Nigeria Tax Calculator (2026)
Income tax rates and take-home pay for Nigeria
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 on my salary in Nigeria?
Nigeria uses a progressive tax system with 6 income tax brackets ranging from 7% on the 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. For example, earning 1,000,000 NGN would put you in multiple brackets, but the CRA significantly reduces your final tax liability.
What deductions can I claim from my gross income in Nigeria?
Employee pension contributions of 8% are deductible from your taxable income before income tax is calculated. The National Housing Fund (NHF) contribution of 2.5% is not deductible for income tax purposes, though it is still withheld from your salary. Additionally, the Consolidated Relief Allowance (a 21% reduction, minimum 200,000 NGN) is applied after calculating your tax, providing significant relief on your final tax bill.
Do I need to pay any other taxes or contributions besides income tax?
Yes, as an employee you will have two social contributions deducted from your salary: an 8% mandatory pension contribution and a 2.5% National Housing Fund contribution. Both are withheld by your employer, though only the pension contribution reduces your taxable income. These contributions are in addition to your income tax and are essential parts of Nigeria's employment tax structure.
What is the Consolidated Relief Allowance and how does it work?
The Consolidated Relief Allowance (CRA) is a major tax relief in Nigeria that effectively reduces your income tax liability by 21% of your gross income, with a guaranteed minimum of 200,000 NGN. This means even low earners receive at least 200,000 NGN in tax relief, making it a significant benefit for all income levels. The CRA is applied after your income tax is calculated based on the progressive brackets, providing meaningful tax reduction across the board.
Is there a minimum income threshold for paying taxes in Nigeria?
Yes, employees earning the national minimum wage of 70,000 NGN or less are exempt from personal income tax (PIT) and Pay-As-You-Earn (PAYE) tax. However, if you earn above this threshold, you will be subject to income tax calculated using the progressive bracket system. This exemption applies only to minimum wage earners; anyone earning more must pay income tax based on their income level.
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