Tax Guide (₦) – Effective Jan 2026
2026 Nigeria Personal Income Tax Guide (Disclaimer & Assumptions)
Disclaimer
This calculator is provided for informational and educational purposes only.
It gives a rough estimate of potential tax obligations under Nigeria’s Personal Income Tax (Amendment) Act, 2025, expected to take effect from January 1, 2026.
Actual tax liabilities may differ depending on:
- Individual circumstances
- Employer payroll computations
- Approved allowances, reliefs, or deductions
- Implementation details from the Federal Inland Revenue Service (FIRS) or state tax authorities
Always consult a qualified tax adviser or the FIRS for official guidance before making financial decisions.
How the Calculator Works
This tool estimates your annual personal income tax based on your gross annual income and annual rent paid (for rent relief).
It applies the progressive tax bands announced under the 2025 reform.
Here’s how it works step-by-step:
- Input your total annual income (₦).
- Optionally input your annual rent (₦) — used to calculate rent relief.
- The calculator:
- Deducts your rent relief (the lower of 20% of rent paid or ₦ 500,000).
- Applies the 2026 tax bands to the remaining taxable income.
- Displays your estimated tax and net income after tax.
Tax Bands Used in This Calculator (Effective January 2026)
| Taxable Income Range (₦) | Tax Rate | Notes |
|---|---|---|
| Up to ₦ 800,000 | 0% | Tax-free threshold |
| Next ₦ 2.2 million | 15% | Middle-income band |
| Next ₦ 9 million | 18% | Upper-middle income |
| Next ₦ 13 million | 21% | Higher income bracket |
| Next ₦ 25 million | 23% | Wealth bracket |
| Above ₦ 50 million | 25% | Top income earners |
Rent Relief (New Provision)
Taxpayers can deduct a rent relief from their taxable income, calculated as the lower of:
- 20% of annual rent paid, or ₦ 500,000
Example
If your annual income is ₦ 5,000,000 and you pay ₦ 1,200,000 yearly in rent:
- Rent relief = ₦ 240,000 (20% of ₦ 1.2 m)
- Taxable income = ₦ 4,760,000
- Tax is then calculated progressively using the bands above.
- Your net income is displayed after deducting estimated tax.
Final Note
This calculator is designed to help individuals and businesses get a quick sense of how the 2026 tax structure may affect take-home pay or salary planning.
