Floray Toolkit · Calculator
PAYE Calculator 2026
See your tax and take-home pay under the Nigeria Tax Act 2025, band by band, and whether you pay more or less than under the old law.
Uses the bands in force from 1 January 2026
How PAYE works from 2026
The Nigeria Tax Act 2025 took effect on 1 January 2026 and replaced the Personal Income Tax Act. For employees, three things changed.
- New bands. The first ₦800,000 of chargeable income is taxed at 0%. The next ₦2.2 million is taxed at 15%, the next ₦9 million at 18%, the next ₦13 million at 21%, the next ₦25 million at 23%, and anything above ₦50 million at 25%.
- No consolidated relief allowance. The old allowance of ₦200,000 plus 20% of gross income has gone. In its place is rent relief: 20% of the rent you pay in the year, capped at ₦500,000.
- The same core deductions. Pension, National Housing Fund and health insurance contributions, life insurance premiums and interest on a loan for an owner-occupied home still reduce the income that is taxed.
Who pays less, and who pays more
Most low and middle earners pay less, because the tax-free band is far wider than before. Higher earners can pay more, because the old 20% allowance grew with income while rent relief stops at ₦500,000, and the top rate rose from 24% to 25%. Change the gross pay above and watch the comparison switch.
For employers
If you run payroll, every payslip changed in January 2026. Floray reviews PAYE computations and remittances, and trains payroll and finance teams on the Act. Ask our tax team or build a training brief.