Nigerian Tax Guide 2025
A complete reference to Nigerian tax under the Nigeria Tax Act 2025, in force since 1 January 2026 — personal and company rates, reliefs, thresholds and deadlines.
Personal income tax
| Annual taxable income | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 (to ₦3,000,000) | 15% |
| Next ₦9,000,000 (to ₦12,000,000) | 18% |
| Next ₦13,000,000 (to ₦25,000,000) | 21% |
| Next ₦25,000,000 (to ₦50,000,000) | 23% |
| Above ₦50,000,000 | 25% |
- Rent relief: 20% of annual rent, capped at ₦500,000. It replaces the Consolidated Relief Allowance (CRA), which the Nigeria Tax Act 2025 removed.
- Minimum-wage exemption: employees earning ₦70,000 or less per month pay no PAYE.
- Pension: 8% mandatory employee contribution on Basic, Housing and Transport. Voluntary contributions are also deductible.
- NHF: 2.5% of basic salary.
Company income tax
- Small companies — turnover ≤ ₦50,000,000 and fixed assets ≤ ₦250,000,000, excluding professional-services firms — pay 0% CIT and are exempt from the Development Levy.
- Other companies pay 30% CIT, reducible to 25% by executive order.
- The Development Levy is 4% and replaces the former Tertiary Education Tax.
- Minimum tax is 0.5% of turnover for large companies.
VAT, CGT and withholding tax
- VAT: 7.5%.
- Capital Gains Tax: individuals pay the progressive 0%–25% rates, companies 30%; the exemption threshold is ₦150,000,000.
- Withholding Tax: 10% on dividends, interest and rent; 5% (individuals) or 10% (companies) on consultancy, professional and technical fees; 2% on the supply of goods. Having no TIN can double the rate.
Deadlines
| Tax | Deadline | Paid to |
|---|---|---|
| PAYE | 10th day of the following month | State Internal Revenue Service |
| Employer annual PAYE return (Form H1) | 31 January | State Internal Revenue Service |
| VAT | 21st day of the following month | Nigeria Revenue Service (NRS) |
| Withholding Tax | 21st day of the following month | Nigeria Revenue Service (NRS) |
| Company Income Tax | Within 6 months of the accounting year-end | Nigeria Revenue Service (NRS) |
| Personal Income Tax (self-assessment) | 31 March each year | State Internal Revenue Service |