How the tax calculator works

KeepAm's tax calculator uses the Nigeria Tax Act 2025 (effective January 1, 2026) to compute your personal income tax.

Taxable Income = Gross Income - Allowable Deductions
Tax Payable = Sum of tax at each bracket rate

Your total income from all taxable sources before any deductions.

Pension Contribution (typically 8%)

NHF (2.5% for employees)

NHIS (5% for employees)

Rent Relief (20% of annual rent, max ₦500,000)

Subtract total deductions from gross income.

The 2026 brackets are progressive - you only pay the higher rate on income above each threshold.

Example: If you earn ₦5,000,000:

First ₦800,000 @ 0% = ₦0

Next ₦2,200,000 (₦800,001 - ₦3,000,000) @ 15% = ₦330,000

Next ₦2,000,000 (₦3,000,001 - ₦5,000,000) @ 18% = ₦360,000

Total Tax: ₦690,000

KeepAm shows how much you save under the 2026 law compared to the previous tax structure.

How the Tax Calculator Works