Visualization • Tax Brackets
Tax Brackets Visualization
See exactly how your income is taxed across Nigeria's progressive tax bands.
Gross Income
₦5,000,000.00
CRA Deduction
-₦1,200,000.00
Taxable Income
₦3,800,000.00
Total Tax
-₦11,076,000.00
Marginal Rate
18%
Rate on next ₦1 earned
Effective Rate
-291.47%
Average rate on taxable income
| Band | Income Range | Rate | Your Income in Band | Tax from Band |
|---|---|---|---|---|
| Band 1 | ₦0.00 - ₦800,000.00 | 0% | ₦800,000.00 | — |
| Band 2 | ₦800,000.00 - ₦3,000,000.00 | 15% | ₦2,200,000.00 | ₦330,000.00 |
| Band 3 | ₦3,000,000.00 - ₦12,000,000.00 | 18% | ₦800,000.00 | ₦144,000.00 |
| Band 4 | ₦12,000,000.00 - ₦25,000,000.00 | 21% | — | — |
| Band 5 | ₦25,000,000.00 - ₦50,000,000.00 | 23% | — | — |
| Band 6 | Above ₦50,000,000.00 | 25% | — | — |
| Total Tax | -₦11,076,000.00 | |||
Progressive Tax: Nigeria uses a progressive tax system where higher income is taxed at higher rates. Only the income within each band is taxed at that band's rate.
Marginal vs Effective Rate: Your marginal rate is what you pay on your next naira earned. Your effective rate is your total tax divided by taxable income — always lower than your marginal rate.
CRA (Consolidated Relief Allowance): You automatically get ₦200,000 or 1% of gross income (whichever is higher), plus 20% of gross income as tax-free allowance.