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Nigeria Tax Guide Hub 2026: Income Tax, Rates & Calculator

KEY INSIGHT
Nigeria's 2026 game-changer: ₦800,000 tax-free threshold (up from ₦300,000). Rates 0-25%. Old CRA replaced by 20% rent relief (up to ₦500,000). FIRS becoming AI-driven NRS. Filing deadline: March 31. ₦100K penalty for late filing. A ₦3M earner pays ~₦330,000 tax (~11%).
At a glance

Key Facts

Tax-Free Threshold
₦800,000 annually
Tax Rate Range
0% - 25%
Maximum Rate
25% (over ₦50 million)
Introduction

Nigeria implemented major tax reform effective January 1, 2026, under the Nigeria Tax Act 2025. The new system introduces a generous ₦800,000 tax-free threshold (up from ₦300,000), meaning anyone earning below this pays no income tax. Rates range from 0% to 25%, with the top rate only applying to income above ₦50 million. The old Consolidated Relief Allowance (CRA) has been replaced by a simpler rent relief of up to ₦500,000. Use our PAYE calculator to estimate your Nigerian tax under the new system.

This hub links to every Nigeria tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.

Section 01

Nigeria Tax Guides

Detailed Nigeria tax guides on CountryTaxCalc:

Section 02

Nigeria Income Tax Calculator

Nigeria's income tax uses 6 tax brackets with ₦800,000 tax-free threshold (2026 Tax Reform). Use the calculator to estimate your take-home pay after income tax:

IncomeRate
₦0 - ₦800,0000% (tax-free)
₦800,001 - ₦3,000,00015%
₦3,000,001 - ₦12,000,00018%
₦12,000,001 - ₦25,000,00021%
₦25,000,001 - ₦50,000,00023%
Over ₦50,000,00025%
Section 03

Related Hubs

Nigeria tax connects with these hubs on CountryTaxCalc:

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FAQ

Frequently Asked Questions

What are Nigeria's income tax rates for 2026?

Nigeria's 2026 tax brackets are: 0% on income up to ₦800,000 (tax-free), 15% on ₦800,001-₦3 million, 18% on ₦3-₦12 million, 21% on ₦12-₦25 million, 23% on ₦25-₦50 million, and 25% on income above ₦50 million. These rates took effect January 1, 2026.

What is Nigeria's tax-free threshold in 2026?

The new tax-free threshold is ₦800,000 annually (about ₦66,667 monthly). If you earn ₦800,000 or less per year, you pay zero income tax. This is a significant increase from the previous ₦300,000 threshold under the old system.

What happened to Nigeria's Consolidated Relief Allowance (CRA)?

The CRA was abolished under the Nigeria Tax Act 2025. It has been replaced by a simpler 'rent relief' system where you can deduct 20% of your annual rent paid, up to a maximum of ₦500,000. This relief is applied before calculating your taxable income.

When is Nigeria's tax filing deadline?

The annual income tax return deadline in Nigeria is March 31 of the following year. For 2025 income, file by March 31, 2026. Late filing attracts a penalty of ₦100,000 in the first month, then ₦50,000 per month thereafter. False declarations can result in fines up to ₦1 million or imprisonment.
Disclaimer:This hub provides general information about Nigeria taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official Nigeria tax authority or a qualified local tax adviser. This is not tax or legal advice.
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