How is Nigerian income tax calculated?

Through 2025 Nigeria used progressive PITA bands on taxable income: 7% on the first ₦300,000, then 11%, 15%, 19%, 21% and 24%. From 2026 the Nigeria Tax Act 2025 replaces these with a new regime: the first ₦800,000 is tax-free, then 15%, 18%, 21%, 23% and a 25% top rate above ₦50,000,000. Enter your taxable income for an accurate figure.

What is the Consolidated Relief Allowance (CRA)?

For 2023–2025 the CRA is a statutory relief deducted before the tax bands apply, equal to the higher of ₦200,000 or 1% of gross income, PLUS 20% of gross income. The Nigeria Tax Act 2025 abolishes the CRA from 2026, replacing it with the ₦800,000 tax-free band plus a rent relief of 20% of annual rent (capped at ₦500,000).

Does this include pension contributions?

Yes. Under the Pension Reform Act, employees contribute 8% of pensionable emoluments (the employer adds 10%). This calculator applies 8% to the income you enter and subtracts it in your take-home figure. Pension is also relief-deductible from taxable income in practice.

What is the difference between effective and marginal tax rate?

Your effective rate is total tax divided by income — your true average. Your marginal rate is the rate on your next naira, set by the highest band you reach. On ₦2,000,000 taxable income the marginal rate is 21% but the effective rate is only about 15.4% because the lower bands use lower rates.

Does Nigeria have state income tax?

PAYE is administered by each State Internal Revenue Service, but the PITA rates and bands are uniform nationwide — states do not set their own schedules. So there is no separate state rate to add and this calculator has no region selector.

Can I use this for previous years?

Yes. Use the year selector to view 2023, 2024, 2025 or 2026 — 2026 is the latest and the only year using the Nigeria Tax Act 2025 reform (₦800,000 tax-free band and new 15%–25% rates). The 2023–2025 years share the old PITA bands, so tax on the same taxable income is the same across those three years but lower for most earners in 2026.

What is not included in this estimate?

This tool models the PITA bands and an 8% employee pension on taxable income. It does not auto-compute the CRA, the National Housing Fund (2.5%), national health insurance, life-assurance relief, the minimum-tax rule, dependants, or non-salary income. Consult FIRS, your State Internal Revenue Service, or a tax professional for exact figures.

Nigeria Income Tax Calculator

Enter your taxable income to estimate your PITA income tax, 8% employee pension and take-home pay, with the progressive bands for multiple years.

Updated June 2026

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Tax Calculator

Nigeria — 2026 Tax Year

2026 Tax Year

Tax Year

Select the tax year to view applicable rules and rates

This is an estimate. Consult a tax professional for accurate calculations.

Annual Gross Income (₦ NGN)

Filing Status

Enter your income to calculate

Fill in your gross income and filing status, then calculate to see your tax breakdown.

How to use Nigeria Income Tax Calculator

This Nigeria income tax calculator estimates your personal income tax and 8% employee pension based on your annual taxable income and the year you select (2023, 2024, 2025 or 2026 — 2026 is the latest). For 2023–2025 Nigeria taxes individuals on the PITA progressive bands — 7%, 11%, 15%, 19%, 21% and 24%. From 2026 the Nigeria Tax Act 2025 reform applies a new regime: the first ₦800,000 is tax-free, then 15%, 18%, 21%, 23% and a 25% top rate above ₦50,000,000. The calculator shows your effective rate, marginal rate and a band-by-band breakdown plus estimated take-home pay. Important: enter your taxable income (gross after the relevant reliefs) for an accurate figure.

Select your tax year (2023, 2024, 2025, or 2026) from the dropdown — 2026 uses the Nigeria Tax Act 2025 reform bands.
Work out your taxable income: gross pay minus the relevant reliefs (CRA for 2023–2025; the ₦800,000 band and rent relief for 2026).
Enter that taxable income in the income field (not your raw gross salary).
Keep the filing status as Individual — Nigeria taxes individuals.
Click Calculate to see your PIT, 8% pension, effective rate, marginal rate and take-home.

Your data never leaves your device — 100% private processing.

How Nigerian PITA tax bands work

Nigeria uses a progressive system applied to taxable income, not gross salary. Each band is taxed only on the income within its range. There is no 0% band — instead the Consolidated Relief Allowance removes a large slice of income before the bands start, so the first naira of taxable income is taxed at 7%. For example, ₦2,000,000 of taxable income is taxed 7% on the first ₦300,000, 11% on the next ₦300,000, 15% on the next ₦500,000, 19% on the next ₦500,000 and 21% on the final ₦400,000 — ₦308,000 in total, an effective rate of about 15.4%.

PITA progressive bands (2023–2025, on taxable income)
Band of taxable income	Rate	Cumulative tax at ceiling
First ₦300,000	7%	₦21,000
Next ₦300,000	11%	₦54,000
Next ₦500,000	15%	₦129,000
Next ₦500,000	19%	₦224,000
Next ₦1,600,000	21%	₦560,000
Above ₦3,200,000	24%	—

The Consolidated Relief Allowance (CRA)

Before the bands apply, PITA grants the Consolidated Relief Allowance: the higher of ₦200,000 or 1% of gross income, PLUS 20% of gross income. On a ₦5,000,000 gross salary that is ₦200,000 + ₦1,000,000 = ₦1,200,000 of relief, before pension and other deductions. Because the CRA depends on your gross income, this calculator does not compute it automatically — instead you enter your taxable income (gross after CRA and reliefs) and it applies the bands to that figure.

Pension and other statutory reliefs

Under the Pension Reform Act, employees contribute 8% of pensionable emoluments (basic, housing and transport) while the employer adds 10%. This 8% is both relief-deductible from taxable income and subtracted from your take-home pay, which the calculator models. Other reliefs that reduce taxable income — but are not modelled here — include the National Housing Fund (2.5%), national health insurance and life-assurance premiums.

Effective versus marginal tax rate

Your effective tax rate is your total tax divided by total income — your true average. Your marginal rate is the rate on your next naira, set by the highest band you reach. On ₦2,000,000 of taxable income your marginal rate is 21% but your effective rate is only about 15.4%, because the lower bands are taxed at 7% to 19%. Knowing the difference helps with decisions about overtime, bonuses or a salary increase.

Worked examples

Individual, ₦600,000 taxable, 2025

Inputs: ₦600,000 taxable income

Result: ~₦54,000 income tax · ₦48,000 pension · 9% effective · 11% marginal

Individual, ₦2,000,000 taxable, 2025

Inputs: ₦2,000,000 taxable income

Result: ~₦308,000 income tax · ₦160,000 pension · 15.4% effective · 21% marginal

Individual, ₦5,000,000 taxable, 2025

Inputs: ₦5,000,000 taxable income

Result: ~₦992,000 income tax · ₦400,000 pension · 19.8% effective · 24% marginal

Glossary

PITA: The Personal Income Tax Act, the law that sets Nigeria’s personal income tax bands and reliefs.
PAYE: Pay-As-You-Earn — the system by which employers withhold income tax from salaries each month.
Consolidated Relief Allowance (CRA): A statutory relief of the higher of ₦200,000 or 1% of gross, plus 20% of gross income, deducted before the tax bands.
Taxable income: Gross income after the CRA and statutory reliefs — the figure the PITA bands are applied to.
Pension contribution: A mandatory 8% employee contribution (employer adds 10%) under the Pension Reform Act 2014.
Effective tax rate: Total tax owed divided by total income — your true average tax rate.
Marginal tax rate: The tax rate applied to your next naira of income, set by the highest band you reach.
FIRS: The Federal Inland Revenue Service, Nigeria’s federal tax authority.

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