PAYE Calculator - ClarTax Nigeria

Enter Your Income Details

Calculation Period

Basic Salary *

₦

Your base salary before allowances

Housing Allowance

₦

Transport Allowance

₦

Other Allowances

₦

Utility, meal, entertainment allowances, etc.

Important Note

This calculator provides estimates based on the NEW 2026 Nigerian tax rates. Your actual tax may vary. We do not store any information you enter.

Your Results Will Appear Here

Enter your income details and click "Calculate Tax" to see your breakdown.

Tax Calculation Results

Gross Income ₦0

Deductions

Tax-Free Threshold ₦66,667

Pension (8%) ₦0

Taxable Income ₦0

Tax Breakdown by Bands

Total Tax ₦0

Per Month

Net Take-Home Pay ₦0

After all deductions

🆕 2026 Tax Bands

First ₦800,000 0% (Tax Free)

₦800k - ₦3M 15%

₦3M - ₦12M 18%

₦12M - ₦25M 21%

₦25M - ₦50M 23%

Above ₦50M 25%

Understanding Your Results

💡 Simple English Please!

Your Gross Salary = ₦250,000

This is what your contract says you earn (before any deductions)

Government Says: First ₦800k is FREE! 🎉

In Nigeria now (2026), if you earn ₦800,000 or less per year (₦66,667/month), you pay ZERO tax!

Example: Someone earning ₦50k/month pays NO tax at all! ✨

Your Pension = ₦18,400

This goes to your retirement account. Good news: Your employer adds the same amount! So you're actually saving ₦36,800 total for retirement.

Your Tax = ₦24,740

This is what government takes to build roads, schools, hospitals, etc.

⚠️ This should match what your payslip shows!

Money You Actually Get = ₦206,860 💰

This is the cash that enters your bank account every month!

🤔 "Is This Normal?" - Real Examples:

😊 Chioma earns ₦60,000/month as a shop assistant

Tax: ₦0 | Take-home: ~₦55,200

Because ₦60k is below ₦66,667/month threshold - NO TAX! She only loses pension.

👔 Emeka earns ₦250,000/month in a bank

Tax: ~₦25,000 | Take-home: ~₦207,000

About 10% goes to tax - this is normal for mid-level salaries.

💼 Ngozi earns ₦800,000/month as a manager

Tax: ~₦130,000 | Take-home: ~₦606,000

Higher earners pay more tax - about 16% of salary goes to tax.

📊 Quick Comparison (Monthly):

Salary Level	Gross	Tax	Take-Home
Entry Level	₦100k	₦0	~₦92k
Junior	₦200k	~₦10k	~₦174k
Mid-Level	₦250k	~₦25k	~₦207k
Senior	₦500k	~₦65k	~₦399k
Management	₦1M	~₦162k	~₦758k

* Approximate values, 8% pension, no NHF

✅ What Should You Do Now?

1. Check Your Payslip: Compare this calculation with your actual deduction.

2. If Numbers Don't Match: Ask your HR/Payroll why there's a difference.

3. Save This Result: Print or screenshot for your records.

4. Verify Remittance: Make sure your employer sends your tax to NRS (Nigeria Revenue Service).

🚩 Talk to HR Immediately If:

• Your employer deducts MORE tax than this calculator shows
• You're paying tax but earn less than ₦800,000/year (₦66,667/month)
• Your payslip doesn't show pension deduction
• No TIN (Tax Identification Number) appears on your payslip
• Your employer can't show proof they're remitting your tax to NRS

How PAYE Tax is Calculated

Understanding the calculation process behind your tax.

Calculate Annual Gross Income

Add up all your salary components (basic + housing + transport + other allowances) and multiply by 12 for annual income.

Apply Tax-Free Threshold

The first ₦800,000 of your annual income is completely tax-free under the new 2026 law. This replaces the old CRA calculation.

Deduct Pension Contributions

Subtract your pension contributions (typically 8% of basic + housing + transport). This is also tax-free.

Deduct Rent Relief (If Applicable)

If you pay rent, you can deduct 20% of your annual rent (maximum ₦500,000) from your taxable income. This is a NEW benefit in 2026.

Apply Progressive Tax Bands

Calculate tax on the remaining taxable income using Nigeria's NEW six progressive tax bands (0%, 15%, 18%, 21%, 23%, 25%).

Divide by 12 for Monthly Tax

Your annual tax is divided by 12 to get your monthly PAYE deduction. This is what your employer deducts from your salary.

PAYE Tax Calculator