Salary After Tax in Nigeria (2026)

Last updated: January 2026 planning

“Salary after tax” usually means your take-home pay — what you actually have left after PAYE deductions, other deductions (pension, NHF, etc.), and real-life expenses like rent.

This guide shows how to think about take-home pay, gives practical examples, and explains why some people believe “banks are collecting tax from deposits.”

Disclaimer: This page is for education and budgeting. Your official PAYE can differ based on allowances, reliefs, payroll rules, and your state’s approach. For official confirmation, consult HR/payroll or a qualified tax professional.

1) Why PAYE feels monthly but is calculated annually

Most employers deduct PAYE monthly, but the logic usually starts from an estimated annual income. That’s why a salary change or consistent allowance can shift your PAYE amount.

The simplest way to plan is: treat your pay as annual (monthly × 12), apply deductions/reliefs where relevant, then estimate annual tax and convert back to a monthly deduction.

2) Examples: Take-home thinking (not just gross salary)

These examples show how to plan. The best approach is to enter your numbers into the calculator on the homepage.

Example A: Single worker budgeting

Goal: understand monthly take-home after rent and deductions.

Monthly income (gross)

₦300,000

Rent (yearly)

₦1,200,000

Pension (monthly)

₦20,000

Other deductions (monthly)

₦5,000

Many people forget to convert yearly rent into a monthly cost. ₦1,200,000 ÷ 12 = ₦100,000 per month. Once you treat rent like a monthly cost, your budgeting becomes realistic.

Open the calculator and enter these numbers to see your estimated monthly tax and take-home.

Example B: Married household planning

Goal: estimate total household take-home for rent and bills.

Partner 1 monthly income

₦450,000

Partner 2 monthly income

₦250,000

Rent (monthly)

₦150,000

Total household gross

₦700,000

PAYE is often assessed per individual, but household planning is still useful: it helps couples estimate combined take-home income for expenses, savings, and emergencies.

3) “Banks will collect tax from bank deposits” — what’s really happening

People often call any bank deduction “tax.” In reality, deductions generally fall into these categories:

A) Transaction-related charges/levies

Some bank deductions are triggered by transfers or services. If you transfer often, small charges can add up and look like “tax being taken from my money.”

B) Withholding tax on interest (where applicable)

If your account earns interest, a withholding tax may apply to the interest earned (not your principal balance). This can show as a deduction or a smaller “net interest” deposit.

C) Policy changes that affect cash/transfer behavior

Banking and payment policies can change, and banks may implement new charges or limits as regulations evolve. Always check your bank’s official fee guide and your statement description.

Important: This guide is about budgeting and compliance. Do not follow informal “avoid charges” advice that can lead to fraud risk, account restrictions, or compliance issues.

4) Safer ways to approach it (legal + practical)

Track your statement: review your bank statement monthly so deductions don’t surprise you.
Budget for transfer costs: if you send money frequently, include transfer charges in your budget.
Reduce unnecessary transfers: fewer transfers can reduce fees (this is cost control, not evasion).
Separate savings from spending: keeping budgets clear reduces confusion about deductions.
Keep records: salary slips, pension statements, and receipts help if you ever need to explain income sources.
Ask your bank: if a charge looks wrong, raise a support ticket and request clarification.

5) Next step: Calculate your own take-home

Use your real monthly income, rent, and deductions on the calculator. You’ll get: annual income, estimated monthly tax, annual tax, effective tax rate, and take-home.

→ Open Nigeria Tax Calculator 2026