On a ₦400,000 monthly salary in 2026, PAYE is about ₦48,740 a month (₦584,880 a year), after 8% pension. You take home about ₦319,260. If you pay rent and claim rent relief, the tax falls. Change the figures below to match your payslip.
How the ₦400,000 Salary Tax Calculator works
- Yearly pay: ₦400,000 × 12 = ₦4,800,000.
- Pension (8%) of ₦384,000 comes off before tax.
- The first ₦800,000 is taxed at 0%, then 15%, 18% and so on.
- Rent relief, NHF and insurance reduce the tax further.
Worked example
An employee earns ₦400,000 a month and contributes 8% pension.
Yearly gross: ₦4,800,000
Pension: ₦384,000
Taxable income: ₦4,416,000
Tax: ₦584,880 a year (₦48,740 a month), top band 18%
Take-home: ₦319,260 a month
With ₦1,200,000 yearly rent claimed as rent relief, PAYE drops to ₦45,140 a month and take-home rises to ₦322,860.
Common mistakes to avoid
- Using the old 2025 tax bands
- Forgetting to claim rent relief
- Comparing take-home pay without counting pension
Need a different calculator?
Who earns about ₦400,000 a month
₦400,000 a month is typical for senior officers and team leads. At ₦400,000 a month, a good part of income is taxed at 18%, so rent relief and pension matter more.
How the 2026 bands apply
Your yearly taxable income of ₦4,416,000 is taxed in slices: the first ₦800,000 at 0%, the next ₦2.2 million at 15%, and the part above ₦3 million at 18%. That makes your effective tax rate 12.19% of gross pay.
Frequently asked questions
How much is PAYE on ₦400,000 a month?
About ₦48,740 a month with 8% pension and no other reliefs, under the 2026 bands.
Does rent relief reduce my tax?
Yes. With ₦1,200,000 yearly rent, PAYE on this salary is ₦45,140 a month.
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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