Nigeria Income Tax Calculator & Rates 2026 — FIRS Guide
Updated April 2026 • Nigeria Finance Guide • 8 min read
Overview
Understanding Nigeria's income tax is essential for every working Nigerian. PITA establishes graduated rates from 7% to 24%.
Key Details
The tax brackets: First NGN 300K at 7%, 300K-600K at 11%, 600K-1.1M at 15%, 1.1M-1.6M at 19%, 1.6M-3.2M at 21%, above 3.2M at 24%. The Consolidated Relief Allowance (CRA) of 20% of gross plus NGN 200K reduces taxable income significantly.
Important Considerations
PAYE is deducted monthly by employers. Self-employed must file annual returns by March 31. Deductions include pension (8%), NHF (2.5%), and life insurance. Use the FIRS TaxPro app for easy filing.
Additional Information
VAT in Nigeria is 7.5% on most goods and services. Basic food, medical, and educational items are exempt. Late filing penalties are NGN 50,000 for individuals.
Frequently Asked Questions
What is the income tax rate in Nigeria?
Rates range from 7% (first NGN 300K) to 24% (above NGN 3.2M) with a Consolidated Relief Allowance reducing taxable income.
When is the tax deadline in Nigeria?
Individual returns must be filed by March 31. Late filing incurs NGN 50,000 penalty.
How is PAYE calculated?
Subtract CRA and deductions from gross income then apply graduated rates from 7% to 24%.
What deductions are available?
CRA (20% of gross + NGN 200K), pension (8%), NHF (2.5%), life insurance, and voluntary pension.
What is Nigeria VAT rate?
7.5% on most goods and services. Basic food, medical, and education items are exempt.