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 if I earn NGN 500,000 per month?
On a monthly income of NGN 500,000, you would fall into Nigeria's progressive tax brackets: 7% on the first NGN 300,000 and 11% on the remaining NGN 200,000. After accounting for the Consolidated Relief Allowance (21% of gross income, with a minimum of NGN 200,000) and mandatory pension contributions (8%), your effective tax rate would be significantly lower. Use our calculator to see your exact take-home pay based on your annual income.
What is the Consolidated Relief Allowance in Nigeria?
The Consolidated Relief Allowance (CRA) is a tax deduction that replaces several previous allowances and is calculated as 21% of your gross income, with a minimum of NGN 200,000. This allowance is applied after calculating your income tax and significantly reduces your overall tax liability. It's one of the key ways Nigeria's tax system provides relief to working individuals.
Do I have to contribute to a pension plan as an employee in Nigeria?
Yes, employees in Nigeria must contribute 8% of their gross income to a mandatory pension scheme, which is deductible from your taxable income. Additionally, there is a National Housing Fund contribution of 2.5% that is treated as a voluntary employee contribution. Both contributions reduce your take-home pay but provide important social security and housing benefits.
What are Nigeria's income tax brackets for 2025?
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. The brackets are: 7% (NGN 0-300,000), 11% (NGN 300,000-600,000), 15% (NGN 600,000-1,100,000), 19% (NGN 1,100,000-1,600,000), 21% (NGN 1,600,000-3,200,000), and 24% (above NGN 3,200,000). Your actual tax depends on which brackets your income falls into.
Is there a minimum income threshold for paying taxes in Nigeria?
Yes, Nigeria has a minimum wage exemption; employees earning the statutory minimum wage (NGN 70,000 per month as of May 2024) are exempt from Personal Income Tax and PAYE. However, if you earn above the minimum wage, you are subject to income tax. This calculator assumes income above the minimum wage for comparative purposes.
Are there state or regional differences in Nigeria's income tax rates?
Nigeria's income tax system is primarily federal, and the rates provided apply nationally. However, some states may have additional local taxes or levies, so your total tax burden could vary depending on which state you work or reside in. It's best to check with your employer or a local tax advisor for state-specific requirements in your location.
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