FG Implements New PAYE Tax Rates for 2026 – See What You’ll Be Paying

It’s official. The Federal Government has flipped the switch on the most significant tax overhaul in Nigeria’s history.

As of January 1, 2026, the old Personal Income Tax rules have been repealed and replaced by the Nigeria Tax Act.

While the news has sparked mixed reactions, the big win is for low-income earners.

The “tax-free” bracket has been raised significantly.

However, for high earners, the progressive rates now climb up to 25% for income over ₦50 million.

Summary of the New 2026 Tax Bands:

• First ₦800,000: 0% (Tax-Free)
• Next ₦2,200,000: 15%
• Next ₦9,000,000: 18%
• Above ₦50,000,000: 25%

Are you among the millions of Nigerians who will stop paying tax this month? Use this [2026 Nigeria Tax Calculator] to see if your salary is exempt under the new NRS system and compare it with what you paid last year.