Frequently AskedQuestions

Personal Income Tax (PIT) is a tax levied on the income of individuals in Nigeria. It's administered by the Federal Inland Revenue Service (FIRS) and State Internal Revenue Services. The tax applies to employment income, business profits, dividends, interest, and other sources of income.

For individuals and sole proprietors, annual PIT returns are generally due by 31 March of the following year. PAYE employers must file employer returns (Form H1) by 31 January and remit monthly PAYE deductions by the 10th of the following month. Deadlines can vary by state, so confirm with your State IRS.

Nigeria uses a progressive tax system under the 2025/2026 Finance Act. The first ₦800,000 of taxable income is tax-free (0%). The next ₦2.2 million (₦800k to ₦3M) is taxed at 15%, the next ₦9 million (₦3M to ₦12M) at 18%, the next ₦13 million (₦12M to ₦25M) at 21%, the next ₦25 million (₦25M to ₦50M) at 23%, and anything above ₦50 million is taxed at 25%. These rates apply to chargeable income after allowable deductions and reliefs.

Late filing attracts penalties and interest. Typical penalties include a fixed charge for late filing plus daily or monthly interest on unpaid tax. The exact amounts can vary by state. Filing and paying on time avoids these charges and audit exposure.

PAYE (Pay-As-You-Earn) is a system where employers deduct tax from employees' salaries before payment. The employer calculates the tax based on the employee's gross income, applies allowable deductions and reliefs, and remits the tax to the relevant tax authority monthly. This ensures tax is collected throughout the year rather than in a lump sum.

Direct Assessment applies to self-employed individuals and businesses without PAYE payroll. You compute your income, deduct allowable expenses and reliefs, and pay PIT based on the progressive bands. You must file annually and may need to make advance or provisional payments depending on your state.

Allowable deductions include: Consolidated Relief Allowance (CRA) which is the higher of ₦200,000 or 1% of gross income plus 20% of gross income; Pension contributions (8% employee + 10% employer); National Housing Fund (NHF) - 2.5% of basic salary; National Health Insurance Scheme (NHIS) contributions; Life assurance premiums; and rent relief (20% of annual rent, capped at ₦500,000). These reduce your chargeable income and ultimately your tax liability. Gross income up to ₦1.2 million may be fully exempt from minimum tax.

Under the 2025/2026 Finance Act, the first ₦800,000 of taxable income (after deductions and reliefs) is completely tax-free. This means if your gross annual income is around ₦1.2 million or less (considering CRA deductions), you may pay zero tax. This policy aims to provide relief for low-income earners.

Rent relief allows you to claim 20% of your annual rent paid, with a maximum cap of ₦500,000. For example, if you paid ₦2 million in rent, you can claim ₦400,000 as relief. If you paid ₦3 million, you're still limited to ₦500,000. You'll need proof of rent payments (receipts or bank statements) to claim this relief when filing your tax return.

Under the 2025/2026 Finance Act, small companies with annual turnover of ₦100 million or less pay 0% Corporate Income Tax. Medium-sized companies (turnover above ₦100M but not exceeding ₦1 billion) pay 20%, while large companies (turnover above ₦1 billion) pay 25%. This is a significant incentive for small business growth in Nigeria.

Keep receipts/invoices for deductible expenses (pension, NHF, NHIS, life insurance) and business expenses if self-employed. For Limited Companies, supporting documents are often mandatory; for individuals and business names they may be optional but strongly recommended for audits.

Yes, even if you're on PAYE, you may still need to file an annual tax return, especially if you have additional sources of income beyond your employment, or if your total income exceeds certain thresholds. It's best to consult with a tax professional or check with your State Internal Revenue Service for specific requirements.

You can obtain a TIN via the Joint Tax Board (JTB) portal or your State IRS. To validate an existing TIN, you can use the FIRS or JTB verification services. In TaxBook, add your TIN in your profile before filing.

TaxBook integrates with Remita to generate Remita Retrieval Reference (RRR) numbers. Once you calculate your tax using our calculator, you can generate an RRR, which you can use to pay through any Remita-enabled channel including banks, online banking, or Remita's website. After payment, the status is automatically updated in your TaxBook history.

If you already have an RRR or evidence of payment, include the RRR when filing or when you generate payment in TaxBook so we can reconcile the payment to your filing.

Self-employed individuals and freelancers are required to register with their State Internal Revenue Service, keep proper records of income and expenses, and file annual tax returns. You'll need to calculate your taxable income (gross income minus allowable business expenses) and pay tax based on the same progressive bands. See our TIN Registration guide for how to register with your State IRS and get/validate your TIN. TaxBook can help you calculate your tax liability accurately.

VAT is separate from Personal Income Tax. If your business makes taxable supplies and meets the registration threshold, you must register for VAT with FIRS, charge VAT on eligible sales, and file monthly VAT returns. VAT is not part of PIT calculations.

After you calculate your tax, you can upload receipts/records (e.g., expense receipts) and attach them when filing. Limited Companies are typically required to provide supporting documents. Receipts must match the tax year of the filing.

If a filing is in draft or pending submission, you can update it and resubmit. Once acknowledged/approved by the tax authority, amendments may require a formal amendment process with your tax office.

Yes, TaxBook is designed with security in mind. We use encryption for data transmission, secure authentication, and follow best practices for data protection. Your tax calculations and payment history are stored securely and are only accessible to you. We never share your information with third parties without your consent.

Several exemptions exist: Pension gratuities up to ₦50 million are exempt from tax; gains from the sale of your primary residence, personal vehicles, and government securities are exempt from Capital Gains Tax; small companies (≤₦100M turnover) pay 0% CIT; basic food items, educational materials, healthcare services, and baby products are VAT-exempt; and manufacturers, agricultural businesses, and small companies may qualify for Withholding Tax exemptions.

CRA is calculated as the higher of ₦200,000 OR 1% of your gross income, PLUS 20% of your gross income. For example, if your gross income is ₦5 million: 1% = ₦50,000 (less than ₦200,000, so we use ₦200,000) + 20% = ₦1,000,000. Total CRA = ₦1,200,000. TaxBook automatically calculates this for you.

Gross income is your total earnings before any deductions. Taxable income (chargeable income) is what remains after subtracting all allowable reliefs and deductions such as CRA, pension, NHF, NHIS, rent relief, and life insurance. Tax is calculated on the taxable income, not the gross income.

Yes! TaxBook supports Personal Income Tax calculations with our Personal Tax Calculator, and Corporate Income Tax with our Business Tax Calculator. We also provide tools for PAYE calculations, salary breakdowns, year-over-year tax comparisons, and comprehensive tax planning tips to help both individuals and businesses stay compliant.

If you have income from employment (PAYE), business activities, investments, rentals, or other sources, you must declare all of them on your annual tax return. Your employer will deduct PAYE from employment income, but you'll need to account for other income sources when filing. TaxBook's calculator can help you compute the total tax liability across all income sources.

Visit the Tax Tips section in your TaxBook dashboard. We provide personalized recommendations on maximizing deductions, claiming all eligible reliefs, optimizing your pension contributions, leveraging rent relief, and strategic tax planning. Our tips are updated regularly to reflect the latest tax laws and best practices.

Yes! Use our Year Comparison tool in the dashboard to analyze your tax calculations across multiple years. This helps you track trends, understand how tax reforms affect you, plan for future years, and make informed financial decisions based on historical data.

Our Tax Calendar shows all important Nigerian tax deadlines throughout the year including PAYE remittance dates (10th of each month), annual return deadlines (March 31), VAT filing dates, WHT remittance schedules, and other key compliance dates. Set reminders to never miss a deadline and avoid penalties.

After calculating your tax with TaxBook, you can export your calculation as a PDF report which includes a detailed breakdown of your gross income, all deductions and reliefs, taxable income, and final tax liability. You can also export your calculation history to CSV or JSON format for spreadsheet analysis or accounting software integration. All exports include Nigerian branding and are suitable as supporting documentation when filing your return with your State IRS or FIRS.

Yes! After calculating your tax, click the 'Share' button to generate a public shareable link. Anyone with this link can view your calculation details, including all breakdowns and deductions, but cannot edit it. This is perfect for collaborating with your accountant, tax lawyer, or employer about your tax situation. The link remains valid for easy future reference.

TaxBook includes powerful keyboard shortcuts to speed up your workflow: Press Ctrl+Enter (Cmd+Enter on Mac) to calculate tax, Ctrl+K to clear the form, Ctrl+S to save your calculation, Ctrl+D to download PDF, and Ctrl+/ to view all available shortcuts. Press Esc to close dialogs. You can see all shortcuts anytime by clicking the keyboard icon in the calculator or pressing Ctrl+/.

Yes! TaxBook offers both light and dark themes. Click the sun/moon icon in the navigation bar to toggle between themes. Your preference is automatically saved and will be remembered on your next visit. Both themes maintain the Nigerian Green color scheme for consistent branding.

Yes! Use our Payslip Parser feature to upload your payslip (PDF, PNG, or JPG format), and TaxBook will automatically extract key information like gross income, pension contributions, NHF, NHIS, and life insurance premiums. This eliminates manual data entry and reduces errors. Just upload, review the extracted data, and click to import it directly into the calculator.

Go to your Profile settings and look for Email Preferences. You can enable monthly, quarterly, or annual email reports that automatically summarize your tax calculations, including total calculations made, average tax paid, and trends over time. This helps you stay on top of your tax planning and ensures you never lose track of important calculations.

Absolutely! Visit your Dashboard and use the Multi-Year Comparison feature to see interactive charts comparing your tax liability, gross income, and effective tax rate across different years. This helps you understand how tax reforms impact you, identify trends in your income and tax payments, and make better financial decisions based on historical data.

After each tax calculation, TaxBook analyzes your deductions and provides personalized recommendations to help you reduce your tax liability legally. For example, if you're not maximizing pension contributions, we'll show you the potential tax savings. If you haven't claimed rent relief, we'll remind you. These smart suggestions help ensure you're taking advantage of all available tax benefits.

TaxBook's calculator is built on the official Nigerian tax laws as per the 2025/2026 Finance Act. We implement the exact progressive tax bands (0% up to ₦800k, 15% up to ₦3M, 18% up to ₦12M, 21% up to ₦25M, 23% up to ₦50M, and 25% above ₦50M), apply all standard reliefs correctly (CRA, pension, NHF, NHIS, rent, life insurance), and update our calculations whenever tax laws change. However, always consult a tax professional for complex situations or unusual circumstances.

TaxBook is an independent tax calculation and planning platform. While we're not officially endorsed by FIRS or any State IRS, we strictly follow all official Nigerian tax regulations and laws. Our calculations are based on publicly available tax laws, and we regularly update our platform to reflect the latest Finance Acts and tax policies. We also provide direct links to official FIRS and State IRS portals for actual tax filings.

The Personal Tax Calculator is designed for individuals calculating Personal Income Tax (PIT) based on employment or self-employment income. It uses progressive tax bands and includes individual reliefs. The Business Tax Calculator is for companies calculating Corporate Income Tax (CIT) based on business turnover - 0% for small companies (≤₦100M), 20% for medium companies (₦100M-₦1B), and 25% for large companies (>₦1B). Both calculators are designed to meet specific tax obligations.

Withholding Tax is a separate obligation from Personal Income Tax, typically deducted at source when you provide services or goods. While TaxBook focuses on PIT and CIT calculations, we provide comprehensive guides on WHT rates, compliance requirements, and when it applies. Visit our Withholding Tax guide for detailed information, or use the calculator to see how WHT affects your net income when planning your finances.

TaxBook is currently a web-based application that requires an internet connection. However, once you've calculated your tax, you can download PDF reports or export data to CSV/JSON for offline access. We recommend saving your calculations regularly, especially if you'll need to reference them without internet access.

We monitor changes to Nigerian tax laws continuously. Whenever the Finance Act is updated (typically annually), or when FIRS or State IRS announce policy changes, we update TaxBook within days to reflect the new rates, bands, exemptions, and regulations. We also announce major updates through email notifications (if you've enabled them) and on our platform. Our current calculations reflect the 2025/2026 Finance Act provisions.

First, double-check that you've entered all your information correctly, including gross income and all deductions. Review the breakdown to see exactly how your tax was calculated. If you still believe there's an error, contact our support or reach out to a tax lawyer through our platform. Keep in mind that different states may have slight variations in how certain reliefs are applied, and unusual income situations may require professional tax advice.

No. TaxBook does not store your credit card or bank account details. When you make payments through Remita, all payment processing is handled securely by Remita's platform. We only store the Remita RRR (Retrieval Reference) and payment status to help you track your tax payments. Your actual payment details remain exclusively with the payment processor.

Yes. You have full control over your data. You can delete your account and all associated data at any time from your Profile settings. Once deleted, all your calculations, receipts, and personal information will be permanently removed from our servers. Before deleting, we recommend downloading your calculation history if you need it for your records.

Use our Tax Calendar feature to see all important Nigerian tax deadlines. Enable email notifications in your Profile settings to receive reminders for upcoming deadlines like monthly PAYE remittances (10th of each month), annual tax returns (March 31), VAT filing dates, and other compliance deadlines. You can also set up quarterly or annual email reports to review your tax status regularly.

Yes. While TaxBook helps you calculate your tax liability, you must still register with your State Internal Revenue Service to obtain a Tax Identification Number (TIN) and file your returns. Visit our TIN Registration guide for step-by-step instructions on how to register with your State IRS. TaxBook complements the official filing process by providing accurate calculations and proper documentation.

If you're a Nigerian resident working remotely for foreign companies, you're still subject to Nigerian Personal Income Tax on your worldwide income. Convert your foreign currency earnings to Naira using the official exchange rate (usually the CBN rate on the date of receipt), then use TaxBook's calculator with the Naira amount. You may be able to claim certain reliefs depending on your situation - consult with a tax professional for complex international income scenarios.