Nigeria Take-Home Pay Calculator - PAYE 2026

PAYE (Pay As You Earn) is the income tax withheld at source by your employer and remitted to your state revenue agency (LIRS for Lagos workers, FIRS for federal employees, individual state IRSs elsewhere). The Nigeria Tax Act 2025, in force since 1 January 2026, replaced the previous bracket system inherited from the Personal Income Tax Act 2011. Three substantive changes matter.

First, the Act introduces a genuine ₦800,000 annual exemption. Any taxable income below this threshold is fully exempt — no schedule applied, no calculation needed. This replaces the old Consolidated Relief Allowance system that applied percentage rebates. For an informal-sector employee or a junior earner on ₦70,000/month, this means zero PAYE owed. For someone on ₦150,000/month, the bill drops meaningfully.

Second, the brackets above the exemption became more progressive: 15% on the next ₦2.2M, 18% up to ₦12M, 21% up to ₦25M, 23% up to ₦50M, and 25% above ₦50M. Third, the PRA pension employee contribution remains 8% of gross, fully tax-deductible before the brackets are applied. The calculator above applies that sequence exactly — pension first, optional NHF second, then PAYE on what is left.

The 8% PRA pension contribution is mandatory and fully tax-deductible — it shrinks your taxable income before the PAYE brackets are applied. Your employer adds another 10% on top (which does not come out of your pocket). On a ₦3.6M gross, this means ₦288,000 paid into your Retirement Savings Account every year. It does not show as take-home pay, but it is yours for retirement. Treat it as deferred compensation, not as tax.

The National Housing Fund (NHF) contribution at 2.5% is optional for most private-sector employees. Opting in costs you ₦90,000/year on a ₦3.6M gross — but that ₦90,000 is also tax-deductible, which trims your PAYE by ~₦16,200 (at the 18% marginal rate). Real net cost: about ₦73,800/year. In return you become eligible for NHF-subsidised mortgages. Toggle the checkbox in the calculator above to see the trade-off in your specific case.