How TaxCalc.ng calculates Nigerian tax.
We publish the rule basis, formulas, assumptions, and reviewed sources behind our estimates, while keeping our internal engine design and safeguards private.
Last reviewed
29 April 2026
Transparency
See how your estimate is worked out.
What you can check
The tax rules we use, when we last reviewed them, the formulas applied, and sample calculations you can follow.
What this page is for
It helps you understand a TaxCalc.ng estimate. It is not tax advice and does not replace a review by your accountant or tax adviser.
PAYE calculation
How your PAYE estimate is built
TaxCalc starts with your annual pay, removes the reliefs and deductions you enter, then applies the 2026 PAYE rates to what is left.
2026 PAYE bands
Each rate applies only to the income that falls inside that band.
PAYE inputs
What can lower your PAYE
Rent paid
If you enter annual rent, TaxCalc applies the 2026 rent relief rule: 20% of rent paid, up to N500,000.
Workplace deductions
You can include pension, NHF, NHIS, life insurance, and qualifying home-loan interest where they apply to you.
Low-income exemption
If annual income is at the current minimum-wage level, the 2026 PAYE estimate shows no PAYE due.
Keep your records
TaxCalc uses the numbers you enter. Keep payslips, rent evidence, and contribution records for any formal review.
CIT formula
Company income tax
For company estimates, TaxCalc first checks whether the business qualifies for the small-company 0% CIT rate. If it does not qualify, the estimate uses the 30% company income tax rate and then checks any extra rules that may apply.
Who may qualify for 0% CIT?
A business may qualify when annual turnover is not above N50m, fixed assets are not above N250m, and the business is not in professional services.
What else may apply?
Some companies also have a 4% development levy on taxable profit. TaxCalc does not add this levy for small companies or non-resident companies.
When does the 15% check matter?
It mainly matters for multinational group companies and very large companies with turnover of N20bn or more. If the tax is below the required 15% level, TaxCalc shows the possible top-up.
Worked examples
Simple checks you can follow
PAYE example
A worker enters N9,600,000 annual pay, N576,000 pension, N192,000 NHF, and N2,500,000 annual rent. The rent relief reaches the N500,000 cap, then TaxCalc applies the 2026 PAYE bands to the remaining taxable income.
CIT example
A resident business with N50,000,000 turnover, N250,000,000 fixed assets, and no professional-services activity qualifies for small-company treatment. The estimate shows 0% CIT and no development levy, while larger-company checks stay separate.
Rule updates
How we track changes
When tax rules change, we update the calculator and keep a rule label with each result so estimates can be reviewed later.
PAYE rules in use
NTA2025-PAYE-2026-01-01
Applies the 2026 PAYE bands, rent relief cap, and supported deduction inputs.
Company tax rules in use
NTA2025-CIT-2026-01-01
Checks small-company status, company income tax, development levy, and the 15% large-company check.
2025 comparison rules
PITA-PAYE-2025-01-01
Used only when you compare an older PAYE result with the current 2026 estimate.
Sources
References we reviewed
TaxCalc.ng provides estimates for informational purposes only. It is not tax, financial, accounting, or legal advice. Always confirm your facts and records with a qualified professional or the relevant tax authority.
Questions
What this page does not replace
Does TaxCalc.ng publish its full tax engine source code?
No. We publish the legal basis, formulas, assumptions, source references, and examples so users can understand their estimates. We keep implementation details, security controls, and internal service design private.
Are TaxCalc.ng results final tax advice?
No. TaxCalc.ng provides estimates from the information supplied and the public rules reviewed. You should confirm your facts with a qualified tax professional or the relevant tax authority.