Personal Income Tax (PIT)
PIT is the tax individuals in Nigeria pay on their income, charged on progressive bands from 0% to 25%. Employees pay it through PAYE deductions; the self-employed pay it by filing directly with their State Internal Revenue Service under direct assessment.
Who it applies to
Every individual earning income in Nigeria: employees, freelancers, consultants and sole proprietors. Residents are taxed on worldwide income; non-residents only on Nigerian-sourced income.
The 2026 bands
| Taxable income | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 | 15% |
| Next ₦9,000,000 | 18% |
| Next ₦13,000,000 | 21% |
| Next ₦25,000,000 | 23% |
| Above ₦50,000,000 | 25% |
Worked example
On ₦6,000,000 of taxable income: nothing on the first ₦800,000, ₦330,000 on the next ₦2,200,000 at 15%, and ₦540,000 on the remaining ₦3,000,000 at 18%. Total PIT: ₦870,000, an effective rate of 14.5%.
Because the bands are progressive, your effective rate is always lower than the top band you reach.
More Nigerian tax terms
- Company Income Tax (CIT)
- Consolidated Relief Allowance (CRA)
- Development Levy
- Direct assessment
- FIRS (Federal Inland Revenue Service)
- Input VAT
- Minimum wage tax exemption
- Output VAT
- PAYE (Pay-As-You-Earn)
- Rent relief
- Tax Clearance Certificate (TCC)
- Tax Identification Number (TIN)
- Value Added Tax (VAT)
- Withholding Tax (WHT)
Tax that works itself out
Claryeo turns your invoices and expenses into export-ready PIT, CIT and VAT summaries.
Join the waitlist