Nigeria self-employed income tax calculator (2026)

How business income tax in Nigeria is calculated

Under the **Nigeria Tax Act 2025**, in force from 1 January 2026, an individual’s total income includes the assessable profit of a trade, business, profession or vocation, after capital allowances (s.28). Section 30 deducts the same eligible items as for an employee — pension contributions under the Pension Reform Act, National Housing Fund contributions and **rent relief** of 20% of rent up to **₦500,000** — and section 58 applies the Fourth Schedule: **0%** to ₦800,000, then **15%**, **18%**, **21%**, **23%** and **25%** above ₦50 million.

On **₦8 million of profit** with ₦1.5 million of rent, NHF is 2.5% (₦200,000) and rent relief ₦300,000, leaving ₦7.5 million chargeable. Tax is ₦330,000 + 18% of ₦4.5 million = **₦1,140,000**, so ₦6,660,000 is left after tax and NHF.

The National Housing Fund Act requires self-employed people to pay 2.5% of their income (s.10; its s.4, replaced by the Business Facilitation Act 2022, is reported to keep this compulsory); the page applies it to profit and lets you switch it off. The 0% rate for a **small company** (turnover up to ₦100 million and total fixed assets not exceeding ₦250 million) is for companies, not for someone trading in their own name. Losses, life-assurance premiums, mortgage interest, withholding tax credits and presumptive assessments are not modelled. Estimate, not tax advice.