If you run a business name, trade or freelance, you pay personal income tax on your yearly profit using the 2026 bands: the first ₦800,000 is tax-free, then 15%, 18%, 21%, 23% and 25% on higher slices. Rent you pay for your home gives relief of 20%, up to ₦500,000. Enter your profit below.
How the Self-Employed Income Tax Calculator works
- Enter your business profit for the year: sales minus business costs.
- Add the rent you pay for your home, and any pension, health or life insurance you paid.
- The calculator takes off the reliefs and applies the 2026 bands.
- You see the tax for the year, a monthly amount to set aside and the band breakdown.
Worked example
A fashion designer makes ₦6,000,000 profit in a year and pays ₦1,200,000 rent for her flat.
Rent relief: 20% of ₦1,200,000 = ₦240,000
Taxable income: ₦5,760,000
Tax: first ₦800,000 at 0%, next ₦2.2m at 15% (₦330,000), the rest at 18% = ₦826,800
Set aside about ₦68,900 a month.
Common mistakes to avoid
- Paying tax on sales instead of profit
- Not claiming rent relief for your home
- Forgetting WHT credit notes from clients
Need a different calculator?
Profit, not sales
Tax is on profit: what you sell minus the costs of running the business, such as stock, rent for the shop, transport and staff. Keep receipts for those costs. Without records, the tax office may estimate your income, usually higher.
Filing as an individual
Self-employed people file with the tax authority of the state where they live. Withholding tax deducted by your clients counts towards what you owe, so keep those credit notes.
Frequently asked questions
Do I pay tax if I earn below ₦800,000 a year?
No. The first ₦800,000 of taxable income is taxed at 0%.
Is the old consolidated relief allowance gone?
Yes. From 2026 it is replaced by rent relief, plus deductions for pension, health and life insurance.
Are these the latest tax rules?
They follow the Nigeria Tax Act 2025, which took effect on 1 January 2026, and were last checked on the date shown on this page. Tax rules can change, so confirm big decisions with a tax adviser or the Nigeria Revenue Service.
Last updated: