A full personal tax summary for the year.
Net for the year
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Chargeable income
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PAYE
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Pension
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NHF
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Your breakdown
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One page that ties your whole year together
Most salary tools answer a narrow question: what is my monthly take-home, or what is the tax on this one figure. A year-end summary is different. It lines up everything in sequence: your gross income, the reliefs you are allowed to deduct, the chargeable income that remains, the PAYE charged on it, and the statutory contributions that come off before you ever see the money. Seeing those lines together is what makes the picture honest, because the number that matters is net for the year, not gross on your offer letter.
This tool assembles all of those lines on the structure Nigeria uses for personal income tax. Gross is what you earn. Reliefs are the deductions the law lets you take. Chargeable income is gross minus reliefs, and that figure, not your gross, is what the progressive bands act on. PAYE is the tax on the chargeable income. Pension and the National Housing Fund are separate statutory deductions that reduce your cash further. Net is what is left.
Reliefs are the part people leave on the table
Under the personal income tax framework that followed the 2025 reform, your deductible reliefs include pension, the National Housing Fund, the national health insurance scheme contribution, life-insurance or annuity premiums, owner-occupied housing-loan interest, and rent relief. Rent relief, as modelled here, is 20 percent of the annual rent you pay, capped at NGN 500,000. The pension figure this calculator uses is the employee 8 percent on monthly emolument, annualised, and the optional NHF line is 2.5 percent of monthly basic, annualised. Each relief shrinks your chargeable income, and because the bands are progressive, every naira of relief is worth your marginal rate in saved tax. People who skip the reliefs they are entitled to quietly overpay all year. Treat these rates as the figures the calculator applies and confirm the current reliefs with the FIRS or your state internal revenue service, because the reform is still adjusting several of them.
A full year, line by line
Take a worker on gross annual income of NGN 9,000,000, with monthly emolument of NGN 500,000 and monthly basic of NGN 350,000, who opts to contribute the 2.5 percent NHF. The pension relief is 8 percent of NGN 500,000 across twelve months, which is NGN 480,000. The NHF is 2.5 percent of NGN 350,000 across twelve months, which is NGN 105,000. Total reliefs come to NGN 585,000, so chargeable income is NGN 9,000,000 less NGN 585,000, or NGN 8,415,000. PAYE on that chargeable income, using the rates this calculator applies, is NGN 1,304,700. Net for the year is gross minus PAYE minus pension minus NHF, which lands at NGN 7,110,300, or about NGN 592,525 a month.
Who should run this, and a common slip
This is for salaried employees who want the full year in one view, anyone weighing a job offer who needs net rather than gross to compare fairly, and freelancers reconciling what they owe before filing. The slip to avoid is double counting. The pension and NHF lines here are both a relief that lowers your tax and a cash deduction that lowers your take-home, so they appear twice in the logic but for different reasons. Do not also subtract them again by hand from the net the tool reports. The net figure already nets them out once.
Why is my net higher than 12 times my monthly take-home?
Two reasons usually explain a gap. First, monthly PAYE is sometimes estimated and then trued up, so a single month is not always one twelfth of the annual charge. Second, one-off items like a bonus or a 13th month change the annual total without changing your regular monthly slip. This summary works from annual figures, so it captures the full year rather than a single representative month.
Does this include employer pension or only mine?
Only your own contribution affects this summary. The pension line is the employee 8 percent that comes out of your pay and also counts as a relief. Your employer's matching contribution is a cost to the company and does not reduce your take-home, so it is not part of your net. For the exact contribution split and the latest PAYE position, confirm with your pension administrator and the FIRS or your state internal revenue service.