Reference Guide · Nigeria Tax Act 2026
Complete PAYE rate table, thresholds, and worked salary examples — all based on the Nigeria Tax Act 2026, effective January 1 2026.
Nigeria uses a progressive tax system — each rate applies only to the income within that band, not your entire salary. The bands below apply to your taxable income after deducting pension, NHF, rent relief, and the Consolidated Relief Allowance.
| Band | Annual Taxable Income | Rate | Max Tax in This Band |
|---|---|---|---|
| 1st | ₦0 — ₦800,000 | 0% | ₦0 — Tax Free |
| 2nd | ₦800,001 — ₦2,800,000 | 15% | ₦300,000 |
| 3rd | ₦2,800,001 — ₦5,800,000 | 18% | ₦540,000 |
| 4th | ₦5,800,001 — ₦8,800,000 | 21% | ₦630,000 |
| 5th | ₦8,800,001 — ₦13,800,000 | 24% | ₦1,200,000 |
| 6th | Above ₦13,800,000 | 26% | No cap |
⚠️ No reliefs applied above. In reality, pension (8%), NHF (2.5%), rent relief (20%), and NHIS significantly reduce your taxable income — and therefore your real tax owed. WAKATAX applies all reliefs automatically.
The bands above are just the starting point. WAKATAX does the full calculation and gives you your exact, reduced 2026 PAYE liability.