| Bracket | Rate | Tax |
|---|---|---|
| First ₦800,000 | 0% | ₦0 |
| ₦800,001 — ₦3,000,000 | 15% | ₦330,000 |
| ₦3,000,001 — ₦12,000,000 | 18% | ₦405,000 |
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TAXKORA is an independent tax platform and is not affiliated with FIRS. Reports are formatted to match official filing requirements; you remain responsible for submission.
Legal basis: calculations follow the Nigeria Tax Act 2025 and Tax Administration Act 2025. See the tax law library.
In Nigeria, salary tax is deducted at source under the Pay-As-You-Earn (PAYE) system. Employers withhold tax each month based on your annual taxable income and remit it to the State Inland Revenue Service (SIRS) of the state where you reside.
Sum of your basic salary, housing, transport, allowances and bonuses for the year.
The first ₦800,000 of taxable income is tax-free, then progressive rates from 15% to 25%.
Your monthly PAYE is the annual tax divided by 12.
PAYE follows the Personal Income Tax progressive brackets under the 2026 Nigeria Tax Act: 0% on the first ₦800,000, then 15%, 18%, 21%, 23% and 25% on higher bands.
Yes. Under the 2026 rules, taxable income up to ₦800,000 per year is charged at 0%. Anything above that is taxed at progressive rates.
Rent relief is 20% of the annual rent you pay, capped at ₦500,000 per year, and it reduces your taxable income before PAYE is applied.
₦50,000 × 12 = ₦600,000 annual gross. After statutory deductions this falls under the ₦800,000 exempt threshold, so no PAYE is due — but you still have pension/NHF where applicable.
PAYE is remitted to the State Inland Revenue Service (SIRS) of the state where the employee resides — for example LIRS for Lagos residents.
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