| Bracket | Rate | Tax |
|---|---|---|
| First ₦800,000 | 0% | ₦0 |
| ₦800,001 — ₦3,000,000 | 15% | ₦330,000 |
| ₦3,000,001 — ₦12,000,000 | 18% | ₦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.
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:
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.
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.
Under the 2026 Tax Act, the first ₦800,000 of taxable income is taxed at 0%.
Taxable income = Gross income − (Pension + NHF + NHIS + Life insurance + Rent relief). Rent relief is 20% of rent paid, capped at ₦500,000.
Individuals must file annual returns by 31 March of the following year with their State Internal Revenue Service.
Yes. Freelancers and self-employed individuals must self-assess and file PIT annually based on their net business income.
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