Nigeria PAYE Tax & Net Salary Calculator
Compute your exact net take-home pay, progressive tax bands, statutory pension deductions, and Consolidated Relief Allowance (CRA) according to the latest Nigerian taxation framework.
📊 Net Salary Breakdown
Detailed Calculation Summary
How is PAYE calculated in Nigeria?
The Pay-As-You-Earn (PAYE) taxation model in Nigeria is regulated strictly under the Personal Income Tax Act (PITA). Tax is calculated dynamically by extracting non-taxable allowances and statutory pension funds first, applying the Consolidated Relief Allowance (CRA) relief, and passing the remaining taxable balance through six progressive percentage brackets starting at 7% and capping at 24% for higher income earners.
The Consolidated Relief Allowance (CRA) Formula
Every employee in Nigeria is entitled to CRA. The tax law states that CRA is determined by taking the higher of ₦200,000 or 1% of your Gross Income, plus 20% of your Gross Income. This total value is subtracted from your gross earnings, meaning you are only taxed on the remaining net balance.
💡 Important Note on Voluntary Contributions
Under modern PITA tax standards, additional voluntary contributions to retirement pension accounts are fully tax-exempt, allowing corporate workers to reduce their taxable base while improving long-term pension goals.
