Nigerian Salary Calculator 2026
Enter your gross monthly salary to instantly calculate your take-home pay after PAYE income tax, pension contributions (PFA), and NHF deductions — using current Nigerian tax brackets.
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How Nigerian Salary Deductions Work
PAYE Income Tax
Pay As You Earn (PAYE) is deducted by your employer monthly. Nigeria uses a progressive tax system: the more you earn, the higher your tax rate — from 7% on the first ₦300,000 to 24% above ₦3.2 million annually.
Pension (PFA)
Under the Pension Reform Act, employees contribute 8% of their monthly gross salary to their Pension Fund Administrator (PFA). Your employer adds a minimum of 10%. Only the employee's 8% reduces your take-home pay.
NHF Contribution
National Housing Fund (NHF) contributions are 2.5% of your basic salary. This applies to Nigerians in employment and is deducted monthly. You can claim a refund when you retire or reach age 60.
2026 Nigerian Income Tax Brackets (PAYE)
| Annual Income Band | Tax Rate | Max Tax on Band |
|---|---|---|
| First ₦300,000 | 7% | ₦21,000 |
| Next ₦300,000 | 11% | ₦33,000 |
| Next ₦500,000 | 15% | ₦75,000 |
| Next ₦500,000 | 19% | ₦95,000 |
| Next ₦1,600,000 | 21% | ₦336,000 |
| Above ₦3,200,000 | 24% | Unlimited |
Source: Federal Inland Revenue Service (FIRS). Consolidated Relief Allowance (CRA) of ₦200,000 + 20% of gross income is deducted before tax is calculated. This calculator applies CRA automatically.
Frequently Asked Questions
What is the minimum wage in Nigeria in 2026?▼
The Nigerian national minimum wage was increased to ₦70,000 per month in 2024. As of 2026, some states have adopted higher minimum wages. Always check the current rate with the National Minimum Wage Act.
Do I have to pay tax if I earn below the minimum wage?▼
Nigerians earning below ₦300,000 annually (about ₦25,000/month) are taxed at 7% on only the income above the Consolidated Relief Allowance. In practice, most minimum wage earners pay very little PAYE tax after CRA is applied.
What is CRA and how does it reduce my tax?▼
The Consolidated Relief Allowance (CRA) is a tax relief of ₦200,000 plus 20% of your gross income. This amount is deducted from your income before PAYE is calculated, significantly reducing how much tax you pay.
Can I opt out of pension contributions?▼
No. The Pension Reform Act 2014 makes pension contributions mandatory for employees in organisations with 3 or more staff. Your employer deducts 8% from your salary every month on your behalf.
Disclaimer: This calculator provides estimates for informational purposes only. Actual deductions depend on your employer, allowance structure, and specific tax status. Consult your HR department or a certified tax professional for precise figures.