This simple tax guide helps you understand how much personal income tax you may pay in Nigeria from January 1, 2026. It explains the expected rules under the Personal Income Tax (Amendment) Act, 2025.
This tool is for guidance only. It gives an estimate and not a final tax calculation. Your actual tax may be different based on:
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Your financial situation
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Your employer’s payroll process
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Approved deductions and reliefs
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Official instructions from the Federal Inland Revenue Service (FIRS) or state tax authorities
For accurate advice, always speak with a qualified tax professional.
How the Calculator Works
The calculator estimates your tax based on:
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Your total yearly income
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(Optional) Your yearly rent amount
Steps
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Enter your yearly income.
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If you pay rent, enter the yearly rent amount.
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The calculator:
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Checks your rent relief (up to 20% of rent or ₦500,000 – whichever is lower)
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Subtracts that amount from your income
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Applies the new tax rates
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You get an estimate of:
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Your tax payable
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Your take-home (net) income
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2026 Personal Income Tax Brackets
| Taxable Income Range | Rate | Category |
|---|---|---|
| Up to ₦800,000 | 0% | Basic tax-free allowance |
| Next ₦2.2 million | 15% | Middle-income bracket |
| Next ₦9 million | 18% | Upper-middle income |
| Next ₦13 million | 21% | Higher-income bracket |
| Next ₦25 million | 23% | High-net-worth band |
| Above ₦50 million | 25% | Top-earner bracket |
Rent Relief
You can reduce your taxable income by claiming rent relief. The relief equals the lower of:
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20% of your annual rent, or
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₦500,000
This helps reduce tax pressure for renters, especially in major cities.
Example Calculation
Income: ₦5,000,000 per year
Annual rent: ₦1,200,000
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Rent relief: 20% × ₦1,200,000 = ₦240,000
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New taxable income: ₦5,000,000 – ₦240,000 = ₦4,760,000
The tax brackets above are then used to calculate your estimated tax and net income.
Final Note
The 2026 tax changes create a more progressive system and give support to rent-paying workers. This calculator is a helpful planning tool, but it is not a substitute for expert advice. As official guidelines are released, tax outcomes may change.
For the best results, confirm details with a tax expert or FIRS before making final financial decisions.
