How the Nigeria Tax Act affects your paycheck in 2026

What changed?

The first ₦800,000 of annual chargeable income is taxed at 0%. Higher portions move through rates of 15%, 18%, 21%, 23% and 25%. These are marginal bands. Reaching a higher band does not put all your income at that rate.

Who is exempt at minimum wage?

Employment income at or below the national minimum wage is exempt. SalarySabi's current ruleset applies this at ₦70,000 monthly or ₦840,000 yearly.

This rule concerns employment income at the threshold. Other income or unusual circumstances may need professional review.

Which deductions can reduce chargeable income?

Eligible amounts can include pension, NHF, NHIS or NHIA contributions, qualifying mortgage interest and life-assurance premiums. Use figures you can confirm from a payslip, statement or receipt.

How does rent relief work?

Rent relief is 20% of annual rent paid, capped at ₦500,000 per year. Enter the rent you actually pay. SalarySabi calculates the relief rather than asking you to work it out first.

What does this mean for take-home pay?

There is no single answer for every worker. PAYE changes with income and eligible deductions. Net pay can also include pension, housing, health and other payroll deductions outside the PAYE figure.