PAYE, explained

Your PAYE. Five clear steps.

Check my PAYE

Source checkedRuleset 2026.2

No independent professional review is documented. See the calculation limits before relying on an estimate.

The calculation

From annual pay to monthly PAYE

Chargeable income (taxable income): Chargeable income is annual taxable employment income after eligible deductions and reliefs.

  1. 01Yearly pay
  2. 02Eligible deductions
  3. 03Chargeable income (taxable income)
  4. 04Yearly PAYE
  5. 05Monthly PAYE
Worked example

See it with ₦2.4 million

No deductions are entered. Every figure below comes from the same PAYE engine used by SalarySabi.

Yearly pay
₦2,400,000
Eligible deductions
₦0
Chargeable income (taxable income)
₦2,400,000
Apply the tax bands
₦800,000 taxed at 0%
₦0
₦1,600,000 taxed at 15%
₦240,000
Verify the rules and sources

The first ₦800,000 of taxable income is taxed at 0%. Higher rates apply only to the portion inside each later band. Employment income at or below the national minimum wage may be exempt.

Nigeria Tax Act 2025 ↗
JRB Personal Income Tax Guidelines 2026 ↗