Federal Republic of Nigeria — PAYE, VAT, Pension, Excise Duties 2026
💰 Personal Income Tax Calculator (PAYE)
Calculate annual personal income tax under the Nigerian progressive tax system (Personal Income Tax Act). Top marginal rate: 24%. Consolidated Relief Allowance (CRA) is applied automatically.
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📌 Consolidated Relief Allowance (CRA):
CRA = Higher of ₦200,000 or 1% of gross income, PLUS 20% of gross income. This is automatically deducted before applying tax brackets. Additional tax-deductible items include: pension contributions (minimum 8%), National Housing Fund (2.5% of basic salary), and life assurance premiums.
📊 FIRS Income Tax Brackets 2026
Progressive personal income tax rates for individuals resident in Nigeria, per the Personal Income Tax Act (as amended).
Lower Limit (₦)
Upper Limit (₦)
Fixed (₦)
Rate %
0
300,000
0
7%
300,001
600,000
21,000
11%
600,001
1,100,000
54,000
15%
1,100,001
1,600,000
129,000
19%
1,600,001
3,200,000
224,000
21%
3,200,001
Above
560,000
24%
📌 Formula:
Tax = Fixed Amount + Rate × (Taxable Income − Lower Limit). The CRA (Consolidated Relief Allowance) is deducted from gross income before applying these brackets.
🏢 Statutory Deductions Overview
Item
Employee
Employer
Pension (CPS)
8%
10%
NHF (National Housing Fund)
2.5%
—
NHIS (Health Insurance)
2.5%
10%
Total Statutory
13%
20%
📌 Note:
Pension and NHF contributions are based on total monthly emoluments (basic salary + housing allowance + transport allowance). NHIS is based on basic salary. All statutory contributions are tax-deductible.
🧾 VAT Calculator (Value Added Tax)
Standard rate: 7.5% (effective Feb 2020). Exempt: basic food items (unprocessed), medical services, educational services, books, all export services, and petroleum products at the pump.
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📌 VAT-Exempt Goods & Services:
All unprocessed basic food items (grains, fruits, vegetables, fresh meat, fish), medical and pharmaceutical services, educational services provided by accredited institutions, books and newspapers, all export services, and petroleum products sold at retail pumps.
👥 Pension, NHF & NHIS Calculator
Calculate mandatory statutory deductions under the Contributory Pension Scheme (CPS), National Housing Fund (NHF), and National Health Insurance Scheme (NHIS).
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📌 Contributory Pension Scheme (CPS):
Both employer and employee must contribute a minimum of 10% and 8% respectively of total monthly emoluments. Emoluments = basic salary + housing allowance + transport allowance. The NHF requires employees to contribute 2.5% of basic salary. NHIS contributions vary: 2.5% employee, 10% employer of basic salary.
🍺 Excise Duties Calculator
Nigerian excise duties on alcoholic beverages, tobacco, petroleum products, and sugar-sweetened beverages. Rates per the Nigeria Finance Act.
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📌 Excise Duties in Nigeria:
Excise duties are levied under the Customs and Excise Duties Act and the Nigeria Finance Act. Sugar-sweetened beverages attract a 10% ad valorem excise. Tobacco products are subject to both specific and ad valorem excise. Petroleum levies fund the Road Reconstruction and Maintenance Fund. Rates shown are approximate; consult FIRS for current rates.