Yes! This calculator uses the official 2026 Nigerian tax rates as published in the Nigeria Tax Act 2025 (effective January 1, 2026). It includes the new ₦800,000 tax-free threshold and all standard deductions.

The calculator includes pension contributions (default 8%), National Housing Fund (NHF) at 2.5% for employees, National Health Insurance Scheme (NHIS) at 5%, and rent relief (20% of annual rent, maximum ₦500,000).

Yes, if your income exceeds certain thresholds, you’re still required to file a tax return even if your calculated tax is zero. Filing helps you claim deductions and maintain good standing with tax authorities.

This calculator works for all income types. For freelancers and business owners, you may have additional deductions for business expenses. Consider working with us to track expenses and maximize your deductions.

We compare your tax under the new 2026 brackets with what you would have paid under the previous tax law. The old law had a lower tax-free threshold (₦300,000) and different progressive rates.

On a ₦1,000,000 annual salary in Nigeria (2026), you pay approximately ₦30,000 in tax after pension deductions. Your effective tax rate is about 3%. The first ₦800,000 is tax-free, and you pay 15% on the remaining ₦200,000.

Yes, under the Nigeria Tax Act 2025 (effective January 2026), the first ₦800,000 of your annual income is completely tax-free. This is a significant increase from the previous threshold of approximately ₦300,000.

To calculate Nigerian tax: 1) Take gross annual income, 2) Subtract pension (8%), NHF (2.5%), NHIS (5%), 3) Apply rent relief (20% of rent, max ₦500K), 4) First ₦800K is tax-free, 5) Apply progressive rates: 15% (₦800K-₦3M), 18% (₦3M-₦12M), 21% (₦12M-₦25M), 23% (₦25M-₦50M), 25% (above ₦50M).