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, and 2% on general contracts or goods supply. 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.

Yes, it's free with no account needed. Calculations run on your device and are never sent to a server.

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)).