Nigeria Personal Income Tax Rates for 2026
After applicable reliefs and exemptions, an individual's chargeable income is taxed progressively under the Fourth Schedule to the Nigeria Tax Act 2025. The current bands are:
| Chargeable income band | Tax rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 | 15% |
| Next ₦9,000,000 | 18% |
| Next ₦13,000,000 | 21% |
| Next ₦25,000,000 | 23% |
| Above ₦50,000,000 | 25% |
The Act also provides specific treatment for persons earning the statutory minimum wage and for eligible deductions and exemptions.
PAYE and Individual Tax Compliance
Employees generally meet their employment-income tax obligations through employer deductions under the applicable pay-as-you-earn system. Employers must file annual returns of employee emoluments with the relevant tax authority not later than 31 January for the preceding year. Employees are also subject to the annual income-return requirements of the Nigeria Tax Administration Act 2025.
Self-employed persons and other taxable individuals must file the prescribed annual income return with the relevant tax authority and report income from the applicable sources. Low-income earners and persons in the informal sector may be covered by simplified-return guidelines issued by the relevant tax authority.
Company Income Tax in Nigeria
Under section 56 of the Nigeria Tax Act 2025, a qualifying small company is taxed at 0%, while other companies are generally taxed at 30%. For this purpose, the Act defines a small company by reference to annual gross turnover and fixed-asset thresholds.
| Company category | Income tax rate | Key current threshold/rule |
|---|---|---|
| Small company | 0% | Gross turnover of ₦100 million or less per annum and total fixed assets not exceeding ₦250 million. |
| Other companies | 30% | General rate from commencement of the Act. The Act permits a future reduction to 25% by Presidential order on the advice of the National Economic Council. |
Development Levy
A 4% development levy is imposed on the assessable profits of companies chargeable under the relevant chapters of the Nigeria Tax Act 2025, other than small companies and non-resident companies. This replaces the older presentation of separate education-related levies for companies covered by the new framework.
Value Added Tax (VAT)
The standard Nigerian VAT rate remains 7.5% on taxable supplies, subject to statutory exemptions and zero-rated supplies. Non-resident persons making taxable supplies to Nigeria are also subject to registration and collection/remittance rules under the Act.
Capital Gains under the 2026 Tax Framework
The former standalone Capital Gains Tax Act has been repealed and chargeable gains are now integrated into the Nigeria Tax Act 2025. For companies, chargeable gains form part of total profits for company income-tax purposes. For individuals, chargeable gains are included in taxable income and are therefore subject to the applicable individual income-tax framework, subject to exemptions, deductions and special rules in the Act.
The Act contains specific provisions for disposals of shares in Nigerian companies, including thresholds and reinvestment rules. Taxpayers undertaking significant asset or share disposals should check the current statutory conditions before calculating liability.
Company Tax Return Filing Deadlines
| Taxpayer | General filing deadline |
|---|---|
| Company in business for more than 18 months | Not more than 6 months after the end of its accounting year. |
| Newly incorporated company | Within 18 months from incorporation or not later than 6 months after the end of its first accounting period, whichever is earlier. |
| Company permanently ceasing business | Not later than 6 months from the date of permanent cessation. |
| Employer annual employee-emolument return | Not later than 31 January for the preceding year. |
Official Nigeria Tax Resources
Related International Tax Rate Pages
Disclaimer: Tax rules can depend on taxpayer status, residence, source of income, sector, exemptions, incentives and administrative guidance. This page provides a general overview and should not replace professional advice for a particular transaction or filing.