Updated for 2026
Nigerian Tax Brackets 2026: Complete Reference
All Nigerian tax rates under the Nigeria Tax Act 2025, effective January 1, 2026. Personal income tax, company tax, VAT, and more.
Personal Income Tax (PIT) Brackets 2026
| Annual Taxable Income | Tax Rate | Cumulative Tax |
|---|---|---|
| ₦0 - ₦800,000 | 0% | ₦0 |
| ₦800,001 - ₦3,000,000 | 15% | ₦330,000 |
| ₦3,000,001 - ₦12,000,000 | 18% | ₦1,950,000 |
| ₦12,000,001 - ₦25,000,000 | 21% | ₦4,680,000 |
| ₦25,000,001 - ₦50,000,000 | 23% | ₦10,430,000 |
| Above ₦50,000,000 | 25% | Variable |
First ₦800,000 is tax-free — a significant increase from the old ₦300,000 threshold.
Company Income Tax (CIT) Rates 2026
| Company Category | Annual Turnover | CIT Rate | Notes |
|---|---|---|---|
| Small Companies | ≤ ₦50 million | 0% | Also exempt from VAT charging if assets ≤₦250M |
| Medium Companies | ₦50M - ₦100M | 20% | Reduced rate |
| Large Companies | > ₦100 million | 30% | Standard rate |
Other Nigerian Tax Rates
| Tax Type | Rate | Applies To |
|---|---|---|
| Value Added Tax (VAT) | 7.5% | On goods and services |
| Capital Gains Tax (CGT) | 10% | On disposal of assets |
| Development Levy | ₦600/year | Fixed annual amount |
| Tertiary Education Tax | 2.5% | On assessable profit (companies) |
| NASENI Levy | 0.25% | On profit before tax (companies) |
Effective Tax Rate by Income Level
Your effective tax rate is always lower than your marginal rate due to graduated brackets.
| Annual Income | Annual Tax | Effective Rate |
|---|---|---|
| ₦1,000,000 | ₦30,000 | 3.0% |
| ₦2,000,000 | ₦180,000 | 9.0% |
| ₦5,000,000 | ₦690,000 | 13.8% |
| ₦10,000,000 | ₦1,590,000 | 15.9% |
| ₦20,000,000 | ₦3,690,000 | 18.5% |
| ₦50,000,000 | ₦10,430,000 | 20.9% |
These examples assume standard deductions (8% pension). Actual tax may vary based on individual circumstances.