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PAYE in Nigeria 2026: NTA 2025 bands

From 1 January 2026, PAYE uses a ₦800,000 zero band and a 25% top rate above ₦50 million of chargeable income. Pension, NHF and rent relief still change the bill. Use the calculator on this site; do not copy a 2025 spreadsheet.

Written by Accounting Software Africa editorial Reviewed by Accounting Software Africa editorial, Publisher editorial desk. Tax figures are cited to the Nigeria Tax Act 2025. Assign a named ICAN reviewer in this field before treating a page as a signed professional opinion.

Last updated 2 Sept 2026

What are the 2026 PAYE bands?

Chargeable income, not gross salary, walks the schedule: ₦800,000 at 0%; the next ₦2.2 million at 15%; the next ₦9 million at 18%; the next ₦13 million at 21%; the next ₦25 million at 23%; the remainder at 25%.

Does pension still reduce PAYE?

Employee pension at 8% of basic plus housing plus transport is still the usual contribution. The calculator only deducts it when you say it is claimed. NTA s.31 requires deductions to be claimed in writing.

How does rent relief work?

Section 30(2)(a)(vi) allows 20% of annual rent paid, capped at ₦500,000. If the employee pays no rent, the relief is zero. Do not invent a standard ₦500,000 for every staff member.

Are minimum-wage earners exempt?

Section 58 can exempt minimum-wage earners. Tick that box on the calculator only when it is true. It is not a general SME relief.

Which software calculates this?

None of the global clouds in our Nigeria set ships this schedule as a certified engine. Run this calculator, then journal the expense in whatever ledger you use.

How to run January payroll once

Do this before you touch software settings.

  1. Freeze the 2025 file

    2025 PAYE used PITA. Keep that year closed.

  2. Collect relief claims

    Pension, NHF, NHIS, rent — in writing.

  3. Run the calculator

    Use annual figures, then divide for monthly PAYE unless your contract says otherwise.

  4. File with the State IRS / NRS process you already use

    The calculator does not file.

PAYE questions

Is the top rate 24% or 25%?

25% on chargeable income above ₦50 million in the Fourth Schedule we encode.

Can I still use a 2024 Taxer.ng band table?

No. Some public tables split the upper bands incorrectly. Ours follows the printed Act.

Sources

  1. NTA 2025 2 Sept 2026

Tools and software

Store the payroll journal in Tyms

Optional labelled exit. The calculator works without an account.

Open Tyms

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