Nigeria Tax Act 2025

Calculate Your Personal Tax in Seconds

Accurate PAYE calculations for employees, contractors, business owners, and service providers. Know exactly how much you keep.

Calculate Your Tax
₦0₦100M
Calculating for:Employee
Your Tax Profile: Employee (PAYE)
Tax System:PAYE - Pay As You Earn
WHT Applicable:No
Filing Required:Optional if only employment income

How Your Tax is Calculated:

Progressive rates on gross income minus deductions

Legal Reference:

Section 81 - PAYE deduction by employer

Your Tax Results
Take-Home Pay
Net Income

₦180,000

per month

Tax Paid

₦20,000

Effective Rate
Progressive

10.00%

Tax Breakdown by Band

Section 33, First Schedule
Free
on ₦66,667
Section 33(1)(a)
₦0
15%
on ₦133,333
₦20,000

Deductions Applied

Tax Reducing

Consolidated Relief Allowance (CRA)

Section 33(2)

Higher of ₦200,000 or 1% of gross income, plus 20% of gross income

-₦56,667

National Housing Fund (2.5%)

National Housing Fund Act

2.5% of basic salary for housing development

-₦5,000

NHIS Contribution (5%)

NHIS Act

The National Health Insurance Scheme Act is approximately 5% for health insurance coverage

-₦10,000

Per ₦1,000 earned

You Keep

900

Tax Paid

100

Your Effective Tax Rate Explained
Why This Rate?

As a Employee (PAYE), your effective tax rate is 10.00% because: • You're taxed under PAYE - Pay As You Earn • Progressive rates apply (0% to 25%) • No WHT applicable • Deductions reduce your taxable income Reference: Section 81 - PAYE deduction by employer

Documentation Requirements
Documents needed to claim your deductions when filing

Filing Requirements
Ways to reduce tax
  • Contribute up to 20% to pension
  • Claim rent relief (max ₦500k)
  • Review pay structure with HR

Understanding the Nigeria Tax Act 2025

Learn about the new tax brackets, exemptions, and how they affect your take-home pay.