Personal income tax
The bands, reliefs and exemptions that decide your PAYE — 2026 beside 2025, because the reform is only legible as a comparison.
Every figure on this page is read from the same configuration the calculators use — none of it is typed into the page. If a number here is wrong, the calculators are wrong too, and a changelog entry will record the correction.
Rate bands
Bands are cumulative: each slice of chargeable income is taxed at its own rate, and no rate ever applies to the whole. Chargeable income is what is left after deductions — it is not your salary. See PAYE explained.
| Chargeable income | Width of band | Rate |
|---|---|---|
| First ₦800,000 | ₦800,000 | 0% |
| ₦800,000 to ₦3,000,000 | ₦2,200,000 | 15% |
| ₦3,000,000 to ₦12,000,000 | ₦9,000,000 | 18% |
| ₦12,000,000 to ₦25,000,000 | ₦13,000,000 | 21% |
| ₦25,000,000 to ₦50,000,000 | ₦25,000,000 | 23% |
| Above ₦50,000,000 | No upper limit | 25% |
The first ₦800,000 of chargeable income is taxed at 0% — a zero band, not an allowance.
| Chargeable income | Width of band | Rate |
|---|---|---|
| First ₦300,000 | ₦300,000 | 7% |
| ₦300,000 to ₦600,000 | ₦300,000 | 11% |
| ₦600,000 to ₦1,100,000 | ₦500,000 | 15% |
| ₦1,100,000 to ₦1,600,000 | ₦500,000 | 19% |
| ₦1,600,000 to ₦3,200,000 | ₦1,600,000 | 21% |
| Above ₦3,200,000 | No upper limit | 24% |
Tax starts at the first naira of taxable income — there is no zero band under the old regime.
Reliefs
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Consolidated Relief Allowance available | No | Yes |
| CRA — fixed floorThe higher of this floor or the percentage below, plus the 20% element. | — | ₦200,000 |
| CRA — percentage floor of gross income | — | 1% |
| CRA — percentage of gross income | — | 20% |
| Rent relief available | Yes | No |
| Rent relief — percentage of rent paid | 20% | — |
| Rent relief — capThe cap binds once annual rent passes ₦2,500,000. | ₦500,000 | — |
The Consolidated Relief Allowance is abolished from 2026 and replaced by rent relief. Homeowners and anyone not paying rent get no equivalent — a real loser from the reform.
Work out your own figure with the rent relief calculator, or see the whole effect with the old vs new regime comparison.
Minimum tax
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Applies | No | Yes |
| Rate of gross income | — | 1% |
Minimum tax on individuals is abolished from 2026. A nil liability is a real nil.
Exemptions
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Minimum wage — monthly gross at or below this is exempt | ₦70,000 | ₦70,000 |
| Compensation for loss of office — exempt up to | ₦50,000,000 | ₦10,000,000 |
| Gratuity exemptGratuity lost its exemption on 1 January 2026 and is now taxable in full. | No | Yes |
Gratuity loses its exemption from 2026 and becomes taxable. Compensation for loss of office is exempt up to ₦50,000,000.
Check your own position with the tax-exempt eligibility checker or the gratuity calculator.
Benefits in kind
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Use of an asset — annual valueAs a percentage of the asset’s cost. | 5% | 5% |
| Employer accommodation — capValued at annual value, but capped at this share of cash emoluments. | 20% | 20% |
Statutory deductions and employer costs
| 2026 new regime | 2025 old regime | |
|---|---|---|
| Pension — employeeCharged on basic + housing + transport, not on gross emoluments. | 8% | 8% |
| Pension — employer | 10% | 10% |
| NHF — of basic salary | 2.5% | 2.5% |
| NSITF — employer | 1% | 1% |
| ITF — employer | 1% | 1% |
| ITF — turnover trigger | ₦50,000,000 | ₦50,000,000 |
| ITF — headcount trigger | 5 staff | 5 staff |
| Group life — multiple of annual pay | 3× | 3× |
NHF is compulsory for public-sector employees and voluntary for private-sector employees. ITF applies where headcount ≥ 5 OR turnover ≥ ₦50m.
Tools that use these rates
- PAYE / net-salary calculator — your take-home and monthly PAYE, with the band ladder.
- Old vs new regime comparison — whether the reform left you better or worse off.
- Tax-exempt eligibility checker — whether you owe anything at all.
- Payroll / PAYE bulk calculator — the whole payroll, plus employer costs.
Where these rates come from
- Nigeria Tax Act 2025, Fourth Schedule — verified 15 January 2026The first ₦800,000 of chargeable income is taxed at 0% — a zero band, not an allowance.
- Personal Income Tax Act (as amended), Sixth Schedule — verified 15 January 2026Tax starts at the first naira of taxable income — there is no zero band under the old regime.
- Nigeria Tax Act 2025, s.30 (rent relief) — verified 15 January 2026The Consolidated Relief Allowance is abolished from 2026 and replaced by rent relief. Homeowners and anyone not paying rent get no equivalent — a real loser from the reform.
- Personal Income Tax Act (as amended), s.33 (Consolidated Relief Allowance) — verified 15 January 2026CRA = higher of ₦200,000 or 1% of gross income, plus 20% of gross income. CONFLICT CRA_GROSS_BASE: what counts as gross income here has been contested since the Finance Act 2020.
- Nigeria Tax Act 2025 — verified 15 January 2026Minimum tax on individuals is abolished from 2026. A nil liability is a real nil.
- Personal Income Tax Act (as amended), s.37 (minimum tax) — verified 15 January 2026Minimum tax of 1% of gross income applies where it exceeds the computed liability. This is why low earners still paid tax before 2026.
- Nigeria Tax Act 2025, exempt income provisions — verified 15 January 2026Gratuity loses its exemption from 2026 and becomes taxable. Compensation for loss of office is exempt up to ₦50,000,000.
- Personal Income Tax Act (as amended), Third Schedule — verified 15 January 2026Gratuity was fully exempt under the old regime. Compensation for loss of office was exempt to ₦10,000,000.
- Nigeria Tax Act 2025, benefits-in-kind valuation — verified 15 January 2026
- Pension Reform Act 2014 · NHF Act · NSITF Act · ITF Act — verified 15 January 2026NHF is compulsory for public-sector employees and voluntary for private-sector employees. ITF applies where headcount ≥ 5 OR turnover ≥ ₦50m.
A rate reference is not tax advice, and a rate on its own does not tell you your position. Read the disclaimer, and confirm anything load-bearing against the gazette before acting on it.