Calculate your tax under the new Nigeria Tax Act 2025
20% relief, max ₦500K
Annual premium (max 20% of gross)
Enter your gross salary above to calculate your PAYE tax and take-home pay
First ₦800,000 of annual income completely tax-free (up from ₦200,000)
Progressive rates 0%-25%, most employees pay less tax
Pension (8%), NHF (2.5%), NHIS (5%), rent relief (up to ₦500K)
Compare old vs. new tax rates side-by-side
This calculator provides estimates based on the Nigeria Tax Act 2025. Actual tax liability may vary based on individual circumstances, additional income sources, and specific deductions. For personalized tax advice, please consult a qualified tax professional or contact the Nigeria Revenue Service (NRS). NairaTax is not responsible for any decisions made based on these calculations.
Not an employee? We have specialized calculators for freelancers, business owners, content creators, and investors.
Self-employed tax with business expense deductions. Perfect for consultants and independent contractors.
Company Income Tax (CIT) 30% + 2% Education Tax. Small companies ≤₦50M pay 0% (non-professional services).
Tax calculator for YouTube, Instagram, TikTok income. Platform-specific deductions included.
Calculate tax on dividends, interest, capital gains. All income types covered with WHT calculations.
| Annual Income Range | Tax Rate | Tax on Range |
|---|---|---|
| First ₦800,000 | 0% | ₦0 |
| ₦800,001 - ₦3,000,000 | 15% | Max ₦330,000 |
| ₦3,000,001 - ₦12,000,000 | 18% | Max ₦1,620,000 |
| ₦12,000,001 - ₦25,000,000 | 21% | Max ₦2,730,000 |
| ₦25,000,001 - ₦50,000,000 | 23% | Max ₦5,750,000 |
| Above ₦50,000,000 | 25% | 25% of excess |
Use our employee calculator above or choose a specialized calculator for your situation.
Common questions about Nigerian taxes and our calculators
The first ₦800,000 of annual income is completely tax-free. If you earn ₦800,000 or less, you pay zero income tax. This takes effect January 1, 2026.
Progressive rates effective January 2026: 0% (first ₦800K), 15% (₦800K-₦3M), 18% (₦3M-₦12M), 21% (₦12M-₦25M), 23% (₦25M-₦50M), 25% (above ₦50M).
Companies with revenue ≤₦50 million pay 0% company tax. Exception: Professional services (legal, accounting, medical, consulting) don't qualify.
You can deduct 20% of annual rent paid, up to maximum ₦500,000. This is a NEW benefit under the 2026 law - it did not exist before.
Pension (8%), NHF (2.5%), NHIS, life insurance, mortgage interest on primary home, and rent relief (20% up to ₦500K - NEW in 2026).
Clients deduct 5% withholding tax from payments. This WHT credits against your final tax - you pay less or get refund if WHT exceeds tax due.
Pensioners get extra ₦200,000 tax-free allowance beyond the standard ₦800,000 threshold - effectively ₦1,000,000 tax-free.
Dividends and interest: 10% WHT (usually final tax). Capital gains: 10% on profits from asset sales.
Register at any NRS (Nigeria Revenue Service) office or online at jtb.gov.ng. You need NIN, BVN, and valid government ID.
The Nigeria Tax Act 2025 was signed into law, but the Nigeria Revenue Service launches January 1, 2026. That's when the new rates become effective.