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.
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.
| Band | Rate |
|---|---|
| ₦0.00 – ₦800,000.00 | 0% |
| ₦800,000.00 – ₦3,000,000.00 | 15% |
| ₦3,000,000.00 – ₦12,000,000.00 | 18% |
| ₦12,000,000.00 – ₦25,000,000.00 | 21% |
| ₦25,000,000.00 – ₦50,000,000.00 | 23% |
| Above ₦50,000,000.00 | 25% |
Yes — switch to 'Take-home' mode to enter the net pay you want and TaxLane solves for the gross income needed to reach it, using the same bands and reliefs above.
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, 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.
Sourced from the Nigeria Tax Act 2025 — see full citations →
Curious exactly what changed under the 2025 Tax Act? Read the guide.