Free Nigeria PAYE Calculator (Nigerian Tax Act 2025) From - HR ~ Cottage

We know that a lot of people have for long wished that there is a FREE tool that genuinely help with Nigeria's PAYE calculation.

Worry not as we have provided that long awaited tool to help you either calculate PAYE as an HR professional or confirm the PAYE figure on your payslip.

This calculator uses the New Nigeria Tax Act 2025 as the current rule for PAYE computation.

Enter monthly figures; we will calculate pension, NHF, reliefs and PAYE automatically.

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Understanding Nigeria PAYE Under the New Tax Act 2025

Pay As You Earn (PAYE) is the most common form of personal income tax in Nigeria. Under the New Nigeria Tax Act 2025, PAYE computation has been significantly simplified, but many employees and HR professionals still struggle to understand how their monthly tax is calculated.

This HR Cottage Free Nigeria PAYE Calculator was designed to remove confusion by applying the law exactly as written — no guesswork, no outdated rules, and no hidden assumptions.

What Changed in the Nigeria Tax Act 2025?

Many online calculators still apply pre-2025 rules. This tool does not. Every calculation here strictly follows the current law.

How to Use the HR Cottage PAYE Calculator (Step-by-Step)

  1. Enter Monthly Gross Pay
    This should include basic salary and all taxable allowances.
  2. Confirm Pension & NHF
    Pension defaults to 8%. Select NHF only if the employee actually contributes.
  3. Add Allowable Deductions
    AVC, NHIS, life insurance, and other tax-approved deductions reduce taxable income.
  4. Enter Annual Rent (If Applicable)
    The calculator automatically applies the legal rent relief cap.
  5. Calculate for One Employee or a Batch
    HR teams can build payroll-ready batch outputs instantly.

💡 Tip: You can export results as Excel, CSV, or PDF — including payroll-ready rows.

Why Your PAYE May Look Different From Your Payslip

Many Nigerian employees discover that their PAYE differs from what appears on their payslip. This usually happens because:

This calculator shows exactly how each naira is treated, including a full tax-band breakdown — so you can confidently question errors.

Simply fill in your Salary details in the HR Cottage's Tax Calculator Form below.

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1. Monthly Earnings (₦)
Required when adding multiple employees to a batch.
Optional identifier for reports and exports.
✔
Taxable earnings before statutory deductions (basic + allowances).
2. Statutory Pension & NHF
✔
Standard employee contribution is usually 8% of pensionable pay.
Nigerian law allows pension to be calculated on either full income or BHT components.
Select “Yes” if the employee contributes to National Housing Fund.
3. Additional Allowable Deductions (Monthly, ₦)
✔
✔
✔
✔
Any other tax-allowable deductions not listed above.

All the above (including NHF if selected) are treated as allowable deductions for tax purposes.

4. Rent Relief
✔
Relief is the lower of ₦500,000 or 20% of annual rent. Leave blank if not applicable.
5. Actions

You can calculate for a single employee or build a batch for multiple employees.


Who Should Use This Nigeria PAYE Calculator?

If accuracy, compliance, and clarity matter to you, this tool was built for that purpose.

Is This PAYE Calculator Legally Accurate?

Yes. The calculator strictly follows the Nigeria Tax Act 2025 and applies progressive tax bands exactly as prescribed by law. However, this tool is for guidance and education. For disputes or audits, always consult a licensed tax professional.

Overcome HR challenges with real-time insights and automated compliance.

Join HR Cottage today to enhance efficiency, drive growth, and improve employee satisfaction effortlessly.

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