Nigeria Tax Calculator
Estimate your tax for free. No sign-up required. No data saved.
Small company exemption is applied when turnover ≤ ₦100,000,000 and fixed assets ≤ ₦250,000,000.
+ Include VAT calculation
VAT payable is usually Output VAT − Input VAT (if negative, you may have VAT credit).
Disclaimer: This is an estimate for planning. Consult a tax consultant to avoid errors.
Understanding your results
For Employees (PAYE): salary-based. Deductions here mean things like pension and rent relief.
For Creators/Business Name: you’re taxed on profit: revenue minus your real business costs. Then personal reliefs (like rent) can reduce the taxable amount.
For Limited Liability Company (Ltd): taxed on assessable profit (profit minus capital allowances). If you qualify as a small company, tax may be 0%. Big companies may also owe a 4% Development Levy.
For Creators/Business Name: you’re taxed on profit: revenue minus your real business costs. Then personal reliefs (like rent) can reduce the taxable amount.
For Limited Liability Company (Ltd): taxed on assessable profit (profit minus capital allowances). If you qualify as a small company, tax may be 0%. Big companies may also owe a 4% Development Levy.
About This Tax Calculator
This Nigerian Tax Calculator by Peng Logistics lets individuals, small business owners and registered companies estimate how much tax they are likely to pay under the new tax laws taking effect from 2026. Enter your income and choose monthly or annual, the tool applies the correct tax rules. It also shows key reliefs and contributions so you understand exactly what affects your take-home and taxable profits.Resources
✅ How to Calculate Your Personal Income Tax (PAYE)✅ How to Calculate Your Business Tax
Frequently Asked Questions
Why this Nigerian Tax Calculator?
This tool helps Nigerians estimate their taxes under the Nigeria Tax Act 2025 (effective 2026). It works for salary earners (PAYE), freelancers, business names, and limited liability companies.
What is Personal Income Tax (PIT) and PAYE?
Personal Income Tax (PIT) is tax paid by individuals on what they earn in a year.
PAYE (Pay-As-You-Earn) is simply how that tax is collected for employees. It's deducted monthly by employers based on annual income calculations.
PAYE (Pay-As-You-Earn) is simply how that tax is collected for employees. It's deducted monthly by employers based on annual income calculations.
What does “income” or “revenue” mean here?
This means money earned before deductions:
- Employees: salary, wages, bonuses, allowances.
- Freelancers & business names: total money earned from work or sales.
- Companies: total annual turnover.
What are expenses and why do they matter?
Expenses are costs required to earn income. Examples include shop or office rent, logistics, fuel, staff wages, internet, electricity, inventory, and marketing.
For businesses and companies, tax is calculated on profit, not total revenue.
For businesses and companies, tax is calculated on profit, not total revenue.
What is profit and how is it calculated?
Profit = Income − Expenses
Nigerian tax law does not tax your total inflow. It taxes what remains after legitimate costs are deducted.
Nigerian tax law does not tax your total inflow. It taxes what remains after legitimate costs are deducted.
What deductions apply to employees (PAYE)?
Employees may reduce taxable income using:
- Pension contributions
- Statutory contributions
- Rent relief
How does rent relief work?
Rent is not deducted in full.
The law allows individuals to deduct the lower of:
The law allows individuals to deduct the lower of:
- 20% of annual rent paid, or
- ₦500,000 per year
How are business names and freelancers taxed?
Business names and freelancers are taxed under personal income tax.
You first deduct business expenses to get profit. Personal reliefs are then applied, and tax is calculated on what remains.
You first deduct business expenses to get profit. Personal reliefs are then applied, and tax is calculated on what remains.
How are limited liability companies (Ltd) taxed?
Companies are taxed under Company Income Tax (CIT).
- If annual turnover is ≤ ₦50 million (some sources say 100 million) and fixed assets ≤ ₦250 million, the company qualifies as a small company and pays 0% CIT.
- Larger companies pay CIT on assessable profit.
What is the Development Levy?
The Development Levy applies mainly to companies that do not qualify as small companies.
It is charged separately from company income tax and is based on assessable profit, which is why companies may see more than one tax line.
It is charged separately from company income tax and is based on assessable profit, which is why companies may see more than one tax line.
What is VAT and should I include it?
VAT (Value Added Tax) is currently charged at 7.5% on goods and services.
VAT is not income. Businesses usually remit the difference between VAT collected from customers and VAT paid on expenses.
VAT is not income. Businesses usually remit the difference between VAT collected from customers and VAT paid on expenses.
Is monthly or annual input better?
Both work. Nigerian tax is calculated annually. If you enter monthly figures, the calculator converts them to annual amounts automatically.
Do low-income earners pay tax?
After applying allowable reliefs and deductions, some low-income earners may have little or no taxable income. This is why reliefs and exemptions are important in the calculation.
Does this calculator save my data?
No. The calculator runs entirely in your browser. No personal or financial data is stored or shared.
Is this a replacement for a tax consultant?
No. This tool provides estimates to help you understand your tax position. For filing, audits, or disputes, professional advice is still recommended.
