Nigerian Tax System 2026
All major taxes under the Nigeria Tax Act 2025 — signed June 26 2025, effective January 1 2026. The biggest overhaul since 1999. All old acts (PITA, CITA, VATA, CGT Act) repealed and merged into one unified statute.
NRS (formerly FIRS) · Effective 1 January 2026
Key 2026 Changes: First ₦800k of personal income tax-free · Old CRA replaced by Rent Relief · CIT small-company threshold → ₦100M · Education Tax + NASENI + NITDA merged into 4% Development Levy · CGT restructured (companies now 30%) · FIRS renamed NRS
Am I Taxable?
Not sure if you owe tax? Answer 4 quick questions and get a clear verdict.
Start the wizard →
PIT / PAYE
Tax on your salary or personal income. Deducted monthly by your employer.
0% – 25% · New bands
CIT
Tax on company profits. Small businesses (≤₦100M) now fully exempt.
0% (small) / 30% (others)
VAT
7.5% added to most goods and services. Businesses collect it for government.
7.5% standard rate
WHT
Tax deducted at source when receiving rent, dividends, or contract payments.
5% – 10%
CGT
Tax on profit from selling property or shares. Rates restructured in 2026.
PIT rate (indiv) / 30% (corp)
Dev Levy
New 4% levy replacing Education Tax, NASENI & NITDA — one payment.
4% of assessable profit
Tax Dashboard
See your total tax burden across all categories in one view.
Combined view →
What Changed in 2026
| Item | Old (pre-2026) | 2026 (NTA) |
|---|---|---|
| Top PIT rate | 24% | 25% |
| PIT zero band | None — 7% from ₦1 | ₦800,000 exempt |
| PIT relief | CRA: ₦200k + 20% gross | Rent relief: 20% rent, max ₦500k |
| CIT small company | ≤₦25M = 0% | ≤₦100M + ≤₦250M assets = 0% |
| CIT medium tier | 20% (₦25M–₦100M) | ELIMINATED |
| CGT individuals | 10% flat | PIT progressive (0–25%) |
| CGT companies | 10% flat | 30% |
| Education Tax | 2.5% separate | Merged → 4% Dev Levy |
| PIT minimum tax | 1% of gross | Abolished |
| Tax authority | FIRS | NRS |
Who Pays What?
| If you are… | Main tax(es) |
|---|---|
| Salaried employee | PIT / PAYE — deducted by employer |
| Freelancer / self-employed | PIT — file annually |
| Registered company | CIT + VAT + Development Levy |
| Selling property or shares | Capital Gains Tax (CGT) |
| Receiving dividends or rent | Withholding Tax (WHT) |
| Signing a lease or contract | Stamp Duty |
Not Sure Where to Start?
Use the "Am I Taxable?" Wizard
Answer 4 plain-language questions about your situation — employed, self-employed, running a business, sold an asset — and you'll get a clear Yes / No / Maybe verdict, an explanation of why, and a direct link to the right calculator. No tax knowledge needed.
Am I Taxable?
Answer a few plain-language questions about your situation. You'll get a clear verdict on whether you owe tax and exactly what type — no prior tax knowledge needed.
What best describes your main situation?
Pick the option that fits you best right now. You can always come back and change it.
How much do you earn per year (gross)?
Include your basic salary plus all allowances your employer pays you. A rough estimate is fine.
What is your approximate annual income from your work?
All money you received from clients, customers, or your business activities in the past year.
What is your company's annual turnover (total revenue)?
Total money the business received from sales or services before deducting any expenses.
What did you sell or dispose of?
Select the type of asset you sold or transferred ownership of.
Personal Income Tax (PIT) / PAYE 2026
Tax on personal earnings. If employed, your employer deducts it monthly as PAYE. The first ₦800,000 of chargeable income is now completely tax-free.
NTA 2025, Section 58 & Fourth Schedule · Effective 1 January 2026
2026 relief change: The old CRA (₦200k + 20% of gross) is abolished. It's replaced by a Rent Relief — 20% of rent you actually pay, capped at ₦500,000. If you own your home or live rent-free, you get no personal relief (pension & NHF still apply).
Income Details
What to enter
All earnings from your employer in a full year — basic salary plus every allowance they pay you. Multiply monthly figures by 12.Your core salary before allowances. Monthly basic × 12 = annual. E.g., ₦250k/month → ₦3,000,000.
₦
Please enter a valid amount (0 or more)
Monthly basic × 12
Any housing allowance your employer pays — even if paid directly to your landlord on your behalf.
₦
Please enter a valid amount (0 or more)
Any transport, car, or fuel allowance from your employer. A company car is handled separately.
₦
Please enter a valid amount (0 or more)
Utilities, leave, medical, meal, hazard allowances — add them all here.
₦
Please enter a valid amount (0 or more)
Utilities, medical, meal, leave allowances, etc.
Freelance income, rent income, bonuses from outside employment. Leave as 0 if none.
₦
Please enter a valid amount (0 or more)
Freelance, side income, bonuses, etc.
Reliefs & Deductions
What is a "relief"?
A relief reduces your taxable income — you pay tax on a smaller number. Toggle each one that applies to you.Rent Relief (20% of annual rent, max ₦500k)
Only if you pay rent to a landlord. Homeowners do not qualify. New in 2026 — replaces the old CRA.
Total rent paid to your landlord per year. Relief = 20% of this, capped at ₦500,000.
₦
Please enter a valid amount (0 or more)
Relief = 20% of rent paid · Maximum ₦500,000
Employee Pension Contribution (8%)
Deducted on Basic + Housing + Transport. Goes into your RSA retirement account. Required where employer has a pension scheme.
NHF Contribution (2.5% of basic)
National Housing Fund. Deducted from basic salary. Required for most formal-sector employees.
Life Assurance Premium
Qualifying life insurance premiums are deductible. Documentary proof required from your insurer.
Tax Computation
2026 PIT Bands
Tax is applied in layers — only the income within each band is taxed at that band's rate. Higher income does not make lower bands more expensive.
| Annual Chargeable Income | Rate |
|---|---|
| First ₦800,000 | 0% — Tax Free |
| Next ₦2,200,000 (up to ₦3M) | 15% |
| Next ₦9,000,000 (up to ₦12M) | 18% |
| Next ₦13,000,000 (up to ₦25M) | 21% |
| Next ₦25,000,000 (up to ₦50M) | 23% |
| Above ₦50,000,000 | 25% |
Example: Chargeable income = ₦5,000,000 → 0% on ₦800k (₦0) + 15% on ₦2.2M (₦330,000) + 18% on ₦2M (₦360,000) = ₦690,000 total. NOT 18% on the full ₦5M.
Companies Income Tax (CIT) 2026
Tax on company profits. Two tiers only — small companies pay 0%, all others pay 30%. The 20% medium tier is gone. Professional services firms cannot qualify as small companies.
NTA 2025 · Effective 1 January 2026
Key change: Small company threshold raised from ₦25M to ₦100M turnover (AND fixed assets ≤ ₦250M). Qualifying companies pay 0% CIT. Law firms, accountants, consultants, and medical practices cannot qualify as small companies regardless of turnover.
Company Details
What is assessable profit?
Profit calculated by tax rules — may differ from your accounting profit. Start with pre-tax profit, add back disallowed expenses, subtract allowable deductions. Your accountant provides this figure.Total sales before any deductions. Determines small company status (≤₦100M).
₦
Please enter a valid amount (0 or more)
Determines your CIT tier — small (0%) or standard (30%)
Profit after all allowable business expenses, but before capital allowances or tax losses. Ask your accountant.
₦
Please enter a valid amount (0 or more)
Tax deductions for wear on business assets — machinery, vehicles, computers. Rates: 10%, 20% or 25% by asset class.
₦
Please enter a valid amount (0 or more)
Annual wear-and-tear deduction on qualifying business assets
If your company made a loss in prior years, you can deduct it from this year's profit. Check prior year tax assessment.
₦
Please enter a valid amount (0 or more)
Professional services firms cannot qualify as small companies regardless of turnover
Development Levy (4%)
Include 4% Development Levy on assessable profit
Replaces Education Tax, NASENI, NITDA & Police Trust Fund. Non-small companies only. Computed on assessable profit (before capital allowances/losses).
CIT Computation
CIT Tiers (2026)
| Company Type | Criteria | Rate |
|---|---|---|
| Small Company | Turnover ≤₦100M AND Fixed Assets ≤₦250M AND not professional services | 0% |
| All Others | Turnover >₦100M, OR assets >₦250M, OR professional services firm | 30% |
Note: The old 20% medium company tier was eliminated in 2026. Verify your new classification carefully.
Value Added Tax (VAT)
7.5% on most goods and services. Businesses collect it from customers and remit the net amount to NRS monthly. Rate unchanged; however, more items are now "zero-rated" instead of "exempt" under NTA 2025.
NTA 2025, Part VI · Rate: 7.5% (unchanged)
Zero-rated vs Exempt: Zero-rated = 0% VAT AND you can reclaim input VAT. Exempt = no VAT charged but you also cannot reclaim input VAT. NTA 2025 reclassified basic food, textbooks, and electric vehicles from exempt to zero-rated.
VAT Calculator
How VAT works
You charge 7.5% on what you sell (Output VAT). You pay 7.5% on what you buy (Input VAT). You remit only the difference to NRS. Output > input → pay. Input > output → credit/refund owed.Total value of taxable sales for the period, NOT including the 7.5% VAT you charge. Exclude zero-rated and exempt items.
₦
Please enter a valid amount (0 or more)
Taxable sales only — exclude zero-rated and exempt items
Total value of taxable goods and services you bought for your business. The 7.5% VAT on these can be reclaimed from NRS.
₦
Please enter a valid amount (0 or more)
VAT-Free Items (2026)
Zero-rated (0% VAT — input VAT reclaimable):
· Basic food items (unprocessed) · Educational materials & books
· All exported goods and services · Electricity (grid distribution)
· Electric vehicles New 2026 · Pharmaceutical & medical products
Exempt (no VAT — no input recovery):
· Financial services (banking, insurance) · Baby products
· Agricultural machinery · Commercial aircraft & spare parts
· Basic food items (unprocessed) · Educational materials & books
· All exported goods and services · Electricity (grid distribution)
· Electric vehicles New 2026 · Pharmaceutical & medical products
Exempt (no VAT — no input recovery):
· Financial services (banking, insurance) · Baby products
· Agricultural machinery · Commercial aircraft & spare parts
VAT Computation
Withholding Tax (WHT)
When you pay certain people or companies, you must deduct a percentage and remit it to NRS. The recipient gets the net amount and uses the WHT credit to offset their annual tax liability. It is not a final tax.
NTA 2025 · WHT Regulations 2024
Small company exemption: Small companies (turnover ≤₦100M) do not need to deduct WHT on transactions of ₦2 million or less, provided the supplier holds a valid TIN.
WHT Calculator
How WHT works
You withhold when you're the payer — paying a contractor, landlord, or consultant. Deduct the WHT amount, pay the recipient the net, and remit the WHT to NRS by the 21st of the following month. Issue a WHT credit note to the recipient.The full agreed amount before any WHT deduction. You pay the recipient: Gross minus WHT.
₦
Please enter a valid amount (0 or more)
WHT Computation
WHT Rate Reference
| Payment Type | Company | Individual |
|---|---|---|
| Dividends | 10% | 10% |
| Interest | 10% | 10% |
| Royalties | 10% | 5% |
| Rent | 10% | 10% |
| Contracts (goods) | 5% | 5% |
| Contracts (labour) | 5% | 5% |
| Commissions | 10% | 5% |
| Consultancy | 10% | 5% |
| Management fees | 10% | 10% |
| Director fees | 10% | 10% |
Capital Gains Tax (CGT) Restructured 2026
Tax on profit from disposing of assets — property, shares, land, or businesses. Companies now pay 30%; individuals pay at their personal income tax rate. The old flat 10% rate is abolished.
NTA 2025 · CGT restructured from 1 January 2026
2026 restructure: Old flat 10% gone. Companies: 30%. Individuals: 0–25% (same as your PIT rate). New low-value exemption: proceeds below ₦150M AND gain ≤ ₦10M are fully exempt. Crypto and digital asset gains are now taxable.
Asset Disposal Details
What triggers CGT?
Any sale, gift, exchange or transfer of an asset. Applies to: property, land, shares, business equipment, and digital/crypto assets. Even gifts count — use market value if no cash changes hands.How much you received. If gifted or transferred below market value, use market value instead.
₦
Please enter a valid amount (0 or more)
What you originally paid for the asset. Keep your purchase receipt or deed. If inherited, use market value at date of inheritance.
₦
Please enter a valid amount (0 or more)
Legal fees, agent commissions, survey costs paid on disposal. These reduce your chargeable gain.
₦
Please enter a valid amount (0 or more)
Legal fees, agent commissions, survey costs
Money spent enhancing the asset after acquisition — renovation, extensions. Routine maintenance does NOT count.
₦
Please enter a valid amount (0 or more)
Renovation, extensions — not routine maintenance
Include this gain in your total income to determine which PIT band applies. CGT for individuals uses the marginal PIT rate.
₦
Please enter a valid amount (0 or more)
Determines your PIT band and therefore your CGT rate
CGT Computation
Development Levy (4%) New 2026
A unified 4% levy on company profits replacing the old Education Tax (2.5%), NASENI (0.25%), NITDA (1%), and Police Trust Fund. Small companies and non-residents are fully exempt.
NTA 2025, Section 59 · Effective 1 January 2026
Simplified compliance: One 4% Development Levy replaces 4–5 separate levies with separate filings. Computed on assessable profit. Small companies (turnover ≤₦100M) are fully exempt.
Development Levy Calculator
Determines small company status. Turnover ≤₦100M = exempt from this levy.
₦
Please enter a valid amount (0 or more)
Profit before capital allowances and tax losses — same base as CIT assessable profit. The 4% is calculated on this.
₦
Please enter a valid amount (0 or more)
Before capital allowances — same base as CIT
What this replaces
Old system: Education Tax 2.5% + NASENI 0.25% + NITDA 1% + Police Trust Fund 0.005% = up to 3.755% across 4 separate filings.New: One 4% Development Levy. One filing. One remittance.
Development Levy
Pension Contributions & NHF
Mandatory monthly savings for retirement (RSA pension) and housing (NHF). Both contributions reduce your taxable PIT income. Pension rates under the Pension Reform Act 2014 are unchanged in NTA 2025.
Pension Reform Act 2014 · NHF Act · NTA 2025 (deductions retained)
Monthly Payroll Details
What is pension?
Every month, you (employee) contribute 8% and your employer contributes 10% of the pension base into your RSA with a licensed PFA. This is your money — not a tax — and both contributions are deductible from your PIT income.Core monthly pay before allowances. Pension is calculated on Basic + Housing + Transport combined.
₦
Please enter a valid amount (0 or more)
₦
Please enter a valid amount (0 or more)
₦
Please enter a valid amount (0 or more)
Monthly Pension & NHF
Contribution Rates
| Contribution | Employee | Employer | Base |
|---|---|---|---|
| Pension (RSA) | 8% | 10% | Basic+Housing+Transport |
| NHF | 2.5% | — | Basic salary |
| NSITF | — | 1% | Gross payroll |
| ITF | — | 1% | Annual payroll |
Tip: Enabling pension and NHF deductions in the PIT calculator shows your actual tax savings from these contributions.
Stamp Duty
A fee on official documents — property leases, mortgages, share transfers, contracts, and electronic bank transfers above ₦10,000. Makes documents legally enforceable.
NTA 2025 · Finance Act 2020 (e-transfer ₦50)
Stamp Duty Calculator
When do you pay Stamp Duty?
Signing a rental/lease agreement, taking a mortgage, transferring company shares, receiving a bank transfer ≥₦10,000, or executing a contract. Stamp duty makes the document enforceable in court.For leases, enter the annual rent. For mortgages and share transfers, enter the total transaction value.
₦
Please enter a valid amount (0 or more)
Stamp Duty
Combined Tax Burden Dashboard
Your total estimated tax and levy exposure across all categories in one view, based on the figures you've entered in each calculator. Fill in the individual calculators first, then return here.
This dashboard reads the values calculated in each individual tab. For the most accurate totals, fill in the PIT, CIT, VAT, WHT and other calculators first, then come back here.
Breakdown
Full Rate Reference — NTA 2026
All current rates in one place, updated for the Nigeria Tax Act 2025 effective 1 January 2026.
PIT Bands (1 Jan 2026)
| Annual Chargeable Income | Rate | Max Tax on Band |
|---|---|---|
| First ₦800,000 | 0% | ₦0 — Exempt |
| Next ₦2,200,000 | 15% | ₦330,000 |
| Next ₦9,000,000 | 18% | ₦1,620,000 |
| Next ₦13,000,000 | 21% | ₦2,730,000 |
| Next ₦25,000,000 | 23% | ₦5,750,000 |
| Above ₦50,000,000 | 25% | On excess |
WHT Rates
| Payment Type | Company | Individual |
|---|---|---|
| Dividends | 10% | 10% |
| Interest | 10% | 10% |
| Royalties | 10% | 5% |
| Rent (land/buildings) | 10% | 10% |
| Contracts (goods) | 5% | 5% |
| Contracts (labour) | 5% | 5% |
| Commission / agency | 10% | 5% |
| Consultancy | 10% | 5% |
| Management fees | 10% | 10% |
| Director fees | 10% | 10% |
CIT & Corporate Levies
| Tax / Levy | Rate | Base |
|---|---|---|
| CIT — Small Company | 0% | ≤₦100M turnover, ≤₦250M assets |
| CIT — All Others | 30% | Taxable profit |
| Development Levy | 4% | Assessable profit (non-small) |
| VAT | 7.5% | Taxable supply value |
| CGT — Companies | 30% | Net gain |
| CGT — Individuals | PIT rate | 0–25% by income band |
| Min ETR (Multinationals) | 15% | Group revenue ≥ €750M |
Pension, NHF & Stamp Duty
| Item | Rate | Base |
|---|---|---|
| Pension (employee) | 8% | Basic+Housing+Transport |
| Pension (employer) | 10% | Basic+Housing+Transport |
| NHF (employee) | 2.5% | Basic salary |
| NSITF (employer) | 1% | Gross payroll |
| Stamp — e-transfer | ₦50 flat | Transfers ≥ ₦10,000 |
| Stamp — share transfer | 0.75% | Transaction value |
| Stamp — lease ≤1yr | 0.78% | Annual rent |
| Stamp — lease 1–3yr | 3% | Annual rent |
| Stamp — lease 3–7yr | 6% | Annual rent |