Tax calculators, PDF workspace, currency tools, education calculators and more — all built for Nigeria. Tax tools updated for the Nigeria Tax Act 2025.
Nigeria operates one of Africa's largest and most complex tax systems, administered by the Federal Inland Revenue Service (FIRS) — soon to be renamed the Nigeria Revenue Service (NRS) under the landmark Nigeria Tax Act 2025. The country's personal income tax follows a progressive structure with rates ranging from 0% to 25%, applied across six taxable income bands denominated in the Nigerian Naira (NGN). Employees in Nigeria are subject to several mandatory deductions beyond PAYE income tax, including an 8% pension contribution under the Pension Reform Act, a 2.5% National Housing Fund (NHF) levy, and a 5% National Health Insurance Scheme (NHIS) contribution. Employers are equally required to make matching or higher contributions to these statutory funds, making payroll compliance a critical concern for businesses operating in Nigeria. Value Added Tax (VAT) stands at 7.5% on most goods and services, with key exemptions for basic food items, medical supplies, and educational materials. The 2026 tax year introduces significant reforms including a new zero-rate PAYE threshold of 800,000 Naira annually, the abolition of the Consolidated Relief Allowance, and the introduction of a 4% Development Levy replacing multiple older levies. AfroTools provides free, regularly updated PAYE tax calculators, VAT calculators, pension contribution tools, and salary breakdown calculators specifically built for Nigeria. All calculations reflect the current NTA 2026 provisions and are designed to help Nigerian workers, HR professionals, and business owners navigate the new tax landscape with confidence.
NTA 2026 is now in effect. The Nigeria Tax Act (signed 26 June 2025) replaced PITA, CITA, CGTA, and VAT Act from 1 January 2026. All tax calculators below reflect the new regime. Where relevant, PITA 2025 is shown for comparison.
Tax calculators, document tools, and more — built specifically for Nigeria or available across all 54 African countries.
Official tax tables from the Nigeria Tax Act 2025. Rates effective 1 January 2026.
| Annual Taxable Income | Monthly Equivalent | Rate |
|---|---|---|
| ₦0 – ₦800,000 | Up to ₦66,667/mo | 0% |
| ₦800,001 – ₦3,000,000 | ₦66,668 – ₦250,000/mo | 15% |
| ₦3,000,001 – ₦12,000,000 | ₦250,001 – ₦1,000,000/mo | 18% |
| ₦12,000,001 – ₦25,000,000 | ₦1,000,001 – ₦2,083,333/mo | 21% |
| ₦25,000,001 – ₦50,000,000 | ₦2,083,334 – ₦4,166,667/mo | 23% |
| Above ₦50,000,000 | Above ₦4,166,667/mo | 25% |
| Company Type | Criteria | Rate |
|---|---|---|
| Small Company — CIT | Turnover ≤ ₦100M AND Fixed Assets ≤ ₦250M | 0% |
| Small Company — Dev Levy | Same as above | Exempt |
| Small Company — CGT | Same as above | Exempt |
| Standard Company — CIT | All other companies | 30% |
| Development Levy | Standard companies (on assessable profit) | 4% |
| Multinational Minimum ETR | Group turnover ≥ €750M or ≥ ₦50B | 15% min |
| Category | Examples | Rate |
|---|---|---|
| Standard-rated | Most goods & services, professional fees | 7.5% |
| Zero-rated (input VAT reclaimable) | Basic food, medical, education, electricity, pharma, agri inputs | 0% |
| Exempt (input VAT not reclaimable) | Residential rent, baby products, sanitary products, exports, crude oil | Exempt |
| Small business threshold | Annual turnover ≤ ₦100M — no VAT obligation | Not applicable |
| Taxpayer Type | Asset / Condition | Rate |
|---|---|---|
| Individual | Any chargeable asset | 10% |
| Company (NTA 2026) | Any chargeable asset | 30% |
| Small Company | Turnover ≤ ₦100M, fixed assets ≤ ₦250M | Exempt |
| Share disposal exemption | Sales ≤ ₦150M / 12 months AND gain ≤ ₦10M | Exempt |
| Reinvestment relief | Gains reinvested in Nigerian company within 12 months | Deferred |
| Loss of employment | Compensation up to ₦50M | Exempt |
Major differences from the old PITA/CITA regime.