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 rate depends on your total income, but you'll also benefit from the Consolidated Relief Allowance, which reduces your taxable income by 21% (with a minimum of 200,000 NGN), making your effective tax rate lower than the bracket rate.
Do I have to contribute to a pension in Nigeria?
Yes, if you're employed in Nigeria, you must contribute 8% of your gross income to a mandatory employee pension scheme, and this contribution is deductible from your taxable income. Your employer is also required to contribute at least 10%, though that doesn't affect your take-home pay calculation.
What is the Consolidated Relief Allowance and how does it work?
The Consolidated Relief Allowance (CRA) is a tax relief that reduces your taxable income by the higher of either 200,000 NGN or 21% of your gross income. This allowance is automatically applied to your tax calculation and significantly lowers the amount of income subject to Nigeria's progressive tax brackets.
Are there any other deductions or contributions taken from my salary?
Beyond the 8% mandatory pension contribution, you'll also pay a 2.5% National Housing Fund (NHF) contribution, though this is treated as voluntary for private sector employees and is not deductible from taxable income. Both contributions reduce your take-home pay but serve as social benefits.
Is there a minimum income threshold for paying income tax in Nigeria?
Yes, minimum wage earners (earning 70,000 NGN or less as of May 2024) are exempt from income tax and PAYE. However, if you earn above the minimum wage, you'll be subject to income tax regardless of your income level, starting from the lowest bracket of 7%.
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