Take-home pay under the new tax law: the 2026 bands, pension, the National Housing Fund and rent relief. Start from the gross, or from the take-home someone wants and see the gross it needs.
Everything paid each month before deductions.
Transport is the rest: 20%.
Under the Nigeria Tax Act 2025, from 1 January 2026. A guide to PAYE, not tax advice.
The first ₦800,000 a year is tax free, then 15%, 18%, 21%, 23% and 25%. Minimum wage earners pay no PAYE.
A fifth of the rent paid, up to ₦500,000 a year, comes off taxable income. It replaced the old consolidated relief allowance.
Offering a job at a take-home figure? Enter it and get the gross pay it needs.
Payslips by link, the bank payment file and the PAYE, pension and NHF schedules, every month.
The Nigeria Tax Act 2025 took effect on 1 January 2026. The first ₦800,000 of taxable income a year is tax free, the bands rise to 25% above ₦50 million, the consolidated relief allowance is gone, and rent relief replaces it.
The employee's pension (8%), NHF (2.5% of basic), health insurance contributions, life insurance premiums, interest on a loan for their own home, and rent relief.
At the person's top rate: the year's tax with the bonus, less the year's tax without it.
No. It follows the published rules, but your circumstances may differ; check with a tax adviser or your state's revenue service.
Article6 min read
The Nigeria Tax Act 2025 changed how employees are taxed from 1 January 2026. The new bands, rent relief, what comes off before tax, two worked examples and a monthly checklist for employers.
Edema Ukabi · 23 October 2026