Nigeria Income Tax Calculator 2026 (Nigeria Tax Act 2025)
Work out your personal income tax in Nigeria for 2026 with the new bands from 0% to 25%, rent relief, pension, NHF, NHIS and life insurance deductions.
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Bands of the Fourth Schedule of the Nigeria Tax Act 2025, for 2026 onward. Capital gains of individuals are added to income and taxed at the same rates; compensation for loss of employment is exempt up to ₦50,000,000.
What it does
Nigeria's personal income tax is charged on chargeable income: total income minus the eligible deductions of section 30 of the Nigeria Tax Act 2025. The first ₦800,000 is taxed at 0% and the rest in bands of 15%, 18%, 21%, 23% and 25%. Employees pay it through PAYE; others file a return with the tax office of their state of residence.
How to use it
- Type your gross income for the year.
- Add the pension, NHF and NHIS contributions, mortgage interest, life insurance and rent paid.
- Read the tax, the chargeable income and the marginal and effective rates.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much tax do I pay on ₦12 million a year?
With ₦576,000 of pension, ₦200,000 of life insurance and ₦3,000,000 of rent (relief capped at ₦500,000), deductions are ₦1,276,000 and chargeable income ₦10,724,000: ₦330,000 on the 15% band plus ₦1,390,320 at 18%, ₦1,720,320 in total (₦143,360 a month).
What are the income tax bands 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 everything above ₦50,000,000 at 25%.
Which deductions are allowed?
Contributions to the pension scheme, the National Housing Fund and the National Health Insurance Scheme, interest on a loan for a home you live in, life insurance or annuity premiums, and rent relief of 20% of the annual rent up to ₦500,000.
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