Nigeria Tax Calculator (2026)
Income tax rates and take-home pay for Nigeria
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Nigeria Income Tax Brackets (2025)
| 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% |
Personal allowance: NGN 0
Pension Contribution (Employee)
| Bracket | Income Range | Rate |
|---|---|---|
| Mandatory employee pension contribution | NGN 0+ | 8.0% |
National Housing Fund Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| NHF contribution (private sector voluntary) | NGN 0+ | 2.5% |
Key Facts
Tax Year
2025
Currency
NGN
Top Rate
24.0%
Brackets
6 brackets
Allowance
NGN 0
Social Contributions
2 items
Assumptions
- · Consolidated Relief Allowance (CRA) modeled as 21% of gross income (higher of NGN 200,000 or 1% of gross plus 20% of gross).
- · Minimum tax of 1% applies when income tax before CRA is below 1% of total income; not modeled as separate surcharge due to complexity of interaction with CRA.
- · Pension contributions (employee 8%) are deductible from taxable income.
- · NHF contribution (2.5%) is treated as voluntary for private sector employees; included as employee social contribution but marked as non-deductible per source ambiguity.
- · Minimum wage earners (NGN 70,000 effective 1 May 2024) are exempt from PIT and PAYE; model assumes income above minimum wage for comparative purposes.
- · Capital gains tax and other non-employment taxes excluded.
- · Employer pension contributions (10% minimum) and life insurance are employer-only; excluded.
- · Model represents a typical private-sector employee earning above minimum wage.
Frequently asked questions
How much income tax will I pay in Nigeria?
Nigeria uses a progressive tax system with 6 income tax brackets ranging from 7% on your first 300,000 NGN up to 24% on income above 3,200,000 NGN. Your actual tax is calculated by applying the appropriate rate to each bracket of your income, then reducing it by the Consolidated Relief Allowance (CRA), which is 21% of your gross income with a minimum of 200,000 NGN.
What deductions reduce my taxable income in Nigeria?
You can deduct your employee pension contribution (8% of gross income) from your taxable income before calculating income tax. The Consolidated Relief Allowance (CRA) also provides significant relief, calculated as 21% of your gross income or a minimum of 200,000 NGN, whichever is higher. The National Housing Fund contribution (2.5%) is treated as a non-deductible employee social contribution.
Do I need to contribute to a pension in Nigeria?
Yes, as an employee in Nigeria, you must contribute 8% of your gross income to a mandatory pension scheme. This contribution is deductible from your taxable income, reducing your overall tax burden. Additionally, your employer is required to contribute at least 10% to your pension account.
What is the Consolidated Relief Allowance and how does it work?
The Consolidated Relief Allowance (CRA) is Nigeria's main tax relief mechanism, calculated as the higher of 200,000 NGN or 21% of your gross income. It reduces your taxable income after accounting for deductions like pension contributions, providing substantial tax relief across all income levels. This allowance replaces several older individual reliefs and simplifies the tax calculation process.
Is there a minimum wage tax exemption in Nigeria?
Yes, employees earning the minimum wage of 70,000 NGN (effective May 2024) are exempt from personal income tax and PAYE. However, if you earn above the minimum wage, you are subject to the progressive tax system regardless of how close your income is to the minimum threshold.
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