How Nigerian personal income tax is charged
Personal income tax in Nigeria is a progressive charge on income after eligible deductions. Most people file with the Internal Revenue Service of the state where they live. The Nigeria Revenue Service (NRS), formerly the Federal Inland Revenue Service, administers federal taxes and special cases such as the armed forces, police, foreign service officers, and some non-residents. From 30 April 2026, federal registration, filing, payments, refunds, and tax clearance sit on Rev360, the NRS taxpayer portal that replaced TaxPro Max.
The Nigeria Tax Act 2025 took effect on 1 January 2026 and updated personal income tax bands, including a 0% first slice of chargeable income. The Joint Revenue Board 2026 Personal Income Tax Guidelines explain how PAYE, eligible deductions, and annual returns work. This calculator is a planning estimate. Confirm the current bands with your state tax office or a licensed practitioner before you file.
What the bands and rates mean for you
A progressive system taxes each slice of income at its own rate. You do not pay the top rate on every naira you earn. Your effective rate is total tax divided by taxable income. Your marginal rate is the rate on the next naira. Seeing both helps you plan cash and hiring without guessing.
The Nigeria Tax Act 2025 taxes chargeable income as follows for 2026: the first ₦800,000 at 0%, the next ₦2,200,000 at 15%, the next ₦9,000,000 at 18%, the next ₦13,000,000 at 21%, the next ₦25,000,000 at 23%, and income above ₦50,000,000 at 25%. Eligible deductions such as pension, National Housing Fund, health insurance, life assurance, owner-occupied housing loan interest, and rent relief (20% of annual rent paid, capped at ₦500,000) come off before those bands. Add those amounts in the calculator. If your state or the Board publishes a later table, edit the bands so your estimate stays honest.
How to use this Nigeria income tax calculator
Enter gross income, keep or change the standard relief, then add extra deductions if they apply to you. The tool shows tax by band, taxable income, and net income after tax. Export the Excel summary for your records or to share with an adviser.
This is not a filing product and it does not replace Rev360 or your state portal. Use it to check cash needs, compare scenarios, and walk into a professional conversation with numbers already in order.