What changed
- Freelance and foreign business income: business-income estimates no longer apply the minimum-wage exemption for employees.
- Planning tools: fixed how decimal amounts and rates are read.
- Payroll: mortgage and life-insurance tax reliefs are separate from money deducted from pay. Insurance relief uses eligible premiums paid in the preceding year.
- Company tax: you can enter separate profit figures for income tax and development levy.
Used an affected tool before this update? Recalculate your estimate. Employers should review affected payroll records. Previously finalised payroll records remain unchanged.
Rules and coverage
Official sources checked:
These tools use 2026 tax rules. The September update corrected our calculations; it did not change the tax rates.
Salary, payslip checks and payroll
Annual taxable-income bands remain 0%, 15%, 18%, 21%, 23% and 25%. Rent relief remains 20% of eligible annual rent, capped at ₦500,000. The minimum-wage employment exemption is separate from the zero-rate band.
Regular monthly pay only. The personal calculator accepts pension, NHF, NHIS and rent relief; mortgage and life-insurance reliefs are available in payroll. Eligibility and supporting records still matter.
References: Act, sections 30, 58 and 162(1)(t); Fourth Schedule, and JRB deductions guidance. See the PAYE calculation.
Freelance and foreign business income
These tools use personal income-tax bands on sole-trader profit supported by records. They do not calculate presumptive tax, virtual-asset income, mixed income or foreign-tax credits.
Receiving payment in foreign currency does not, by itself, determine the tax you owe.
Company income tax and development levy
The linked Act uses 30% of total profits for company income tax and 4% of assessable profits for development levy, with small-company relief. Its size limits are ₦100 million turnover and ₦250 million total fixed assets.
The simple estimate uses revenue minus expenses for both taxes. Enter figures from your tax computation to use distinct bases. The planner does not determine incentives, losses, special-sector taxes or minimum effective tax.
References: Act, sections 27, 56, 59 and 201. For accounting periods ending before 1 January 2026, use the transition guidance rather than this estimate.
Investment withholding
This tool multiplies a payment by the rate you confirm. It does not choose the rate, apply treaty relief or calculate tax on investment gains or virtual assets.
Check the withholding regulations and any applicable exemption with your revenue authority.
Official sources
- Nigeria Tax Act 2025Sections 27, 30, 56, 58, 59, 162 and 201; Fourth Schedule.
- JRB Personal Income Tax Guidelines 2026Deductions and bands: paragraphs 8–9; Appendix 1. Dated 24 February 2026; announced 7 April.
- Tax Acts transition guidanceFinance Ministry announcement on earlier tax periods, 18 June 2026.
- Presumptive Tax Regulations 2026Scope and assessment: regulations 1–3 and 6.
- Guidelines on Taxation of Virtual AssetsNRS/JRB circular 2026/21, 31 July 2026.
- Withholding Tax Regulations 2024Payment categories, rates and conditions.
Spotted a change? Email us the official source.