🇳🇬 2026 Nigeria Salary Calculator
Calculate your monthly take-home pay after PAYE, Pension, and NHF. Compare NTA 2025 (new) vs PITA 2011 (old) tax systems side by side.
💰 Salary Input
Rent Relief = 20% of rent, max ₦500,000/year
📊 Results
₦205,500
₦24,500
₦2,466,000
9.8%
₦294,000 PAYE per year
Monthly Deduction Breakdown
Employer Cost
⚖️ NTA 2025 vs PITA 2011 Comparison
Current (NTA 2025)
₦205,500
PAYE: ₦24,500/mo
Other (PITA 2011)
₦205,033
PAYE: ₦24,967/mo
✅ NTA 2025 saves you ₦467/month
📋 Net Pay by Salary Range
NTA 2025 vs PITA 2011, no NHF, no rent relief
| Annual Salary | NTA 2025 Net | PITA 2011 Net | Difference |
|---|---|---|---|
| ₦1.0M | ₦75,167 | ₦72,900 | +₦2,267 |
| ₦3.0M | ₦205,500 | ₦205,033 | +₦467 |
| ₦5.0M | ₦331,833 | ₦332,667 | ₦-833 |
| ₦8.0M | ₦520,433 | ₦519,467 | +₦967 |
| ₦12.0M | ₦769,300 | ₦768,533 | +₦767 |
| ₦18.0M | ₦1,132,700 | ₦1,142,133 | ₦-9,433 |
| ₦25.0M | ₦1,556,667 | ₦1,579,000 | ₦-22,333 |
NTA 2025 Tax Rates (Effective January 2026)
The Nigeria Tax Act 2025 introduces a new progressive PAYE structure replacing the PITA 2011 system. The key benefit is a ₦800,000 tax-free threshold, meaning workers earning the national minimum wage (₦70,000/month) pay zero income tax.
| Taxable Income Band | NTA 2025 Rate | Note |
|---|---|---|
| First ₦800,000 | 0% | Tax-free |
| ₦800,001 – ₦3,000,000 | 15% | |
| ₦3,000,001 – ₦12,000,000 | 18% | |
| ₦12,000,001 – ₦25,000,000 | 21% | |
| ₦25,000,001 – ₦50,000,000 | 23% | |
| Above ₦50,000,000 | 25% | Top bracket |
How Your Salary Is Calculated
Your net pay is your gross salary minus employee pension contribution (8%), optional NHF (2.5%), and PAYE income tax. If you have Rent Relief, it reduces your taxable income.
Net Pay = Gross Salary − Pension (8%) − NHF (2.5%, if applicable) − PAYE Income Tax
Your employer also pays a pension contribution of at least 10% on top of your gross salary, bringing the total pension to 18% minimum.
Understanding Pension & NHF
Pension (Contributory Pension Scheme): Under the Pension Reform Act 2014, employees contribute a minimum of 8% and employers contribute at least 10% of qualifying earnings. Both contributions are tax-deductible.
NHF (National Housing Fund): A mandatory 2.5% contribution under the NHF Act for employees earning above the minimum wage. Contributors can access low-interest housing loans from the Federal Mortgage Bank of Nigeria.
Frequently Asked Questions
What changed with NTA 2025?
The Nigeria Tax Act 2025 (effective January 2026) replaces PITA 2011 with a new 6-step progressive PAYE structure. Key changes: ₦800,000 tax-free threshold (benefiting minimum-wage earners), removal of the Consolidated Relief Allowance (CRA), lower top rate of 25%, and simplified deduction structure.
How is PAYE calculated under NTA 2025?
PAYE is calculated on annual taxable income (gross minus pension and NHF) using 6 progressive brackets: ₦0–₦800K at 0%, ₦800K–₦3M at 15%, ₦3M–₦12M at 18%, ₦12M–₦25M at 21%, ₦25M–₦50M at 23%, and above ₦50M at 25%. The monthly PAYE is the annual amount divided by 12.
Is NHF mandatory?
The NHF Act requires employees earning above the national minimum wage to contribute 2.5% of basic salary. However, enforcement varies by employer. The contribution is tax-deductible and gives access to low-interest housing loans.
What is Rent Relief?
Under NTA 2025, employees can claim a Rent Relief deduction of 20% of annual rent paid, capped at ₦500,000 per year. This reduces your taxable income before PAYE is calculated. Rent Relief is not available under the old PITA 2011 system.