Sources and rates
Every value the calculators use, the page it comes from, and the date it was last checked. Rates are for 2026. The Act and the tax authority site could not be opened, so every row says it was not confirmed on an official page.
| Item | Value | Basis and sources | Last checked |
|---|---|---|---|
| PAYE bands (Nigeria Tax Act 2025) | Chargeable income a year: nil to ₦800,000; 15% from ₦800,000; 18% from ₦3,000,000; 21% from ₦12,000,000; 23% from ₦25,000,000; 25% from ₦50,000,000. Monthly PAYE is the annual tax divided by 12 | Law-firm article, PwC Nigeria summary and a payroll guide; the Act and the tax authority site could not be opened | 2 Nov 2026 Not confirmed on an official page |
| Rent relief | 20% of annual rent paid, up to ₦500,000 a year | Law-firm article citing section 30(2)(a) and a Forvis Mazars note | 2 Nov 2026 Not confirmed on an official page |
| Employee pension | 8% of monthly emoluments (employer at least 10%), deducted before tax | Payroll guide citing the Pension Reform Act 2014; the PenCom page was not read | 2 Nov 2026 Not confirmed on an official page |
| National Housing Fund | 2.5% of monthly basic salary, deducted before tax, off unless ticked | Payroll guide and a law-firm article on section 30 deductions | 2 Nov 2026 Not confirmed on an official page |
| NHIS | 5% of monthly basic salary (rate not confirmed), deducted before tax, off unless ticked | Law-firm article names the deduction; the rate comes from guides that were not read in full | 2 Nov 2026 Not confirmed on an official page |
| Method up to 2025 (comparison only) | Consolidated Relief Allowance of the higher of ₦200,000 or 1% of gross pay, plus 20% of gross pay; bands 7% from ₦0; 11% from ₦300,000; 15% from ₦600,000; 19% from ₦1,100,000; 21% from ₦1,600,000; 24% from ₦3,200,000 | PwC Worldwide Tax Summaries and a payroll guide | 2 Nov 2026 Not confirmed on an official page |
| Minimum wage exemption | Employment income of a person on the national minimum wage (₦70,000 a month) or less is exempt; no effect on these results | Law-firm article citing section 163 | 2 Nov 2026 Not confirmed on an official page |
Not included or not confirmed
- The Nigeria Tax Act 2025 gazette and the Nigeria Revenue Service (formerly FIRS) pages could not be opened from this machine (the NRS site shows a browser check, the FIRS site did not answer). The six bands and rates were read on a law-firm article, a PwC Nigeria summary and a payroll guide, which agree with each other. The section numbers (30 and 58) are as cited by those articles.
- Rent relief of 20% of annual rent up to 500,000 was read on the same secondary articles. One search result said salaried people may deduct up to 200,000 of rent, which disagrees with the others and was not used.
- The pension rate of 8% for the employee (10% for the employer) comes from payroll guides that cite the Pension Reform Act 2014. The PenCom page was not read. The calculator takes pension on the whole salary entered, while the law applies it to basic salary, housing and transport only, so for pay that includes other allowances the real deduction is lower.
- NHF at 2.5% of basic salary was read on one payroll guide. Whether a given employee must pay it was not confirmed, so the box is unticked by default. The calculator applies the rate to the basic salary you enter, or to the whole salary if you leave basic blank.
- The NHIS employee rate of 5% of basic salary is not on any page that was read in full. The box is unticked by default.
- Life insurance and annuity premiums and interest on a loan for an owner-occupied home are also deductions under section 30, as described by the article read. They are not modelled.
- The pre-2026 comparison uses the Personal Income Tax Act as amended in 2011 and ignores the minimum tax and any other relief. The old rules are shown for comparison only.
- The 70,000 national minimum wage and the exemption of minimum wage earners (section 163 as cited) were read on secondary pages. They do not change the results.
- PAYE is taken as the annual tax divided by 12 on a salary that is the same every month. The employer's own method, state tax authority rules and any year-end adjustment can differ. Overtime, allowances, bonuses, benefits in kind, other income and a second job are not modelled.
- State and federal collection details (the state internal revenue service that receives PAYE) and development levies are not modelled.
- Whether any of these rules were changed after the check date was not tracked.
Last checked 2 November 2026. These pages are general information only. Found a difference from an official page? Tell us.