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 has a progressive income tax system with 6 tax brackets ranging from 7% on income up to NGN 300,000 to 24% on income above NGN 3,200,000. Your actual tax is calculated by applying the appropriate rate to each bracket of your income, then reducing it by the Consolidated Relief Allowance, which is the higher of NGN 200,000 or 21% of your gross income.
What is the Consolidated Relief Allowance and how does it work?
The Consolidated Relief Allowance (CRA) is a deduction from your taxable income designed to provide tax relief. It's calculated as 21% of your gross income, but with a minimum floor of NGN 200,000, meaning you'll always get at least NGN 200,000 deducted from your income before tax is applied.
Do I have to contribute to a pension in Nigeria?
Yes, if you're an employee in Nigeria, you're required to contribute 8% of your gross income to a pension scheme, and this contribution is deductible from your taxable income. Additionally, your employer must contribute at least 10% to your pension, though this doesn't come from your salary.
What about the National Housing Fund contribution?
The National Housing Fund (NHF) contribution is 2.5% of your gross income for private sector employees and is generally treated as voluntary. Unlike the pension contribution, the NHF is not deductible from your taxable income, so it comes out of your take-home pay after taxes are calculated.
Is there a minimum wage tax exemption in Nigeria?
Yes, employees earning the minimum wage of NGN 70,000 per month (effective May 2024) are exempt from personal income tax and PAYE. However, if you earn above this threshold, you'll be subject to the standard tax brackets and deductions outlined in the tax system.
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