Nigeria Salary Calculator 2026 — Take-Home Pay After Tax
Calculate your monthly take-home pay after PAYE tax, pension (8%), NHF (2.5%) and NHIS (5%) deductions. Uses 2026 Nigeria Tax Act brackets.
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Monthly Take-Home
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Annual Net Pay
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Total Monthly Deductions
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Effective Tax Rate
Monthly Deductions Breakdown
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How This Calculator Works
This calculator applies the Nigeria Tax Act 2025 rules effective 2026. Here is the step-by-step process:
- Gross Annual Income = Monthly Gross × 12
- Pension = 8% of (Basic + Housing + Transport) — if opted in
- CRA = Higher of ₦200,000 or 1% of Gross, PLUS 20% of Gross
- Chargeable Income = Gross − Pension − CRA
- PAYE Tax is applied at progressive rates on Chargeable Income
- NHF = 2.5% of annual basic salary
- NHIS = 5% of annual basic salary
- Net Pay = Gross − PAYE − Pension − NHF − NHIS
Frequently Asked Questions
How is PAYE tax calculated in Nigeria 2026?
Under the Nigeria Tax Act 2025, PAYE is calculated on your Chargeable Income — that is your gross income minus the Consolidated Relief Allowance (CRA) and pension deduction. The bands are: 0% on the first ₦800,000; 15% on the next ₦2.2M; 18% on the next ₦9M; 21% on the next ₦13M; 23% on the next ₦25M; and 25% on income above ₦50M annually.
What is the Consolidated Relief Allowance (CRA)?
The CRA is the higher of ₦200,000 or 1% of gross income, PLUS 20% of gross income. For example, if your annual gross is ₦4,200,000 (₦350,000/month), your CRA = ₦200,000 + ₦840,000 = ₦1,040,000. This is deducted before PAYE is computed.
Is pension deductible before PAYE tax?
Yes. Under the Contributory Pension Scheme (CPS), your 8% employee pension contribution is calculated on Basic + Housing + Transport allowances and is deducted from gross income before PAYE is computed, reducing your tax liability.
What is NHF and who must contribute?
The National Housing Fund (NHF) requires every Nigerian worker earning a minimum wage or above to contribute 2.5% of their basic monthly salary. It is managed by FMBN and can be used to access low-cost mortgage loans.
What does NHIS contribution cover?
The National Health Insurance Scheme (NHIS) requires 5% of basic salary from employees. This entitles you and your dependants to healthcare at registered NHIS hospitals. Some employers match this contribution, though this calculator shows the employee portion only.