Personal Income Tax Calculator Nigeria 2025 — All Reliefs
Calculate your Nigerian Personal Income Tax with all reliefs: CRA, pension, NHF, and life insurance. Updated for NTA 2025 with step-by-step breakdown.
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= ₦500,000 / month ₦
Typically 80% of gross income ₦
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Not deductible for PAYE employees Quick presets:
₦0
Annual PIT
₦0
Monthly PIT
0%
Effective Rate
₦0
Chargeable Income
Step-by-Step Computation
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Tax Band Breakdown
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How Personal Income Tax Works in Nigeria
Personal Income Tax (PIT) in Nigeria is governed by the Personal Income Tax Act (PITA) as amended by the Nigeria Tax Act 2025. It applies to income earned by individuals including salaries, wages, business profits, rents, and investment income.
The tax is computed on Chargeable Income — which is your gross income after all allowable deductions and reliefs. The Consolidated Relief Allowance (CRA) is the primary relief available to all taxpayers.
Frequently Asked Questions
What reliefs can I claim to reduce my Personal Income Tax in Nigeria?
Under the NTA 2025, you can claim: Consolidated Relief Allowance (CRA = higher of ₦200,000 or 1% of gross + 20% of gross), employee pension contribution (8% of Basic+Housing+Transport), NHF contribution (2.5% of monthly basic × 12), life insurance premiums paid, and other approved deductions. The CRA alone reduces most workers' taxable income by over 20%.
How is Chargeable Income calculated for PIT?
Chargeable Income = Gross Annual Income − Pension Contribution − NHF Contribution − Life Insurance Premium − CRA. All these deductions are applied before the progressive tax bands are used to calculate your actual tax liability.
Is rent deductible for Personal Income Tax purposes?
Rent paid is generally not deductible for employed individuals under PAYE. However, for self-employed individuals, rent paid for business premises may be deductible as a business expense. This calculator includes rent as a reference input only.
What are the 2025/2026 PIT tax bands in Nigeria?
0% on first ₦800,000; 15% on next ₦2,200,000; 18% on next ₦9,000,000; 21% on next ₦13,000,000; 23% on next ₦25,000,000; 25% on income above ₦50,000,000 per annum.
Who pays Personal Income Tax (PIT) vs Company Income Tax (CIT)?
Individuals, including employees, sole traders, and partners in partnerships, pay Personal Income Tax (PIT). Limited liability companies pay Company Income Tax (CIT). Self-employed professionals such as doctors, lawyers, and consultants pay PIT on their personal earnings even if they run a business.