Calculate ordinary annual individual income tax under the 2026 rules. Employment, business and other income remain separate. The form excludes qualifying minimum-wage employment without cancelling tax on unrelated income, and separates tax credits from any estimated cash remaining.

Formula

Chargeable income = max(income after exclusions − eligible deductions, 0). Progressive rates: 0% to ₦800,000; 15% to ₦3 million; 18% to ₦12 million; 21% to ₦25 million; 23% to ₦50 million; 25% above. Balance due = annual tax less creditable PAYE/WHT, with excess credits shown separately.

Examples

Employee with rent and pension

Annual cash pay ₦6,000,000, pension contributions ₦300,000 and eligible 2026 rent ₦1,200,000 produce rent relief ₦240,000, chargeable income ₦5,460,000 and annual tax ₦772,800.

A PRACTICAL GUIDE

When to use this calculator

The personal income-tax estimate distinguishes income, exclusions, documented deductions and credits already paid. It is useful for understanding the progressive calculation and the balance remaining, without assuming that a simple percentage of gross receipts describes every taxpayer's liability.

Information to prepare

Prepare the relevant income categories, rent-relief information and eligible deductions requested by the form. Check the precise conditions of the minimum-wage exemption. The fact that a calculated chargeable amount is small does not by itself establish eligibility for an exemption tied to another test.

How to interpret the result

Gross income, taxable income and tax liability are different quantities. A deduction can change the tax base, while a credit or prior payment can change liability or the remaining balance. Under progressive bands, the marginal rate does not necessarily apply to the whole income. An effective rate depends on the denominator used: gross receipts, net income and taxable income can produce different percentages. Read the component labels and included reliefs before treating an effective percentage as a rate for another income scenario.

A practical comparison

When comparing an estimate with PAYE or withholding, keep the annual tax calculation separate from the credits applied against it. Excess credits are not the same as negative income. For VAT on an invoice, use the VAT calculator and the relevant transaction base.

Check your calculation step by step

  1. Match the figures to the selected period and use NGN for monetary inputs. If you start with a document in another currency or covering several periods, resolve that difference before entering a combined amount.
  2. Calculate the documented case first. Then change one input at a time to compare scenarios. Keep the original values available so a change in the result can be traced to a particular assumption rather than several simultaneous edits.
  3. Read the component breakdown alongside the formula and examples below. If an official document differs, check the date, base, rounding and omitted concepts before changing a rate or treating the difference as an error.

Continue with a related calculation

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If you are comparing countries

Open the relevant jurisdiction when comparing a move, an offer or a transaction abroad. Each tool uses its own currency, period and scope; its result should not be substituted into the current calculation.

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Frequently asked questions

Does a minimum-wage salary exempt all my income?

No. The statutory exemption applies to qualifying employment income. Business and other taxable income still enter the calculation. Confirm eligibility for the employment period; the current national minimum wage used is ₦70,000 monthly.

Which rent qualifies?

Enter your own paid share attributable to the 2026 calendar year. Rent covering several years must be allocated to the year covered. The relief is 20% of that amount, limited to ₦500,000.

Which life-insurance payment is deductible?

JRB guidance uses eligible premiums or annuity payments made in the preceding year. For 2026, enter qualifying 2025 payments. The optional cash estimate has a separate field for premiums actually paid in 2026.

Are tax deductions the same as cash expenses?

No. Rent relief is only a fraction of eligible rent, benefits in kind are not cash, and tax prepayments settle the existing tax liability. The optional cash estimate requires actual payments and assumes business/other income represents available cash.

Can this calculate earlier tax years?

This form is for 2026. Earlier years require the previous legislation. A year outside its scope must not be presented as zero tax.

CHECK THE REFERENCES

Official sources