Consolidated Relief Allowance (CRA)
The CRA was the main personal income tax relief in Nigeria before 2026, calculated as the higher of ₦200,000 or 1% of gross income, plus 20% of gross income. Under the tax rules effective 2026 it has been replaced by rent relief.
How it worked
For a gross income of ₦6,000,000: the higher of ₦200,000 or 1% (₦60,000) is ₦200,000, plus 20% of gross (₦1,200,000), giving a CRA of ₦1,400,000 deducted before the bands applied.
Why you still see it everywhere
Most Nigerian tax content, calculators and salary articles online still describe the CRA, because it applied for years. If a calculator applies CRA to a 2026 salary, it is using superseded rules and its figures will be wrong.
What applies now
Rent relief: 20% of annual rent paid, capped at ₦500,000. Pension, NHF and NHIS contributions remain deductible.
Our tax calculator uses the 2026 rules.
More Nigerian tax terms
- Company Income Tax (CIT)
- Development Levy
- Direct assessment
- FIRS (Federal Inland Revenue Service)
- Input VAT
- Minimum wage tax exemption
- Output VAT
- PAYE (Pay-As-You-Earn)
- Personal Income Tax (PIT)
- Rent relief
- Tax Clearance Certificate (TCC)
- Tax Identification Number (TIN)
- Value Added Tax (VAT)
- Withholding Tax (WHT)
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