Is the Consolidated Relief Allowance still deducted?

No. From 1 January 2026 the Nigeria Tax Act 2025 removed CRA entirely and replaced it with rent relief — the lower of ₦500,000 or 20% of the rent you actually pay — plus a wider 0% band. Any calculator still applying CRA to a 2026 salary is using the old regime.

Do I pay PAYE on the minimum wage?

No. Employees earning no more than the national minimum wage (₦70,000 a month) are not liable to PAYE at all.

Is pension taken off gross pay?

Not quite. The Pension Reform Act 2014 defines the pensionable base as basic + housing + transport, not total gross. Using gross overstates the deduction, so enter the pensionable figure if yours differs.

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Nigeria PAYE calculator (2026)

The Nigeria Tax Act 2025 replaced the Consolidated Relief Allowance with rent relief and a wider 0% band from 1 January 2026. This calculator uses the 2026 bands and shows every step.

Result

Fill in the fields to see your result.

Worked calculation

Formula

Taxable = gross − pension − reliefs
PAYE = progressive bands (0% to ₦800k, then 15/18/21/23/25%)
Take-home = gross − PAYE − pension

How it works

The Nigeria Tax Act 2025 applies from 1 January 2026 with no grace period. It removed the Consolidated Relief Allowance and widened the 0% band, so a 2026 salary taxed with CRA is calculated under a regime that no longer exists.

Example

On ₦6,000,000 a year with pension: pension takes ₦480,000, leaving ₦5,520,000 taxable. The first ₦800,000 is free, the next ₦2,200,000 is taxed at 15%, and the remainder at 18%.

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Nigeria pension Employer cost

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Where these rates come from

These rates come from a professional tax summary (PwC, retrieved 8 August 2026), not from the text of the Act. They are the same rates our payroll system uses. Check them against the Nigeria Tax Act 2025 before you file anything.

PwC Worldwide Tax Summaries - Nigeria, taxes on personal income (Nigeria Tax Act 2025 bands) · retrieved 2026-08-08 · rule ng-paye-2026, effective 2026-01-01. This is an estimate, not a filed payroll result.

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