PAYE Tax Calculator
Estimate your Pay-As-You-Earn tax based on the Nigeria Tax Act 2025.
The PAYE (Pay As You Earn) system is how Nigerian employees pay income tax on their salaries. Under the Nigeria Tax Act 2025, PAYE is calculated using progressive tax bands after deducting statutory reliefs. Use this free calculator to estimate your annual and monthly tax liability.
- First ₦800,000 of taxable income is tax-free (0% band)
- Maximum marginal rate is 25% on income above ₦50,000,000
- CRA is abolished under NTA 2025 — individual reliefs apply instead
- Self-assessment returns due by March 31 annually
NTA 2025 Rates in Effect
This calculator uses the progressive PAYE tax bands from Part III, Section 34 of the Nigeria Tax Act 2025.
Income Details
Enter your gross annual income to estimate your PAYE tax
Enter your income details to see your estimated tax
NTA 2025 PAYE Tax Bands
Part III, Section 34 of the Nigeria Tax Act 2025
Frequently Asked Questions
How is PAYE calculated in Nigeria under the Tax Act 2025?
PAYE is calculated by first determining your gross annual income, then deducting statutory reliefs (pension 8%, NHF 2.5%, NHIS 5%, rent relief up to ₦500,000, and life insurance premiums). The remaining taxable income is taxed using six progressive bands ranging from 0% to 25%.
What reliefs can I claim to reduce my PAYE tax?
Under NTA 2025 Section 33, you can claim: pension contribution (8% of pensionable emoluments), NHF (2.5% of basic salary), NHIS (5% of basic salary), rent relief (20% of annual rent, capped at ₦500,000), life insurance premiums, and voluntary pension contributions.
What are the PAYE tax bands for 2025?
The NTA 2025 progressive bands are: 0% on the first ₦800,000, 15% on the next ₦2,200,000, 18% on the next ₦7,000,000, 21% on the next ₦15,000,000, 23% on the next ₦25,000,000, and 25% on income above ₦50,000,000.
Is the PAYE calculator free to use?
Yes, the TaxEase PAYE calculator is completely free. No signup or account is required. Create a free account to save calculations and access advanced features like PDF exports and AI analysis.
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