07/01/2026
*PUBLIC NOTICE ON PAYE TAX COMPUTATION FOR THE YEAR 2026*
This is to notify employers, employees, and the general public that Pay-As-You-Earn (PAYE) tax computation for the year 2026 shall be carried out in accordance with the Nigeria Tax Act, 2025, which became effective on 1 January 2026, and other relevant tax regulations.
1. Basis of PAYE Computation
PAYE is computed on the annual income of an employee, and the resulting tax liability is apportioned monthly for deduction and remittance to the relevant tax authority.
2. Statutory and Allowable Deductions
*Before applying PAYE tax rates, employers are required to deduct statutory and allowable reliefs from the employee’s gross income. These include, but are not limited to*:
• Employee pension contribution (8%)
• Approved life assurance premiums
• Mortgage interest on owner-occupied residential property
• Rent relief (where applicable and supported by documentation)
• National Housing Fund (NHF) contribution (where applicable)
• National Health Insurance Scheme (NHIS) contribution
• Any other reliefs expressly allowed under tax laws and regulations
The balance after these deductions constitutes the chargeable income.
3. *Applicable PAYE Tax Rates (2026)*
Chargeable Income (Per Annum) Tax Rate
First ₦800,000 0%
Next ₦2,200,000 15%
Next ₦9,000,000 18%
Next ₦13,000,000 21%
Next ₦25,000,000 23%
Above ₦50,000,000 25%
4. Compliance Requirement
*Employers are required to*:
• Deduct PAYE correctly from employees’ emoluments
• Remit PAYE to the relevant tax authority on or before the statutory due date
• Maintain proper payroll records and supporting documentation for audit purposes
Failure to comply may attract penalties and interest as prescribed by law.
Signed:
*BridgedWall Professional*
*(Audit-Accounting-Taxation-CAC Services & Business Advisory)*
*07031642964*
