PAYE Tax Calculator
Stop guessing about your salary. This Nigeria 2025 PAYE Tax Calculator tool gives you the exact figures fast. It’s simple, accurate, and uses the latest tax rates. No more spreadsheet headaches; just a clear answer on your net income.
PAYE Tax Calculator
Nigeria Tax Act 2025 • Fast & Accurate
Nigerian PAYE Tax Calculator: Your Quick Guide
Step 1: Input Your Income 📝
The first step is the easiest.
- Find the Box: Locate the field labeled Annual Gross Income (₦).
- Enter Your Total: Put in your total yearly salary before any mandatory deductions. This includes your basic salary and all allowances.
- Quick Check: If your yearly income is ₦840,000 or less, the law says you’re tax-exempt (free from PAYE tax). The calculator handles this automatically.
Step 2: Choose Your Deductions (The Tax Relief) ✅
This section is where you save money. The law allows you to deduct certain contributions before your tax is calculated. Check the boxes that apply to you.
| Deduction | What to Enter | Why it Matters |
| National Housing Fund (NHF) | Your total annual NHF payment. | This is 2.5% of your basic salary. |
| National Health Insurance (NHIS) | Your total annual NHIS contribution. | If you pay for health insurance, count it. |
| Pension Contribution | Your total annual contribution (usually 8% of your monthly salary). | Pension is a significant tax-free saving. |
| Life Insurance Premium | The total amount you pay annually for life insurance. | Another important tax-deductible expense. |
| Rent Relief | Enter your total annual rent paid. | The tool automatically calculates your relief (20% of rent, up to a ₦500,000 maximum). |
Actionable Tip: Check a box, and a new input field appears. Enter the exact annual amount for that deduction. If you don’t pay a deduction (like NHF), leave the box unchecked.
Step 3: Get Your Results 💰
When you finish entering your numbers, hit the Calculate My Tax 🚀 button.
The tool instantly gives you a breakdown, answering the two most important questions:
- Annual Tax Payable: This is the precise amount you owe in PAYE tax for the year.
- Net Annual Income: This is your take-home pay for the year (Gross Income minus all deductions and the tax amount).
It also shows your Chargeable Income. This is the final amount used to calculate your tax, after all your allowable deductions are removed from your Gross Income.
- Value-Add: Check the Tax Bracket Breakdown section. It shows you exactly which income bands your money falls into and the specific percentage rate applied to each band. This provides complete clarity on how your tax was calculated.
Use this simple, direct guide to take control of your salary information today.