Nigeria personal income tax calculator — NTA 2025
The full PIT calculator under the Nigeria Tax Act 2025, with every allowable deduction and a side-by-side comparison to the old PITA rules. Updates live as you type.
Your details
Your result
Enter your annual income to see your 2026 tax under NTA 2025.
Add deductions for a sharper estimate. Numbers update as you type — no submit button.
What this calculator works out
Personal Income Tax is what an individual owes on everything they earn in a year — salary, freelance fees, business profit, investment income. Under the Nigeria Tax Act 2025 it is charged in bands: the first ₦800,000 is taxed at 0%, and each slice above that is taxed at a progressively higher rate up to 25%.
Only the slice inside each band is taxed at that band's rate, which is why your effective rate is always lower than your top bracket. In the example below, income reaching the 18% band still produces an effective rate of about 11.98% once the tax-free slice and deductions are counted.
The big change under NTA 2025 is that the Consolidated Relief Allowance was abolished and replaced with targeted reliefs — chiefly rent relief at 20% of annual rent, capped at ₦500,000 — alongside pension, NHF and NHIS contributions. This calculator applies each of them and shows a side-by-side comparison with the old PITA rules so you can see what actually changed for you.
How to use it
Enter your gross annual income
Everything before tax and before deductions — salary, freelance invoices, business income, the lot. If you are paid monthly, multiply by twelve.
Add your annual rent
Rent relief is the main personal relief now that the CRA is gone. It is worth 20% of what you pay, capped at ₦500,000. You must actually pay rent to claim it — homeowners are not eligible.
Open deductions and add your contributions
Pension, National Housing Fund and health insurance all reduce taxable income, as do life assurance premiums and housing-loan interest. Pension is typically 8% of gross.
Read the result and the comparison
The result updates live. It shows tax owed, your effective rate, a band-by-band breakdown, and what the same income would have cost under the old PITA schedule.
A worked example
A freelance developer earns ₦6,000,000 in the year, pays ₦1,800,000 in rent, and contributes ₦480,000 to a pension.
| Gross annual income | ₦6,000,000 |
|---|---|
| Less rent relief20% of ₦1,800,000, capped at ₦500,000 | −₦360,000 |
| Less pension contributions8% of gross | −₦480,000 |
| Taxable income | ₦5,160,000 |
| Taxed at 0%₦800,000 × 0% | ₦0 |
| Taxed at 15%₦2,200,000 × 15% | ₦330,000 |
| Taxed at 18%₦2,160,000 × 18% | ₦388,800 |
| Total tax owed | ₦718,800 |
| Effective rate on gross income₦718,800 ÷ ₦6,000,000 | 11.98% |
| Same income under the old PITA rules | ₦896,000 |
The first ₦800,000 of taxable income costs nothing, and only the slice above each threshold attracts the higher rate — so despite reaching the 18% band, the effective rate lands near 11.98%. On this income the NTA 2025 rules work out ₦177,200 cheaper than PITA. That gap is not the same for everyone: the abolition of the CRA means the answer depends heavily on your rent and contributions, which is exactly why it is worth calculating rather than assuming.
Tax bands and reliefs
The 2026 bands under the Nigeria Tax Act 2025, effective 1 January 2026.
| Band or item | Rate or figure | Notes |
|---|---|---|
| ₦0 – ₦800,000 | 0% | First ₦800,000 @ 0% |
| ₦800,001 – ₦3,000,000 | 15% | Next ₦2,200,000 @ 15% |
| ₦3,000,001 – ₦12,000,000 | 18% | Next ₦9,000,000 @ 18% |
| ₦12,000,001 – ₦25,000,000 | 21% | Next ₦13,000,000 @ 21% |
| ₦25,000,001 – ₦50,000,000 | 23% | Next ₦25,000,000 @ 23% |
| Above ₦50,000,000 | 25% | Above ₦50,000,000 @ 25% |
| Rent relief | 20% | Of annual rent paid, capped at ₦500,000. Replaces the abolished CRA. |
| Pension contributions | 8% | Statutory rate. Deductible from taxable income. |
| National Housing Fund | 2.5% | Deductible from taxable income. |
| Health insurance (NHIS) | 5% | Deductible from taxable income. |
Band source: NTA 2025 (No. 7) Fourth Schedule (bands), §30 (reliefs); NTAA 2025 (No. 5) §§65, 100-105 (penalties). Verified against primary gazette. Last verified against the primary gazette on 2026-05-31 (rule set 2026-v4). TaxJeje reads figures from the gazette itself rather than from secondary summaries, several of which still quote superseded bill text.
Common questions
How much tax will I pay in Nigeria?
It depends on your income after reliefs. The first ₦800,000 of taxable income is free, then rates run 15%, 18%, 21%, 23% and 25% on each slice above. The developer in the example pays ₦718,800 on ₦6,000,000.
What are the tax brackets in Nigeria for 2026?
Six bands: 0% on the first ₦800,000, then 15%, 18%, 21%, 23% and 25%. The top rate applies only to taxable income above ₦50,000,000. Full thresholds are in the table above.
Is the first ₦800,000 really tax free?
Yes. Under NTA 2025 the first ₦800,000 of taxable income is charged at 0%. Note it applies to income after allowable deductions, not to gross — so reliefs can bring you under the line even if your gross is above it.
What replaced the Consolidated Relief Allowance?
The CRA was abolished. In its place are targeted reliefs — principally rent relief at 20% of rent paid, capped at ₦500,000 — plus the existing deductions for pension, NHF, NHIS, life assurance and housing-loan interest.
Am I better or worse off under the new tax law?
It varies. Losing the CRA hurts, gaining rent relief and a larger tax-free band helps, and which dominates depends on your income, your rent and your contributions. The calculator shows both figures side by side rather than generalising.
Do freelancers pay the same rates as salary earners?
The same bands apply. The difference is mechanical: an employer withholds PAYE monthly for salary earners, whereas a freelancer files and pays directly. A freelancer can also deduct legitimate business expenses before arriving at taxable income.
Does this include state taxes?
Personal Income Tax in Nigeria is administered by your State Internal Revenue Service, but the rates are set federally by NTA 2025 — so the figure here is the amount due regardless of state. Where you file differs; what you owe does not.
Is this calculator free?
Yes, and there is no sign-up. It runs in your browser — nothing you type is sent anywhere. A TaxJeje account adds income tracking, deduction prompts and filing preparation, but the calculator needs no account.