Nigeria has a progressive tax system with rates that vary by income level. Understanding these rates is crucial for tax planning and compliance.
Personal Income Tax Rates 2026
Personal Income Tax in Nigeria is calculated using a progressive scale. The current rates for 2026 are:
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₦0 - ₦300,000: Exempt from taxation
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₦300,001 - ₦600,000: 7% tax rate
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₦600,001 - ₦1,000,000: 11% tax rate
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Above ₦1,000,000: 21% tax rate
Corporate Income Tax
The standard corporate income tax rate in Nigeria is 30% of taxable profit. However, there are incentives and reduced rates for specific sectors.
Value Added Tax (VAT)
The standard VAT rate is 7.5%. Certain goods and services are exempt from VAT.