Calculate Nigerian salary deductions
A gross offer tells you very little. This workflow converts it into monthly take-home pay after the Nigeria Tax Act 2025 bands, pension and NHF, and then into the rent you can realistically commit to.
The problem
You have an offer of a gross monthly figure and need to know what lands in your account, and whether it supports the annual rent a landlord will ask for up front.
Step by step
- 1
Convert gross to take-home
Enter the monthly gross and your annual rent to see PAYE, pension, NHF and the net figure.
Open PAYE Calculator Nigeria - 2
Check the pension split
Confirm the 8 percent employee contribution and see the 10 percent employer contribution that sits on top of your offer.
Open Pension Calculator Nigeria - 3
Add the NHF deduction
If your employer remits NHF, add 2.5 percent of basic salary to the deduction picture.
Open NHF Calculator - 4
Turn net pay into a rent budget
Apply the 30 percent rule to the net figure, then look at the annual lump sum a Nigerian landlord will ask for.
Open Rent Affordability Calculator
Worked example
A ₦500,000 monthly gross gives ₦6,000,000 a year, an ₦480,000 pension deduction at 8 percent, rent relief capped at ₦500,000, and a take-home in the region of ₦430,000 a month. At the 30 percent rule that supports about ₦129,000 of rent a month, or roughly ₦1,550,000 to raise for a full year.
Limitations to know
- The calculators assume a standard salary structure and full-year employment. Bonuses, allowances taxed differently and mid-year starts will move the figures.
- Rent relief is capped at ₦500,000 a year regardless of what you actually pay.
- These are planning estimates, not payroll or tax filings. Confirm with your employer or an accountant before making a commitment.
Frequently asked questions
Why is my payslip different from the calculator?
Employers compute PAYE on your basic-housing-transport structure and may include allowances or benefits the calculator does not know about. Treat the result as a close planning estimate.
Does rent really reduce my tax?
Yes, annual rent reduces taxable income under the Nigeria Tax Act 2025, but the relief is capped at ₦500,000 a year.
Should I budget rent from gross or net pay?
Net. Using gross pay overstates what you can afford by roughly the size of your deductions.