Nigeria has introduced a personal income tax calculator to promote fairness, with exemptions for low-income earners effective January 2026.
The Nigerian government has launched a personal income tax calculator aimed at improving transparency and protecting low-income earners under the recently signed Nigerian Tax Act 2025. President Bola Tinubu said on Thursday that “a fair tax system must never punish poverty or weigh down the most vulnerable.” He explained that from January 2026, “we have lifted this burden and created a path of equity, fairness, and true redistribution in our economy.”
The calculator allows users to input details such as gross annual income, pension, health contributions, insurance, and rent to compare liabilities under both the old and new laws. According to government checks, individuals earning N108,000 monthly or less, and households with a combined income of N250,000 or below, will be exempted from tax.
Taiwo Oyedele, head of the Presidential Fiscal Policy and Tax Reforms Committee, said the primary goal is not to raise revenue but to stimulate economic activity while easing burdens on small businesses and the informal sector.