Guides · Compliance
Nigeria tax laws & recent updates
A readable summary for individuals navigating PIT, reliefs, and digital-asset rules — with a path to our Nigeria tax calculator.
What shapes Nigerian personal tax today
This page is a high-level overview for founders, freelancers, and crypto earners — not legal advice. Laws change; verify with official gazettes, FIRS notices, and a qualified adviser.
Individual taxation in Nigeria is primarily governed by the Personal Income Tax Act (consolidated and amended over time). Rates for resident individuals are usually applied to taxable income after statutory reliefs such as the Consolidated Relief Allowance (CRA) and allowable deductions (e.g. pension within limits).
Finance Acts typically adjust definitions, rates, exemptions, and compliance rules each year. Recent Acts have clarified digital economy and technology issues, including how certain digital-asset gains are assessed for tax purposes.
Policy and practice around digital assets continue to evolve. A commonly cited position under recent Finance Act provisions is a 10% charge on chargeable gains from digital assets (distinct from general employment or business income). Always confirm current FIRS guidance and your specific facts.
Federal taxes are administered by the Federal Inland Revenue Service (FIRS); states operate State Internal Revenue Services (SIRS) for state-level collections. Many filings and receipts flow through channels such as TaxPro-Max — PayPit is built to align with these expectations.
For many taxpayers, the Consolidated Relief Allowance is computed as the higher of ₦200,000 or 1% of gross annual income, plus 20% of gross annual income. That reduces taxable income before the progressive Sixth Schedule rates apply.
Gross income definitions were expanded under recent Finance Acts — especially relevant if you mix salary, freelance, and investment flows.
Sixth Schedule progressive bands (individuals)
Tax is applied slice-by-slice until taxable income is exhausted; any remainder above ₦3,200,000 is taxed at the top marginal rate.
| Band | Marginal rate |
|---|---|
| First ₦300,000 | 7% |
| Next ₦300,000 | 11% |
| Next ₦500,000 | 15% |
| Next ₦500,000 | 19% |
| Next ₦1,600,000 | 21% |
| Above ₦3,200,000 (remainder) | 24% |
Try the numbers
Use our free calculator for CRA, PIT bands, and a separate digital-asset line — then connect PayPit for filing-ready workflows.