- The bands apply to taxable income after the reliefs the Act allows (section 30), not to gross salary.
- They apply to income from 1 January 2026.
- Section 58 excludes an individual earning the Minimum Wage in line with the Minimum Wage Act.
Reliefs the Act allows under section 30 include rent relief of 20% of annual rent paid, up to a maximum of ₦500,000, provided the individual accurately declares the rent paid; and contributions to the National Housing Fund, the National Health Insurance Scheme and under the Pension Reform Act; interest on a loan for an owner-occupied house; and life insurance or deferred annuity premiums.
| Taxable income band | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 | 15% |
| Next ₦9,000,000 | 18% |
| Next ₦13,000,000 | 21% |
| Next ₦25,000,000 | 23% |
| Above ₦50,000,000 | 25% |
Source: Nigeria Tax Act 2025, section 58 and the Fourth Schedule.
- ₦3,000,000: ₦800,000 at 0% is ₦0; ₦2,200,000 at 15% is ₦330,000; tax ₦330,000 a year.
- ₦12,000,000: ₦330,000 plus ₦9,000,000 at 18% (₦1,620,000) is ₦1,950,000 a year.
- ₦25,000,000: ₦1,950,000 plus ₦13,000,000 at 21% (₦2,730,000) is ₦4,680,000 a year.
These are examples of the method, not advice for your situation.