How much tax do freelancers pay in Nigeria?

Self-employed and freelance income is taxed under the same personal income tax bands as salary — from the ₦800,000 zero band up to 25% — but on your profit (income less allowable expenses) rather than gross pay. You file and pay yourself instead of an employer deducting it.

How much should I set aside for tax as a freelancer?

A practical approach is to set aside your effective tax rate on each payment as it comes in, rather than facing the whole bill at filing. Because the rate rises with income, estimating from your expected annual profit gives a safer monthly figure than guessing.

Do freelancers have to charge VAT?

You only charge and remit VAT once your turnover passes the small-business cap of ₦100,000,000. Below it you are treated as a small business and do not charge 7.5% VAT, though your clients may still withhold tax at source on your invoices.

IndividualUpdated 15 January 2026

Freelancer / self-employed estimator

What you owe on your own income, and — the bit that actually matters — how much to set aside each month so it is there when the bill comes.

Tax year

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Your business

Annual revenue

Allowable business expenses

Reliefs

Annual rent you pay

I make voluntary pension contributions

You have no employer scheme, so there is no automatic 8%. Contributions you make yourself are deductible.

Other employment income

WHT your clients already deducted

If clients withheld tax from your invoices, add it here. Whether you get it back depends entirely on what the payment was for — some of it is a credit, some of it is a final tax you never see again.

Enter your revenue on the left. The number you want is the set-aside — how much of every month to keep back for tax.

Why the set-aside is the number

Nobody with a salary has to think about this, because their employer does it for them every month. On your own, the bill arrives once a year for money you earned and spent eleven months ago. So the useful output is not really “your tax is ₦X” — it is “keep ₦Y back from every month and you will be fine”. That is why it is the headline here.

Common questions

How much tax do freelancers pay in Nigeria?: Self-employed and freelance income is taxed under the same personal income tax bands as salary — from the ₦800,000 zero band up to 25% — but on your profit (income less allowable expenses) rather than gross pay. You file and pay yourself instead of an employer deducting it.
How much should I set aside for tax as a freelancer?: A practical approach is to set aside your effective tax rate on each payment as it comes in, rather than facing the whole bill at filing. Because the rate rises with income, estimating from your expected annual profit gives a safer monthly figure than guessing.
Do freelancers have to charge VAT?: You only charge and remit VAT once your turnover passes the small-business cap of ₦100,000,000. Below it you are treated as a small business and do not charge 7.5% VAT, though your clients may still withhold tax at source on your invoices.