Ruleset 2026.2

Know what the calculator covers.

Built-in assumptions

How SalarySabi treats your entries

Payroll cash and relief
Monthly pension, NHF, NHIS and entered payroll payments reduce cash pay. Mortgage and insurance tax reliefs are entered separately as annual amounts. For 2026, eligible life-insurance relief uses amounts actually paid in 2025. Verify eligibility and records; current insurance withholding is not automatically a tax relief.
Business income
Sole-trader estimates use profit supported by business records and apply personal tax bands without the employment minimum-wage exemption. They assume this is the person's only taxable income. Presumptive tax, virtual assets, mixed income and foreign-tax credits are not modelled.
Company tax bases
The simplified option uses revenue less expenses as a proxy for both bases. The tax-computation option uses separate entered assessable profits for development levy and total profits for company income tax. It does not calculate capital allowances, incentives or loss relief.
Investment withholding
The user supplies the applicable rate. The tool calculates withholding only; it does not determine exemptions, treaty rates or final tax liability.
Annualisation
Regular monthly salary is multiplied by 12. The calculator does not infer bonuses, a thirteenth-month payment or months with different earnings.
Monthly PAYE
Annual PAYE is divided by 12. This is an estimate for regular monthly pay, not a payroll instruction for irregular or non-periodic payments.
Rounding
Calculations use JavaScript numeric precision. Displayed naira amounts are rounded for readability, while exports show two decimal places.
Eligible deductions
The personal calculator accepts pension, NHF and NHIS contributions and rent relief. Payroll also accepts qualifying mortgage interest and life-insurance relief. SalarySabi does not verify documents or eligibility.
Rent relief
The calculator uses 20% of eligible annual rent entered, capped at ₦500,000. Enter only your share attributable to the tax year. It does not collect the tenancy and landlord information a revenue authority may require.
Minimum wage
Annual employment income at or below ₦840,000 is treated as exempt under the calculator's 2026 ruleset.
Unsupported cases

Ask a professional when pay is not straightforward.

The current calculator does not fully model:

  • Benefits in kind, accommodation valuation and employer-provided assets
  • Arrears, bonuses, commissions and other non-periodic payments
  • Multiple employers or combined income from employment, business, rent, investments or digital assets
  • Part-year employment, joining or leaving during the year
  • Non-resident, expatriate or cross-border tax circumstances
  • Tax credits, prior PAYE, refunds, penalties, filing and remittance obligations
  • State-specific administrative practices or payroll adjustments

Official sources and newer guidance cover presumptive tax, virtual assets and the transition from earlier accounting periods. These circumstances need separate assessment.

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