Updated for Nigeria Tax Act 2025

Navigate Nigerian Taxes with Confidence

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Snap a receipt, and our AI extracts vendor, amount, date, and categorizes it for Nigerian tax compliance. Track expenses, generate invoices, and see your tax liability in real-time.

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Making tax compliance effortless for the Nigerian community—and building the infrastructure for a transparent future.

₦800K

Tax-free threshold

0%

Small company CIT

50+

Tax exemptions

7.5%

VAT rate

Nigeria Tax Brackets 2025

Personal Income Tax rates under Nigeria Tax Act 2025

BracketAmountRate
First₦800,0000%
Next₦2,000,00015%
Next₦2,400,00018%
Next₦5,000,00021%
Next₦30,000,00023%
Above₦40,200,00025%

Key Change in 2025: If you earn ₦800,000/year or less (about ₦66,667/month), you pay 0% tax. This exempts minimum wage earners from income tax entirely.

Source: Nigeria Tax Act 2025, Schedule 1

Why Tax Compliance Matters

Beyond avoiding penalties, proper tax filing unlocks real benefits

Build Financial Identity

Banks require Tax Clearance Certificates for loans and mortgages. Your TCC shows 3 years of tax history.

Section 72(2), NTA 2025

Access Government Contracts

TCC required for government contracts, import/export licenses, building approvals, and trade licenses.

Section 72(4), NTA 2025

Avoid Heavy Penalties

False disclosure: ₦5M penalty. Tax evasion: up to 3 years imprisonment or 50% fine of amount owed.

Section 65 & 107, NTA 2025

Contribute to Development

Your taxes fund infrastructure, healthcare, and education. Be part of building a better Nigeria.

Federal Allocation: Education 10%, Health 5%

0%

Tax for minimum wage earners

≤₦800,000/year exempt

0%

CIT for small companies

≤₦50M turnover exempt

90%

Workers pay less tax

Lower rates for most Nigerians

Frequently Asked Questions

What changed in Nigeria Tax Act 2025?

Key changes include: 0% tax for minimum wage earners (≤₦800,000), progressive rates from 15% to 25%, simplified reliefs with Consolidated Relief Allowance (CRA), and 0% CIT for small companies under ₦50M.

Am I exempt from paying tax?

If your annual income is ₦800,000 or less (about ₦66,667/month), you pay 0% tax under the 2025 reforms. This exempts minimum wage earners from income tax.

What is the VAT rate in Nigeria?

VAT is 7.5%. Food, education, healthcare, and exports are zero-rated (0%). Financial services, rent, and public transport are exempt.

How is Corporate Income Tax calculated?

CIT depends on company size: Small companies (≤₦50M turnover) pay 0%, Medium companies (₦50M-₦100M) pay 20%, Large companies (>₦100M) pay 30%.

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TaxHQ - Nigeria Tax Calculator 2026 | PIT, VAT, CIT