A bonus or 13th month pay is added to your yearly income, so it is taxed at your highest band, usually 15% or 18% for most workers under the 2026 rules. Enter your monthly pay and the bonus below to see the exact tax and what you keep.
How the Bonus Tax Calculator works
- Enter your normal gross monthly pay.
- Enter the bonus or 13th month amount.
- The calculator works out your yearly tax with and without the bonus.
- The difference is the tax on the bonus.
Worked example
A bank officer on ₦400,000 a month gets a 13th month bonus of ₦400,000.
Tax on the bonus: ₦72,000
She keeps: ₦328,000
Tax rate on the bonus: 18%
Common mistakes to avoid
- Expecting the bonus to be taxed at your average rate
- Employers not deducting PAYE on bonuses
- Spending the bonus before seeing the net amount
Need a different calculator?
Why bonuses feel heavily taxed
Your salary already uses up the lower bands, so every naira of bonus is taxed at your top rate. That is why a bonus loses a bigger share to tax than your average rate suggests.
Employers paying bonuses
Deduct PAYE on the bonus in the month it is paid, using the yearly calculation, so staff don’t face a balance at the end of the year.
Frequently asked questions
Is 13th month salary taxable in Nigeria?
Yes. It is part of your employment income and is taxed through PAYE.
Is pension deducted from a bonus?
Usually not, unless your employer includes it. This calculator assumes no pension on the bonus.
Are these the latest tax rules?
They follow the Nigeria Tax Act 2025, which took effect on 1 January 2026, and were last checked on the date shown on this page. Tax rules can change, so confirm big decisions with a tax adviser or the Nigeria Revenue Service.
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