TaxLane

The first ₦800,000.00 of taxable income is tax-free, then 15% up to ₦3,000,000.00, 18% up to ₦12,000,000.00, 21% up to ₦25,000,000.00, 23% up to ₦50,000,000.00, 25% above ₦50,000,000.00.

Nigeria's VAT rate is 7.5%, unchanged under the 2026 tax reform.

Taxable income is gross income less pension, NHF, and NHIS contributions, plus rent relief (20% of annual rent paid, capped at ₦500,000.00). Anyone earning at or below ₦70,000.00/month is fully exempt.

Yes. Under NTA §29 and the Presumptive Tax Regulations 2026, turnover below ₦12,000,000.00 owes no presumptive tax; turnover at or above that floor is taxed by default at 1% of turnover, though you may opt out of the presumptive regime and file under full self-assessment instead.

The old regime (in force through 2025) taxed income from ₦1 with no tax-free band, at rates from 7% to 24%, using a Consolidated Relief Allowance instead of itemized reliefs. See the old-vs-new comparison in the calculator.

Yes. Under NTA §56, a small company — gross turnover at or below ₦50,000,000.00/year and fixed assets at or below ₦250,000,000.00, excluding professional-services businesses — pays 0% Companies Income Tax. Filing is still required even at 0% owed; only the amount owed changes.

Yes. Under the Deduction of Tax at Source (Withholding) Regulations 2024, a client should withhold 5% on professional/consultancy fees or technical services, 10% on rent, 2% on general contracts or goods supply, 10% on dividends, 10% on interest, and 5% on royalties for individuals (10% for companies). This withholding tax (WHT) isn't extra tax — it's a credit against what you owe when you file your annual return.

Yes, in most cases. Under NTA 2025 §124 and the Ninth Schedule, a tenancy/lease agreement attracts 0.78% ad valorem duty (exempt if the annual value is under ₦10,000,000.00), property conveyances, share capital, loan capital, and marketable-securities transfers each carry their own ad valorem rate, and most other agreements carry a flat ₦1,000.00 residual duty. Instruments must be stamped within 30 days of execution under §126. Confirm whether to pay the Nigeria Revenue Service or your State IRS — NTA 2025 and NTAA 2025 both preserve stamp-duty administration powers, and the split isn't fully resolved.

No — under NTA 2025 §29, presumptive tax only applies where your income 'cannot be ascertained or records are not kept' well enough for a proper assessment. If you keep proper records, you're assessed under the ordinary direct-assessment mechanism instead: turnover less allowable business expenses (wholly and exclusively incurred in the production of the income, §20(1)) and any capital allowance, taxed at the same progressive rates as PAYE. Use the Self-Employed (Direct Assessment) calculator above to see which figure is lower for you.

Beyond gross pay, employers must contribute 10% of pensionable pay (basic + housing + transport) to pension, 10% of basic salary to NHIS, 1% of annual gross pay to NSITF, and 1% of annual gross pay to ITF — on top of the employee's own 8%/5% contributions. Together these make up the total statutory employer cost the Employer Cost calculator shows.

Pension is compulsory under the Pension Reform Act 2014 for employers with 15 or more staff (voluntary below that); NHIS is compulsory for employers with 5 or more staff at the organized private-sector rate. Both apply regardless of company size once those thresholds are met.

Yes, both are included. NSITF applies to every employer with no headcount or turnover threshold, so it's added unconditionally. ITF is also calculated unconditionally at 1% of annual payroll — in practice ITF only applies to employers with 5+ staff or ₦50 million+ annual turnover, but this calculator doesn't collect an employee-count or turnover input to gate on, so if your business is below both thresholds, subtract the ITF line from your total.

It depends which of the five ECOWAS Common External Tariff bands your goods fall into — 0% for essential/capital goods up to 35% for restricted/priority-sector goods — applied to your CIF (cost, insurance, and freight) value, plus a 4% FCS levy on FOB, a 7% surcharge on the duty amount, a 0.5% ECOWAS Trade Liberalisation Scheme levy on CIF, and 7.5% import VAT on the cumulative total. Confirm your own HS code and final duty with a licensed customs agent — this is a general-goods estimate, and NAFDAC/SON-clearance items carry additional fees not included. Vehicles have their own flat rate instead of these bands — toggle to 'Vehicle' mode on this calculator for Used (20% duty + 15% levy) or CKD (5% duty + 5% levy).

Yes, it's free with no account needed. Calculations run on your device and are never sent to a server — except the optional voice-input feature on amount fields, which sends your speech to your browser's own speech-recognition service to convert it to text.

No — for guidance only, not tax advice.

The NRS is Nigeria's federal tax authority — it collects PAYE, VAT, CIT and the other taxes TaxLane calculates. It was called the Federal Inland Revenue Service (FIRS) until the Nigeria Revenue Service (Establishment) Act 2025 renamed it, effective 1 January 2026. TaxLane is not affiliated with the NRS or any government body — see 'Is this official tax advice?' above.

No, not automatically. Under NTA §202, you're a Nigerian tax resident if you meet just one of six factors: you're domiciled in Nigeria, have a home available for your domestic use in Nigeria, have a habitual abode in Nigeria, have substantial economic and immediate family ties in Nigeria, sojourn in Nigeria for 183 days or more in a 12-month period (inclusive of any annual leave or temporary absence, which counts toward that total rather than against it), or serve as a Nigerian diplomat abroad. You're only non-resident once every one of those six fails at the same time — so a home merely available for your use, or a spouse and children remaining in Nigeria, is enough on its own to keep you resident, regardless of how many days you spend abroad. Once you're a resident, NTA §12 taxes your income on a worldwide basis, wherever it arises and whether or not you bring it into Nigeria.

Confirmed non-residents still owe Nigeria tax on several income categories. Employment income for duties performed in Nigeria remains taxable under NTA §13(1)(b) if it's paid by a Nigeria-resident employer, borne by a Nigerian branch or permanent establishment of a non-resident employer, or not taxed in your country of residence — any one of those three gateways is enough, not just the last one, so income paid by a Nigeria-resident employer stays taxable even if it's also taxed abroad. Beyond employment income, a non-resident also owes tax on capital gains on Nigerian-situated assets such as property or shares in a Nigerian company (§17(2)), dividends from a Nigerian company via final withholding tax (§19(1)), interest where the payer is Nigeria-resident regardless of where you live (§4(6)(a)), and rent or royalties on Nigerian-situated property or rights (§4(1)(b)).

No — not if the treaty applies to you. Nigeria has a tax treaty with both the UK (in force since 1988) and Canada (in force since 16 November 1999, despite a popular claim that no Canada-Nigeria tax treaty exists) and both continue under NTA 2025 §121(5) without needing re-ratification. Both work the same way: credit-method relief (UK Article 22(3)(a), Canada Article 23(3)(a)) means Nigeria credits the UK or Canada tax you already paid on that income against your Nigerian tax on it, capped at the Nigerian tax attributable to that income, so you're not taxed twice in full — but if Nigeria's rate on that income is higher than the UK or Canada's, you still owe Nigeria the difference, since this is a credit, not an exemption. The credit is only available if you're a genuine UK/Canada tax resident with beneficial ownership of the income (NTA §121(7)) — merely spending time there isn't enough.

No tax treaty exists between Nigeria and the US — the IRS's own list of US tax treaties doesn't include Nigeria. That doesn't mean you're taxed twice with no relief, though: both countries offer a unilateral credit instead of a treaty one. On the US side, IRC §901's foreign tax credit lets you credit Nigerian tax paid against your US tax on the same income. On the Nigeria side, NTA 2025 §120 offers its own unilateral credit for tax already paid abroad. Neither is a treaty-based credit, so neither comes with treaty-specific protections like a guaranteed residency test — but relief isn't limited to treaty countries.

If you're a confirmed non-resident with Nigeria-source income, Nigeria itself won't give you a credit for tax you paid abroad on that income — NTA §122(3) limits the Nigeria-side credit to people who were a Nigeria resident during the relevant year, and §120's unilateral credit carries the same resident-only gate. That's not the same as no relief existing at all: it just means relief in this case has to come entirely from the destination country's own credit mechanism — the UK/Canada treaty credit or the US's unilateral IRC §901 credit — not from Nigeria.

Yes. Under NTA 2025 §30(2)(a)(vi), rent relief (20% of annual rent paid, capped at ₦500,000.00) is conditional on accurately declaring the rent paid and any other information the tax authority prescribes — it isn't automatic just because you entered a figure. Claims must be made in writing on the authority's prescribed form (§31), and under §32 the tax authority can demand documentary evidence, such as a tenancy agreement or rent receipts, refusing the deduction (or the unsupported part of it) if that evidence is missing or inadequate.

A VAT-registered small business under ₦50 million in annual turnover — TaxLane’s typical user — is well under even the lowest ₦1 billion e-invoicing tier, which puts it in the “emerging taxpayer” group: not required to e-invoice today, and not required until the 1 July 2027 go-live.