Nigerian Tax System 2026
All major taxes under the Nigeria Tax Act 2025 — effective 1 January 2026. The biggest overhaul since 1999. All old acts (PITA, CITA, VATA, CGT Act) consolidated into one unified statute.
NRS (formerly FIRS) · Effective 1 January 2026
Key 2026 Changes: First ₦800k now tax-free · Old CRA replaced by Rent Relief · CIT small-co. threshold → ₦100M · Edu Tax + NASENI + NITDA merged into 4% Dev Levy · CGT restructured · FIRS renamed NRS
Am I Taxable?
4-question wizard — get a clear Yes/No verdict
Start →
PIT / PAYE
Tax on salary or personal income
0% – 25% · New bands
CIT
Tax on company profits
0% (small) / 30%
VAT
7.5% on goods and services
7.5% standard
WHT
Tax deducted at source on payments
5% – 10%
CGT
Tax on gain from asset disposal
PIT rate / 30% (corp)
Dev Levy
Replaces Edu Tax, NASENI, NITDA
4% of assessable profit
Tax Dashboard
Combined burden across all taxes
Combined view →
What Changed in 2026
| Item | Old | 2026 (NTA) |
|---|---|---|
| Top PIT rate | 24% | 25% |
| PIT zero band | None | ₦800,000 exempt |
| PIT relief | CRA: ₦200k + 20% | Rent relief: 20%, max ₦500k |
| CIT small co. | ≤₦25M = 0% | ≤₦100M + ≤₦250M assets = 0% |
| CIT medium tier | 20% | ELIMINATED |
| CGT individuals | 10% flat | PIT progressive (0–25%) |
| CGT companies | 10% flat | 30% |
| Edu Tax / levies | Separate 2.5%+ | 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 + Dev Levy |
| Selling property / shares | Capital Gains Tax |
| Receiving dividends / rent | Withholding Tax (WHT) |
| Signing a lease / contract | Stamp Duty |
Not Sure Where to Start?
Use the Wizard
Answer 4 plain-language questions about your situation — employed, self-employed, running a business, sold an asset — and get a clear Yes / No / Maybe verdict with a direct link to the right calculator. No tax knowledge needed.Am I Taxable?
Answer a few plain-language questions. You'll get a clear verdict on whether you owe tax and what type — no prior tax knowledge needed.
What best describes your main situation?
Pick the option that fits you best. You can always come back and change it.
I work for a company or employer
Salaried, contract staff, civil servant — someone issues you a payslip
I work for myself / freelancer
Consultant, sole trader, trader, artisan — no employer
I own a registered company (RC number)
Limited liability company registered with CAC
I sold property, shares or land
Real estate, investment property, company shares, farmland
I'm not currently earning any income
Student, unemployed, retired with no pension income
How much do you earn per year (gross)?
Include your basic salary plus all allowances. A rough estimate is fine.
Below ₦800,000 per year
Less than ₦67,000 per month total
₦800,000 – ₦5,000,000 per year
₦67k – ₦417k per month total
Above ₦5,000,000 per year
More than ₦417k per month total
What is your approximate annual income from your work?
All money received from clients, customers, or business activities in the past year.
Below ₦800,000 per year
Small or irregular earnings
₦800,000 – ₦5,000,000 per year
Moderate regular business income
Above ₦5,000,000 per year
Substantial business income
What is your company's annual turnover?
Total money the business received before deducting any expenses.
Below ₦100 million
Small or micro business
₦100 million or more
Medium or large business
What type of asset did you sell or dispose of?
Select the type of asset you sold or transferred ownership of.
My main / primary home
The house where I live as my primary residence
Investment property, land or shares
Not my primary home — investment asset, shares, farmland
Government bonds or securities
Federal or State Government bonds, treasury bills
Personal Income Tax (PIT) / PAYE 2026
Tax on personal earnings. Employer deducts it monthly as PAYE. The first ₦800,000 of chargeable income is now completely tax-free.
NTA 2025, Section 58 & Fourth Schedule2026: Old CRA abolished. Replaced by Rent Relief — 20% of rent actually paid, capped at ₦500,000. Homeowners get no personal relief (pension & NHF still apply). Minimum tax of 1% abolished.
Income Details
What to enter
All earnings from your employer in a full year — basic salary plus every allowance. Multiply monthly figures by 12.?
Your core salary before allowances. Monthly basic × 12. E.g. ₦250k/month → ₦3,000,000.
₦
Enter a valid amount (0 or more)
Monthly basic × 12
?
Any housing allowance your employer pays — even if paid directly to your landlord.
₦
Enter a valid amount
?
Any transport, car or fuel allowance from your employer.
₦
Enter a valid amount
?
Utilities, leave, medical, meal, hazard allowances — add them all here.
₦
Enter a valid amount
?
Freelance income, rental income, bonuses outside employment. Leave as 0 if none.
₦
Enter a valid amount
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 rent, max ₦500k)
Only if you pay rent to a landlord. Homeowners do not qualify. New in 2026 — replaces old CRA.
?
Total rent paid per year. Relief = 20% of this, capped at ₦500,000.
₦
Enter a valid amount
Relief = 20% of rent · max ₦500,000
Employee Pension (8%)
On Basic + Housing + Transport. Goes into your RSA. Required where employer has a pension scheme.
NHF Contribution (2.5% of basic)
National Housing Fund. Required for most formal-sector employees.
Life Assurance Premium
Qualifying life insurance premiums are deductible. Documentary proof required.
Tax Computation
2026 PIT Bands
Tax is applied in layers — only income within each band is taxed at that rate. Higher income does not increase tax on lower bands.
| Annual Chargeable Income | Rate |
|---|---|
| First ₦800,000 | 0% — Free |
| 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% |
Example: Chargeable income = ₦5M → 0% on ₦800k (₦0) + 15% on ₦2.2M (₦330k) + 18% on ₦2M (₦360k) = ₦690,000 total. NOT 18% on the full ₦5M.
Companies Income Tax (CIT) 2026
Tax on company profits. Two tiers only — small companies 0%, all others 30%. The 20% medium tier is gone. Professional services firms cannot qualify as small companies.
NTA 2025 · Effective 1 January 2026Key change: Small company threshold raised to ₦100M turnover (AND fixed assets ≤ ₦250M). Law firms, accountants, consultants, medical practices cannot qualify as small companies regardless of turnover.
Company Details
?
Total sales before any deductions. Determines small company status (≤₦100M).
₦
Enter a valid amount
Determines CIT tier — small (0%) or standard (30%)
?
Profit after allowable expenses, before capital allowances or tax losses. Ask your accountant.
₦
Enter a valid amount
?
Tax deductions for wear on business assets — machinery, vehicles, computers. Rates: 10%, 20% or 25% by asset class.
₦
Enter a valid amount
?
Prior year losses reduce this year's taxable profit. Check prior year tax assessment.
₦
Enter a valid amount
Professional services firms cannot qualify as small companies
Development Levy (4%)
Include 4% Development Levy
Replaces Edu 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 | Turnover ≤₦100M AND assets ≤₦250M AND not professional services | 0% |
| All Others | Turnover >₦100M, OR assets >₦250M, OR professional services | 30% |
Note: Old 20% medium company tier 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.
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 cannot reclaim input VAT either. NTA 2025 moved 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.?
Total value of your taxable sales, NOT including the 7.5% VAT. Exclude zero-rated and exempt items.
₦
Enter a valid amount
?
Total taxable goods/services you bought for your business. The 7.5% VAT on these is reclaimable.
₦
Enter a valid amount
VAT-Free Items (2026)
Zero-rated (0% — input VAT reclaimable):
· Basic food (unprocessed) · Books & educational materials
· All exports · Electricity (grid distribution)
· Electric vehicles New 2026 · Medical & pharmaceutical products
Exempt (no VAT — no input recovery):
· Financial services · Baby products
· Agricultural machinery · Commercial aircraft
· Basic food (unprocessed) · Books & educational materials
· All exports · Electricity (grid distribution)
· Electric vehicles New 2026 · Medical & pharmaceutical products
Exempt (no VAT — no input recovery):
· Financial services · Baby products
· Agricultural machinery · Commercial aircraft
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 and uses the WHT credit against their annual tax bill.
NTA 2025 · WHT Regulations 2024Small 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. Deduct the WHT, 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 deducting WHT. Net to recipient = Gross minus WHT.
₦
Enter a valid amount
WHT Computation
WHT Rate Reference
| Payment | Corp | Indiv |
|---|---|---|
| Dividends | 10% | 10% |
| Interest | 10% | 10% |
| Royalties | 10% | 5% |
| Rent | 10% | 10% |
| Contracts | 5% | 5% |
| Commission | 10% | 5% |
| Consultancy | 10% | 5% |
| Mgmt fees | 10% | 10% |
| Director fees | 10% | 10% |
Capital Gains Tax (CGT) Restructured 2026
Tax on profit from disposing of assets. Companies now pay 30%; individuals pay at their PIT progressive rate. The old flat 10% rate is abolished.
NTA 2025 · CGT restructured from 1 January 20262026 restructure: Old flat 10% gone. Companies: 30%. Individuals: 0–25% (PIT rate). New low-value exemption: proceeds <₦150M AND gain ≤₦10M are fully exempt. Crypto/digital asset gains are now taxable.
Asset Disposal Details
?
How much you received. If gifted or below market value, use market value instead.
₦
Enter a valid amount
?
What you originally paid. If inherited, use market value at date of inheritance.
₦
Enter a valid amount
?
Legal fees, agent commissions, survey costs paid on disposal. Reduces your gain.
₦
Enter a valid amount
?
Money spent enhancing the asset after acquisition — renovation, extensions. Routine maintenance does NOT count.
₦
Enter a valid amount
?
Include this gain to determine which PIT band applies. CGT uses your marginal PIT rate.
₦
Enter a valid amount
Determines your PIT band and CGT rate
CGT Computation
Development Levy (4%) New 2026
A unified 4% levy replacing Education Tax (2.5%), NASENI (0.25%), NITDA (1%), and Police Trust Fund. Small companies are fully exempt.
NTA 2025, Section 59 · Effective 1 January 2026Simplified: One 4% Development Levy replaces 4–5 separate levies with separate filings. Computed on assessable profit. Small companies (turnover ≤₦100M) are fully exempt.
Dev Levy Calculator
?
Determines small company status. Turnover ≤₦100M = exempt from this levy.
₦
Enter a valid amount
?
Profit before capital allowances and tax losses. Same base as CIT assessable profit.
₦
Enter a valid amount
Before capital allowances — same base as CIT
What this replaces
Old system: Edu 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. Rates unchanged from Pension Reform Act 2014.
Pension Reform Act 2014 · NHF Act · NTA 2025 (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.?
Pension is calculated on Basic + Housing + Transport combined.
₦
Enter a valid amount
₦
Enter a valid amount
₦
Enter a valid amount
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 |
Stamp Duty
A fee on official documents — property leases, mortgages, share transfers, contracts, and electronic bank transfers above ₦10,000.
NTA 2025 · Finance Act 2020 (e-transfer ₦50)Stamp Duty Calculator
When do you pay?
Signing a rental/lease agreement, taking a mortgage, transferring shares, receiving a bank transfer ≥₦10,000, or executing a contract. Makes the document enforceable in court.?
For leases, enter the annual rent. For mortgages and share transfers, enter the total transaction value.
₦
Enter a valid amount
Stamp Duty
Combined Tax Burden Dashboard
Your total estimated tax and levy exposure across all categories — based on the figures entered in each calculator. Fill in the individual calculators first, then return here.
This dashboard reads the values from each individual calculator tab. Fill them in first for accurate totals.
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 |
|---|---|---|
| First ₦800,000 | 0% | ₦0 |
| 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 | Corp | Indiv |
|---|---|---|
| Dividends | 10% | 10% |
| Interest | 10% | 10% |
| Royalties | 10% | 5% |
| Rent | 10% | 10% |
| Contracts | 5% | 5% |
| Commission | 10% | 5% |
| Consultancy | 10% | 5% |
| Mgmt fees | 10% | 10% |
| Director fees | 10% | 10% |
CIT & Corporate Levies
| Tax | Rate | Base |
|---|---|---|
| CIT — Small Co. | 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 capital gain |
| CGT — Individuals | PIT rate | 0–25% by income band |
Pension, NHF & Stamp
| 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 | ≥ ₦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 |