How is PAYE calculated in Nigeria?

Under the Personal Income Tax Act, you first compute the Consolidated Relief Allowance (the higher of ₦200,000 or 1% of gross income, plus 20% of gross income). Subtract it from gross to get taxable income, then apply seven progressive brackets from 7% up to 24%.

What is the Consolidated Relief Allowance?

The CRA replaced several older reliefs. It equals 20% of gross income plus the higher of ₦200,000 or 1% of gross income. Statutory pension and NHF deductions are also relieved before tax in a full payslip.

What are the Nigerian PAYE tax brackets?

Annual taxable income is taxed at 7% on the first ₦300,000, 11% on the next ₦300,000, 15% on the next ₦500,000, 19% on the next ₦500,000, 21% on the next ₦1,600,000, and 24% on anything above ₦3,200,000.

Is there a minimum tax in Nigeria?

A minimum tax of 1% of gross income can apply where reliefs would otherwise reduce tax below it. This calculator shows the standard bracket computation; confirm minimum-tax cases with a tax adviser.

Does this tool store my income?

No. All calculations run in your browser and nothing is uploaded or saved.

Nigeria PAYE Calculator

PAYE (Pay As You Earn) is the income tax Nigerian employers deduct under the Personal Income Tax Act (PITA). The defining feature is the Consolidated Relief Allowance (CRA), which is subtracted before the progressive brackets apply. This calculator reproduces that computation so you can verify a payslip.

How it works

Gross income — your total annual emolument.
Consolidated Relief Allowance (CRA) = 20% of gross income, plus the higher of ₦200,000 or 1% of gross income.
Taxable income = gross − CRA (floored at zero).
Apply the seven progressive annual brackets, each rate hitting only its slice:
- First ₦300,000 → 7%
- Next ₦300,000 → 11%
- Next ₦500,000 → 15%
- Next ₦500,000 → 19%
- Next ₦1,600,000 → 21%
- Above ₦3,200,000 → 24%
Sum the slices to get annual PAYE; divide by 12 for the monthly deduction.

Example

Gross income ₦3,000,000:

CRA = 20% × 3,000,000 + max(200,000, 1% × 3,000,000) = 600,000 + 200,000 = ₦800,000
Taxable = 3,000,000 − 800,000 = ₦2,200,000
Tax: 7%×300k + 11%×300k + 15%×500k + 19%×500k + 21%×600k = 21,000 + 33,000 + 75,000 + 95,000 + 126,000 = ₦350,000 annual → about ₦29,167/month.

Notes

A complete payslip also relieves statutory pension and National Housing Fund contributions before the CRA. This tool models the headline CRA + bracket calculation. Where reliefs would push tax very low, a 1% minimum tax may apply — confirm such cases with an adviser.