Nigeria Income Tax Calculator
Estimate your 2026 personal income tax under the new Nigeria Tax Act, effective 1 January 2026, including the raised ₦800,000 tax-free threshold and optional rent relief.
What this calculator does
Estimates your Nigerian personal income tax under the new Nigeria Tax Act (effective 1 January 2026), applying the raised ₦800,000 tax-free threshold and the new rent relief to your taxable income.
Who this is for
Nigerian employees estimating their PAYE under the new tax law, anyone comparing a job offer, or people wanting to understand how the 2026 reforms changed their tax bill versus the old system.
How this calculator works
Uses the Nigeria Tax Act 2025 personal income tax bands, effective 1 January 2026: 0% up to ₦800,000, then five progressive bands rising to 25% above ₦50 million. The old Consolidated Relief Allowance was scrapped and replaced with a rent relief of 20% of annual rent paid, capped at ₦500,000, which is deducted from gross income before the bands are applied.
Worked example
₦3,600,000 gross income, ₦1,000,000 annual rent paid: rent relief = 20% × 1,000,000 = ₦200,000 (below the ₦500,000 cap, so the full amount applies). Taxable income = 3,600,000 − 200,000 = ₦3,400,000, which falls in the ₦3,000,000–₦12,000,000 band. Tax = ₦330,000 base + 18% × (3,400,000 − 3,000,000) = 330,000 + 72,000 = ₦402,000 total tax, an effective rate of about 11.2% on gross income.
Where your income goes
Run the calculator above to see the tax vs. take-home split.
2026 tax bracket breakdown
Run the calculator above to see your income split across brackets.
Common mistakes
- Using the old ₦300,000 threshold or CRA. Both were replaced effective 1 January 2026 — the tax-free threshold nearly tripled to ₦800,000, and the CRA is gone entirely, replaced by rent relief.
- Forgetting rent relief is capped. Rent relief is 20% of what you actually pay, but never more than ₦500,000 a year regardless of how much rent you pay.
- Applying the top rate to your whole income. Even at ₦100 million income, only the portion above ₦50 million is taxed at 25% — the rest is taxed progressively through the lower bands.
- Forgetting rent relief requires you to actually pay rent. Homeowners without a rental payment don't qualify for this specific relief, unlike the old CRA which applied more broadly regardless of housing situation.
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Frequently Asked Questions
Does everyone qualify for rent relief?
Only if you actually pay rent — it's calculated as 20% of your annual rent payment, capped at ₦500,000. Homeowners without a rental payment don't have this specific relief available, unlike the old Consolidated Relief Allowance it replaced, which applied more broadly.
What changed in the 2026 Nigeria Tax Act?
The tax-free threshold rose from ₦300,000 to ₦800,000, the old Consolidated Relief Allowance was replaced by a simpler rent relief (20% of annual rent, capped at ₦500,000), and the top marginal rate rose slightly to 25% on income above ₦50 million.
Do minimum wage earners pay tax?
No. Anyone earning at or below the national minimum wage (₦70,000/month, ₦840,000/year) falls within or very close to the ₦800,000 tax-free threshold and generally pays no PAYE.
Is this the same for business income?
This calculator models personal employment income (PAYE). Business names are taxed on profit after deducting valid expenses, not on gross income, so the same bands apply to a different base.