In short: Four taxes reach a Nigerian small business, and each has one rate table. This page holds all of them as they apply from 1 January 2026 under the Nigeria Tax Act 2025 and the 2024 withholding regulations. Every rate here is the same constant the calculators on this site use, and the how we calculate page lists the source for each.
Personal income tax (PAYE)
Charged on annual chargeable income: gross pay less pension (8% of basic, housing and transport), rent relief (the lower of 20% of rent paid or ₦500,000), NHF, NHIS and life assurance.
| Annual chargeable income | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 (to ₦3m) | 15% |
| Next ₦9,000,000 (to ₦12m) | 18% |
| Next ₦13,000,000 (to ₦25m) | 21% |
| Next ₦25,000,000 (to ₦50m) | 23% |
| Above ₦50,000,000 | 25% |
Exemption: anyone earning at or below the national minimum wage of ₦70,000 a month pays no PAYE. Remittance: employers pay the state by the 10th of the following month. Try any salary in the PAYE calculator.
Company income tax
| Company | Rate |
|---|---|
| Small company: turnover ₦50m or less and fixed assets ₦250m or less (the Administration Act uses ₦100m turnover; the gap is unresolved) | 0% |
| Every other company | 30% |
| Non-resident company on Nigerian-source profits | 30% |
Professional services firms are excluded from small-company treatment regardless of size. Development levy: 4% of assessable profits, consolidating the former tertiary education tax and the NITDA, NASENI and Police Trust Fund levies; small and non-resident companies do not pay it. Filing: within six months of year end.
VAT
| Supply | Rate |
|---|---|
| Standard-rated goods and services | 7.5% |
| Basic food items, medical and pharmaceutical products, educational books and materials, tuition, residential rent, exports | 0% (zero-rated; input VAT recoverable) |
| Exempt supplies (certain financial and government services) | No VAT, no input recovery |
Businesses at or below the small-company turnover threshold do not register for or charge VAT. Returns are filed and paid by the 21st of the following month. Add or remove VAT in the VAT calculator.
Withholding tax
Rates from the Deduction of Tax at Source (Withholding) Regulations 2024, applied to payments by companies and government bodies. Recipients without a TIN are deducted at double the rate.
| Payment | Company recipient | Individual recipient |
|---|---|---|
| Professional, consultancy, management fees | 5% | 5% |
| Commission and brokerage | 5% | 5% |
| Supply of goods and materials | 2% | 2% |
| General (non-professional) services | 2% | 2% |
| Construction of roads, bridges, buildings | 2% | 2% |
| Other construction and installation | 5% | 5% |
| Rent, hire and lease | 10% | 10% |
| Dividends and interest | 10% | 10% |
| Royalties | 10% | 5% |
| Directors' fees | – | 15% |
Remit by the 21st of the following month. A small company paying a vendor with a TIN may skip deduction on payments below ₦2 million. Work any payment in the withholding tax calculator; the withholding tax guide explains who must deduct.
Capital gains
Under the Nigeria Tax Act 2025 the separate 10% capital gains tax is gone. Gains are taxed as income: at the company rate of 30% (0% for small companies) or at the individual bands above. Exemptions include an individual's owner-occupied residence, personal effects, and disposals of shares below the thresholds set in the Act (proceeds under ₦150 million in a year and gains under ₦10 million), with reinvestment relief above them.
Stamp duty and small charges
- Electronic transfer levy: ₦50 on electronic receipts of ₦10,000 and above into business accounts.
- Stamp duty on share capital and incorporation documents, paid at registration; see CAC registration cost.
- Stamp duty on leases, agreements and certain receipts at the rates in the Act's schedule.
Thresholds that decide which rates apply
| Threshold | Figure |
|---|---|
| Small company (0% CIT, no VAT, no levy) | ₦50m turnover under the Tax Act; ₦100m under the Administration Act |
| Minimum wage PAYE exemption | ₦70,000 a month |
| Rent relief cap | ₦500,000 a year |
| WHT small-company payer exemption | Payments under ₦2m to a vendor with a TIN |
| E-invoicing: large taxpayers | Above ₦5bn turnover, live since November 2025 |
| E-invoicing: medium taxpayers | ₦1bn to ₦5bn, live July 2026, enforced January 2027 |
| E-invoicing: everyone else | Below ₦1bn, live July 2027, enforced January 2028 |
Dates
| Obligation | Due |
|---|---|
| PAYE remittance | 10th of the following month |
| VAT return and payment | 21st of the following month |
| WHT return and remittance | 21st of the following month |
| Employer annual PAYE return | 31 January |
| Individual annual return | 31 March |
| Company income tax return | 6 months after year end |
The tax deadlines calendar has these as a year view.