How to Calculate Tax on Your Salary in Nigeria: 2026 Easy Guide
Understanding how to calculate tax on your salary in Nigeria is one of the most important parts of managing your money in 2026. Many Nigerian workers still struggle to make sense of PAYE tax, taxable income, or why their take-home pay looks smaller than expected. This guide breaks everything down into simple steps so you can calculate your tax on your salary, confirm your PAYE deductions, and understand exactly how much of your income goes to the government. If you’ve been trying to calculate the tax on your income, this guide offers a straightforward explanation of the entire process. What Does PAYE Tax Mean in Nigeria? PAYE tax, or Pay As You Earn, is a personal income tax your employer deducts from your salary each month and remits to the state government. It applies to workers in both the public and private sectors. According to the Federal Inland Revenue Service (FIRS), PAYE is designed to ensure that individuals contribute to public services based on their earnings. Payroll ...