Nigeria • 2026 tax rules

How to Calculate Personal Income Tax in Nigeria

Enter your total annual income and statutory deductions to see your Personal Income Tax under the Nigeria Tax Act 2026. Works for employees, freelancers and self-employed individuals.
Annual Personal Income Tax
₦713,400
Taxable income ₦5,130,000 • Effective rate 11.89% • Deductions ₦870,000 (incl. rent relief ₦240,000)
BracketRateTax
First ₦800,0000%₦0
₦800,001 — ₦3,000,00015%₦330,000
₦3,000,001 — ₦12,000,00018%₦383,400
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Legal basis: calculations follow the Nigeria Tax Act 2025 and Tax Administration Act 2025. See the tax law library.

How Personal Income Tax works in Nigeria (2026)

Personal Income Tax (PIT) is charged on the worldwide income of Nigerian residents and on the Nigeria-sourced income of non-residents. The Nigeria Tax Act 2026 replaced the old 7%–24% brackets with a simpler structure:

  • First ₦800,000 — 0% (tax-free)
  • ₦800,001 – ₦3,000,000 — 15%
  • ₦3,000,001 – ₦12,000,000 — 18%
  • ₦12,000,001 – ₦25,000,000 — 21%
  • ₦25,000,001 – ₦50,000,000 — 23%
  • Above ₦50,000,000 — 25%

Deductions before tax

Subtract pension, NHIS, NHF, life insurance premiums, and rent relief (20% of rent capped at ₦500,000) from your gross income to arrive at taxable income.

Frequently asked questions

Who pays Personal Income Tax in Nigeria?+

Every Nigerian resident earning taxable income — employees, freelancers, business owners and consultants — must file and pay PIT to the State Inland Revenue Service (SIRS) of their state of residence.

What is the tax-free threshold?+

Under the 2026 Tax Act, the first ₦800,000 of taxable income is taxed at 0%.

How is taxable income calculated?+

Taxable income = Gross income − (Pension + NHF + NHIS + Life insurance + Rent relief). Rent relief is 20% of rent paid, capped at ₦500,000.

When are annual PIT returns due?+

Individuals must file annual returns by 31 March of the following year with their State Internal Revenue Service.

Do freelancers pay Personal Income Tax?+

Yes. Freelancers and self-employed individuals must self-assess and file PIT annually based on their net business income.

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