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PAYE Tax in Nigeria: Complete Guide to Your Monthly Salary Deductions

Comprehensive guide to understanding paye tax in nigeria for Nigerian taxpayers

TaxEase Nigeria
14/02/2026
10 min min read
PAYEIncome TaxSalary DeductionTax ComplianceEmployeesEmployersFIRSTax Clearance CertificatePersonal Income TaxTax Calculation

PAYE Tax in Nigeria: Complete Guide to Understanding Your Monthly Salary Deductions

Introduction

Chioma just received her first payslip from her new job at a marketing agency in Lagos. Her agreed salary was ₦150,000 monthly, but the actual amount in her account was ₦137,033. When she looked at the deductions, she saw "PAYE: ₦12,967" and wondered: What exactly is PAYE tax in Nigeria? How did they calculate this amount? Is this even correct?

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PAYE Tax in Nigeria: Complete Guide to Your Monthly Salary Deductions | TaxEase Nigeria