Nigeria Tax Calculator 2026
Calculate your taxes under the new Nigeria Tax Reform Acts 2025. Personal income tax with the new ₦800,000 exemption, company income tax (CIT) with reduced rates, development levy, and VAT — all in one place.
Based on the Nigeria Tax Act 2025, signed June 26, 2025, effective January 1, 2026. For informational purposes only — consult a tax professional for official advice.
Personal Income Tax Calculator
Calculate your tax under the Nigeria Tax Act 2025. First ₦800,000 is tax-free.
CRA has been eliminated under the Nigeria Tax Act 2025. The following individual reliefs now apply:
Tax Breakdown
Company Income Tax Calculator
Determine your CIT rate and development levy based on company size.
Tax Breakdown
VAT Calculator (7.5%)
Calculate VAT on goods and services at the standard 7.5% rate.
VAT Breakdown
What Changed in the 2025 Tax Reform?
Four landmark bills signed into law on June 26, 2025, transforming Nigeria's tax landscape effective January 1, 2026.
₦800K Tax-Free Threshold
The first ₦800,000 of annual income is now completely tax-free for individuals, freelancers, and self-employed workers. This is a brand-new exemption under the Nigeria Tax Act 2025.
Small Business Exemption
Companies with turnover ≤ ₦100 million and assets ≤ ₦250 million are exempt from CIT, Capital Gains Tax, and the Development Levy. The threshold doubled from the previous ₦25 million.
CIT Rate Reduced to 25%
Large companies now pay 25% CIT (down from 30%). Medium companies pay 20%. This makes Nigeria more competitive for business investment.
4% Development Levy
A new 4% Development Levy on assessable profits replaces the Tertiary Education Tax, NASENI Levy, IT Levy, and Police Trust Fund Levy. Small businesses are exempt.
Digital Services in Tax Net
Foreign digital service providers earning ₦25 million+ from Nigerian users must now register for CIT and VAT. E-invoicing is mandatory for VAT compliance.
FIRS Becomes NRS
The Federal Inland Revenue Service transforms into the Nigeria Revenue Service (NRS) — a more autonomous, digitally enabled body. Over 60 taxes consolidated into fewer than 10 statutes.
Track Your Taxes Automatically with Billing+
Create VAT-compliant invoices, track tax-deductible expenses, and generate reports ready for FIRS filing — all from one app.
Get Started FreeHow to Pay Tax in Nigeria
New to paying taxes? Here's everything you need to know under the Nigeria Tax Act 2025, step by step.
Get Your Tax Identification Number (TIN)
Your TIN is your unique tax identity. Every individual and business that earns income must have one — for filing returns, opening bank accounts, and winning government contracts. You'll need your NIN, BVN, and for businesses — your CAC certificate.
Retrieve Your TIN on NRS Portal →Understand What Taxes You Owe
Employees (PAYE): Your employer deducts monthly — no action needed unless you have side income. Freelancers: Self-declare annually. First ₦800,000 is tax-free. Small businesses (₦100m turnover or less): Exempt from CIT & Development Levy. Larger companies: CIT 25% + Development Levy 4% + VAT 7.5%.
Keep Proper Records All Year
The law requires accurate records of income, expenses, and transactions. Penalties for non-disclosure: ₦50,000 to ₦1 million. Billing+ makes this easy — create invoices, generate receipts, track expenses, and export reports ready for tax filing. All from your phone.
Start Tracking for Free →File Your Tax Returns
Personal income tax → file with your state IRS. CIT, VAT, Development Levy → file with the Nigeria Revenue Service (NRS, formerly FIRS). Deadlines: Individuals by March 31st. Companies within 6 months of year-end. Most states accept online filing.
Pay Your Tax & Get Your Clearance Certificate
Pay via bank transfer, your state IRS portal, or at designated banks. Then apply for your Tax Clearance Certificate (TCC) — required for government contracts, bank loans, business registration, passport applications, and property purchases.
Find Your State Tax Board
Select your state to visit your IRS website for TIN registration, tax filing, payment, and clearance certificates.
Frequently Asked
Questions
Everything you need to know about the Nigeria Tax Reform 2025.
What is the new tax-free threshold in Nigeria?
Under the Nigeria Tax Act 2025, the first ₦800,000 of annual income is completely exempt from personal income tax. This applies to all individuals including freelancers, self-employed workers, and salaried employees.
What are the new CIT rates for 2026?
Small companies (turnover ≤ ₦100m, assets ≤ ₦250m): 0% (exempt).
Medium companies: 20% CIT.
Large companies (turnover ≥ ₦50m): 25% CIT (reduced from 30%).
All non-exempt companies also pay a 4% Development Levy on assessable profits.
Has the VAT rate changed?
No. The VAT rate remains at 7.5%. However, input VAT recovery has been expanded — businesses can now claim input VAT on services and capital assets (previously limited to goods). Zero-rated items now include exports, basic foods, medical products, educational materials, and electricity.
What is the Development Levy?
The Development Levy is a new 4% charge on assessable profits that replaces four previous levies: Tertiary Education Tax (2.5%), NASENI Levy (0.25%), IT Levy (1%), and Police Trust Fund Levy (0.005%). Small businesses with turnover ≤ ₦100 million are exempt.
How does this affect freelancers and remote workers?
Freelancers benefit from the new ₦800,000 tax-free threshold. You must self-declare your annual income. Foreign income is taxable at the official CBN exchange rate. Penalties for non-disclosure range from ₦50,000 to ₦1 million, or up to 3 years imprisonment for serious violations.
When do these changes take effect?
The four Nigeria Tax Reform Bills were signed into law on June 26, 2025, and take effect from January 1, 2026. The 2026 tax year is the first full year under the new rules.
Arabic
Spanish
French
Dutch
German
Italian
Portuguese
Swahili