Free tools / Gross to net salary
Free tool · NigeriaGross to net salary calculator
Enter a gross salary and see what actually reaches the bank account after tax and pension. Built for Nigeria, using the rules that took effect in January 2026.
Your numbers
Nothing you type here is stored.
Take-home pay will appear here
Enter a gross monthly salary and press Calculate.
What this means for a raise
Hiring instead? Work out what gross salary delivers a specific take-home.
The rules this uses
Tax bands
Applied to yearly taxable pay, which is your gross less pension and any other allowed deductions. Each rate applies only to the slice of income inside that band, not to the whole salary.
| Yearly taxable pay | Tax rate |
|---|---|
| First ₦800,000 | 0% |
| ₦800,001 to ₦3,000,000 | 15% |
| ₦3,000,001 to ₦12,000,000 | 18% |
| ₦12,000,001 to ₦25,000,000 | 21% |
| ₦25,000,001 to ₦50,000,000 | 23% |
| Above ₦50,000,000 | 25% |
Calculation rules: version 2026.1. Based on the Nigeria Tax Act 2025, in effect from 1 January 2026. This is an estimate for planning, negotiating and sanity-checking a payslip. Confirm the treatment of your own package before running payroll on it.
What comes off before tax
- Pension, 8%. Charged on basic, housing and transport rather than on your whole salary. Since most people do not know their exact split, we assume those three make up 80% of gross and let you change it.
- Rent relief. The lower of 20% of your yearly rent or ₦500,000. Left out unless you enter rent, because most employers do not apply it in monthly payroll. Including it by default would show a take-home figure higher than you actually receive.
- Other deductions. National Housing Fund, health insurance and life assurance, where you actually pay them. NHF is no longer compulsory for private sector staff, so nothing is assumed.
Everything optional is switched off by default. That means the figure you see is the most cautious one, and anything you add can only improve it.
What this does and does not do
- It estimates. It is not a payroll run, and it does not replace advice on how your particular package should be treated.
- It assumes a standard monthly salary. Bonuses, thirteenth month, allowances paid in some months and not others will all move the real figure.
- It uses a share of gross for pension because pension is charged on basic, housing and transport. If your structure differs, change the percentage.
- It does not know about salary advances, loan repayments, union dues, or anything else deducted after tax.
- State tax authorities can differ in how they apply parts of the rules. This follows the national position.
Questions people ask
Usually one of three things. Pension comes off before tax and is real money leaving your account, which people forget. Tax is progressive, so a raise is taxed at your highest rate rather than your average one. And this calculator deliberately leaves out rent relief unless you enter rent, because most employers do not apply it monthly, so a figure that included it would look better than your actual payslip.
Pension is 8% of basic, housing and transport, not of your whole salary. Those three usually add up to around 80% of a package, which is what we assume. If your basic is unusually low and your allowances high, your pension will be smaller and your take-home higher than shown. Your payslip or HR can tell you the real split, and you can change the percentage.
Only if you want to see what relief you could claim. Rent relief is the lower of 20% of your yearly rent or ₦500,000, and it does reduce your tax. But it is normally claimed on assessment rather than applied by your employer each month, so entering it will usually show a higher figure than your actual monthly take-home. We leave it off so nobody budgets on money that has not arrived.
Your effective rate is total tax divided by total salary, which is what you actually pay overall. Your marginal rate is what the next naira gets taxed at, which is always higher because of the bands. When you are negotiating a raise, the marginal rate is the one that tells you how much of it you will keep.
No, and please do not. It is a good estimate for planning, negotiating, and sanity-checking a payslip. Real payroll needs your actual salary structure, your state authority, and someone accountable for the filing. That is a service rather than a calculator, and it is what we do.
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