:    How to use tax calculator
₦
₦
₦
₦
₦
%
%
%
%
₦
  Red * indicates required input.
Datamass Nigeria Limited
Payslip for OCTOBER 2025
Felix ADEJIMI
PAY ITEMS ₦ ₦
Basic Salary 100,000.00
Total Pay 100,000.00
Less:
Pension 8,000.00
PAYE Tax 2,300.00
Total Deductions                   ( 10,300.00 )
Net Pay 89,700.00
                     
Eighty-Nine Thousand Seven Hundred Naira Only [= NGN 89,700.00 ]
Chargeable Income (₦): 82,000.00
Employer Pension (₦): 10,000.00
Effective Tax Rate (%): 2.3000 %
Average Tax Rate (%): 2.8049 %
Marginal Tax Rate (%): 15.00 %

Nigeria New Tax Law 2026 Calculator

This PAYE tax calculator calculate employment PAYE tax payable under the new tax laws of Nigeria, Nigeria Tax Act 2025, signed into laws by President Bola Ahmed Tinubu.

Both houses of the National Assembly passed the Tax Reform Bills on 13th of March, 2025. President Tinubu signed the Bills into Laws on 26th of June, 2025. Effective from January 1, 2026 the Nigeria Tax Act begins to effective.

The four new tax laws are as follows:

  1. Nigeria Tax Act, 2025
  2. Nigeria Tax Administration Act, 2025
  3. Nigeria Revenue Service Act, 2025
  4. Joint Revenue Board Act, 2025
While NTA and NTAA become effective next year, 2026, NRSA and JRBA take effect immediately.

NIGERIA TAX RATES 2026
S/N MONTHLY BAND (NGN) ANNUAL BAND (NGN) TAX RATE (%)
1 First 66,666.67 First 800,000 0%
2 Next 183,333.33 Next 2,200,000 15%
3 Next 750,000 Next 9,000,000 18%
4 Next 1,083,333.33 Next 13,000,000 21%
5 Next 2,083,333.33 Next 25,000,000 23%
7 Above 4,666,666.67 Above 50,000,000 25%
NHIS is 5% and 10% of basic salary contributed by employee and employer respectively;
For employer with 10 or more employees.
NHF 2.5% of gross salary contributed by employee. Optional for private sector.
Pension is 8% and 10% of basic salary, housing allowance and transport allowance, contributed by employee and employer respectively.
5% WHT deduction for independent consultants.
The six eligible deductions from taxable income are:
  1. Pension contribution
  2. NHF contribution
  3. NHIS contribution
  4. Mortgage interest on self-occupying house
  5. Rent relief of 20% annual rent or 500,000 Naira whichever is lower. Relevant documents may be required.
  6. Life insurance premium paid for self or spouse in the previous year
    7. s
National minimum wage earners are tax-exempt.
Salaries of military officers are tax-exempt.
Employment compensation not exceeding N50M not chargeable to income tax. However, excess is chargeable to tax.
Read more on Nigeria Tax Reform Bills here PAYE - Tax Reform Bills
Read more on Nigeria payroll here Statutory Notes