Nigeria PAYE and VAT Calculator

Estimate your income tax and take home pay under the Nigeria Tax Act 2025, and add or remove VAT at 7.5%.

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Enter pay

Switching converts the amounts you have entered.

Basic salary (₦, per month)

Housing allowance (₦, per month)

Transport allowance (₦, per month)

Other allowances (₦, per month)

Your pension contribution (%)

Of basic, housing and transport. The legal minimum for employees is 8%.

Health insurance you pay (₦, per month)

Optional. Your NHIS or HMO contribution.

Deduct National Housing Fund (2.5% of basic salary)

Rent you pay (₦, per year)

Always enter rent as a yearly amount. Relief is 20% of rent, up to ₦500,000.

Your estimate

₦397,980.00

Take home per month

₦4,775,760.00

Take home per year

₦66,020.00

Tax per month

₦792,240.00

Tax per year

13.20%

Effective tax rate

₦5,568,000

Taxable income per year

How it is worked out (per year)

Gross pay: ₦6,000,000.00
Pension contribution: -₦432,000.00
National Housing Fund: -₦0.00
Health insurance: -₦0.00
Rent relief: -₦0.00
Taxable income: ₦5,568,000.00

Tax band by band
Band	Rate	Tax
₦0 to ₦800,000	0%	₦0.00
₦800,000 to ₦3,000,000	15%	₦330,000.00
₦3,000,000 to ₦12,000,000	18%	₦462,240.00
₦12,000,000 to ₦25,000,000	21%	₦0.00
₦25,000,000 to ₦50,000,000	23%	₦0.00
Above ₦50,000,000	25%	₦0.00

Take home is gross pay minus tax, pension, National Housing Fund and health insurance. Rent relief lowers your tax but is not taken from your pay.

This is an estimate based on the Nigeria Tax Act 2025 (effective January 2026). Your employer, state rules or other reliefs can change the final figure, so confirm with the Nigeria Revenue Service or a tax professional.

How to use the Nigeria PAYE and VAT Calculator

Choose monthly or annual and enter your basic salary and allowances.
Set your pension rate, National Housing Fund, health insurance and yearly rent.
Read your tax, take home pay and the band by band breakdown.

Questions

Which tax bands does this use?

The Nigeria Tax Act 2025 bands that apply from January 2026: the first ₦800,000 at 0%, the next ₦2,200,000 at 15%, the next ₦9,000,000 at 18%, the next ₦13,000,000 at 21%, the next ₦25,000,000 at 23%, and anything above ₦50,000,000 at 25%.

How does rent relief work?

You can deduct 20% of the rent you pay in a year, up to a maximum of ₦500,000, before tax is worked out. Enter your rent as a yearly amount.

What is deducted before tax?

Your pension contribution (at least 8% of basic, housing and transport pay), National Housing Fund contributions of 2.5% of basic pay if you make them, health insurance you pay and rent relief.

Is the result exact?

No. It is an estimate. Your employer's payroll, other reliefs and how your pay is structured can change the final figure, so confirm with the Nigeria Revenue Service or a tax professional.

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