Nigeria Take-Home Salary Calculator
Free Nigeria net salary calculator: PAYE on the Nigeria Tax Act 2025 bands with the 8% pension deduction, every step shown.
What does the Nigeria Take-Home Salary Calculator do?
It converts a gross Nigerian monthly salary into take-home pay using the Nigeria Tax Act 2025 graduated bands, the new NGN 800,000 tax-free first band and the 8% employee pension contribution.
- Inputs: gross monthly salary.
- Output: net pay with PAYE and pension itemised.
- Method: the Nigeria Tax Act 2025 bands, evaluated in your browser.
Quick answer
A NGN 500,000 monthly salary nets about NGN 394,700 after pension of NGN 40,000 a month and PAYE of about NGN 65,300 a month. The first NGN 800,000 of annual income is now tax-free, so the effective tax rate is only about 13%.
What This Calculator Really Does
Nigeria rewrote personal income tax on 1 January 2026. The old Consolidated Relief Allowance — which could shelter around 21% of income — was abolished and replaced by a much wider zero-rate band and a simpler set of rates capped at 25%. The practical effect for most employees is that the deduction depends far more on the pension contribution and the size of the salary than on reliefs.
The rules it applies
- Pension: 8% of gross annual emoluments contributed by the employee (the employer adds 10% on top, which never appears as a deduction).
- PAYE bands 2026: 0% on the first NGN 800,000, 15% on the next NGN 2.2m, 18% on the next NGN 9m, 21% on the next NGN 13m, 23% on the next NGN 25m, 25% above NGN 50m.
- Minimum wage: employees earning no more than the NGN 70,000 national minimum wage are not liable for PAYE at all.
- Not modelled: the rent relief, life-insurance relief, and any other allowable deductions.
Worked example with real numbers
Gross NGN 500,000 a month = NGN 6,000,000 a year. Pension = 8% = NGN 480,000. Taxable income = NGN 5,520,000. PAYE = 0% on the first 800,000, then 15% on 2.2m (NGN 330,000) and 18% on the remaining 2.52m (NGN 453,600) = NGN 783,600 a year, about NGN 65,300 a month. Take-home = NGN 394,700 a month.
Reading the result
The donut separates PAYE from the pension contribution — the pension is not lost money, it funds your retirement account, so the real cost of the deduction is lower than it looks. Because the zero-rate band is large, low and middle earners see the biggest proportional gain from the 2026 reform. Note that a state may still levy its own development levy on top of federal PAYE, and that bonuses and allowances are taxable unless they fall within a specific exemption.
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Frequently Asked Questions
How is the Nigeria take-home salary calculated?
Gross salary minus the 8% employee pension contribution, then PAYE on the Nigeria Tax Act 2025 bands (0% to NGN 800,000, then 15%, 18%, 21%, 23% and 25%). The steps panel shows each band in order.
What do I need to use the Nigeria Take-Home Salary Calculator?
Just your gross monthly salary. The pension rate and the 2026 tax bands are built in.
What does the result from the Nigeria Take-Home Salary Calculator show?
Monthly take-home with the pension deduction and PAYE itemised, plus a donut chart of how the gross divides and the effective tax rate.
Does the Consolidated Relief Allowance still apply in Nigeria?
No. The Nigeria Tax Act 2025 abolished the Consolidated Relief Allowance and replaced it with a much wider zero-rate band — the first NGN 800,000 of annual income is now tax-free.
Is the Nigeria Take-Home Salary Calculator really free?
Yes — 100% free, no account, everything runs in your browser.