Nigeria Tax Calculator (2026)
Income tax rates and take-home pay for Nigeria
Using Lagos for state/regional taxes. Region selection coming soon.
Nigeria Income Tax Brackets (2024-25)
| Bracket | Income Range | Rate |
|---|---|---|
| First 300,000 | NGN 0 - NGN 300,000 | 7.0% |
| Next 300,000 | NGN 300,000 - NGN 600,000 | 11.0% |
| Next 500,000 | NGN 600,000 - NGN 1,100,000 | 15.0% |
| Next 500,000 | NGN 1,100,000 - NGN 1,600,000 | 19.0% |
| Next 1,600,000 | NGN 1,600,000 - NGN 3,200,000 | 21.0% |
| Above 3,200,000 | NGN 3,200,000+ | 24.0% |
Pension Fund Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Statutory Pension Contribution | NGN 0+ | 8.0% |
Key Facts
Tax Year
2024-25
Currency
NGN
Top Rate
24.0%
Brackets
6 brackets
Allowance
None
Social Contributions
1 item
Assumptions
- · Personal Income Tax (PIT) in Nigeria is governed by the federal Personal Income Tax Act (PITA) but collected by state governments. Rates are uniform nationwide.
- · The Consolidated Relief Allowance (CRA) is modeled as an income-based deduction: Higher of NGN 200,000 or 1% of gross income, plus 20% of gross income.
- · Employees earning the national minimum wage (NGN 840,000 per annum since May 2024) or less are exempt from income tax.
- · A minimum tax of 1% of total income applies if the calculated tax is lower than 1% of total income.
- · National Housing Fund (NHF) contributions are excluded as they are voluntary for private sector employees.
- · Pension contributions (8%) are deductible for tax purposes.
Frequently asked questions
How much income tax will I pay in Nigeria?
Nigeria uses a progressive tax system with six income tax brackets ranging from 7% on the first NGN 300,000 to 24% on income above NGN 3,200,000. Your actual tax depends on your gross income and deductions like the Consolidated Relief Allowance (CRA), which is the higher of NGN 200,000 or 1% of gross income, plus 20% of gross income. Additionally, if you earn the national minimum wage of NGN 840,000 per annum or less, you are exempt from income tax entirely.
Do I have to pay pension contributions in Nigeria?
Yes, employees in Nigeria must contribute 8% of their gross income to a Pension Fund, and this contribution is tax-deductible, meaning it reduces your taxable income. This is a statutory requirement for formal employment in Nigeria and helps build your retirement savings.
Is there a minimum tax I need to pay even if my tax calculation is very low?
Yes, Nigeria applies a minimum tax of 1% of total income if your calculated tax liability is lower than 1% of your total income. This ensures that even those with very low tax liability contribute at least this minimum amount to the government.
Why does the calculator use Lagos as the default region?
Personal Income Tax in Nigeria is collected by state governments, though rates are uniform nationwide. We use Lagos as the default subnational region since it is Nigeria's largest financial hub and a common location for expats and remote workers, but the income tax rates shown apply across all Nigerian states.
What is the Consolidated Relief Allowance (CRA) and how does it work?
The Consolidated Relief Allowance is an income-based deduction that reduces your taxable income and is calculated as the higher of NGN 200,000 or 1% of gross income, plus an additional 20% of gross income. This relief is designed to reduce the tax burden on employees and is applied before calculating your final income tax liability.
What happens if my calculated tax is lower than 1% of my income?
If your calculated tax is lower than 1% of your total income, you will pay a minimum tax of 1% instead. This minimum tax rule ensures a baseline contribution even for those with very low tax liabilities due to deductions or lower income levels.
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