Understanding Nigeria’s 2025 Tax Laws
The Nigeria Tax Act 2025 simplifies personal income tax (PIT) for individuals (e.g., salaried workers, self-employed). Key features: Calculate your Tax on this page: https://guud.online/tax-compute/nigeria-tax-2025.html
- Tax-Free Threshold: First ₦800,000 of taxable income is tax-free.
- Progressive Rates:
- 0% on first ₦800,000
- 15% on ₦800,001–₦3,000,000
- 18% on ₦3,000,001–₦12,000,000
- 21% on ₦12,000,001–₦25,000,000
- 23% on ₦25,000,001–₦50,000,000
- 25% on above ₦50,000,000
- Rent Relief: 20% of rent paid, up to ₦500,000, is deductible.
- Deductions: Includes pension (8%), NHF (2.5%), NHIS (variable, often 5%).
- Minimum Tax: If tax is too low, 1% of gross income may apply (e.g., for informal earners).
- Changes: Old reliefs like Consolidated Relief Allowance (CRA) are gone; exemptions like gratuity removed.
Calculate your Personal Income Tax on this page based on the Nigeria Tax Law 2025 that will take effect by January 1, 2026.