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✔ 2016 Tax Rates, Thresholds and Allowance for Individuals, Companies, Trusts and Small Business Corporations (SBC) in Nigeria
You are viewing the income tax rates, thresholds and allowances for the 2016 Tax Year in Nigeria. If you are looking for an alternative tax year, please select one below.
2014 - 2015 Tax Tables 2015 - 2016 Tax Tables 2017 - 2018 Tax Tables 2018 - 2019 Tax Tables
The following tax rates, thresholds and allowances are valid for the 2015 - 2016 Tax Year in Nigeria which is known as the 2016 Tax Year. The Tax Year runs from 1 January 2015 - 31 December 2016
| Taxable Income (R) | Percentage rate of tax due within the threshold |
|---|---|
| ₦0.00 - ₦600,000.00 | 11% of income within the threshold |
| ₦600,000.00 - ₦1,100,000.00 | 15% of income within the threshold + ₦54,000.00 |
| ₦1,100,000.00 - ₦1,600,000.00 | 19% of income within the threshold + ₦108,000.00 |
| ₦1,600,000.00 - ₦3,200,000.00 | 21% of income within the threshold + ₦170,000.00 |
| ₦3,200,000.00 - ₦0.00 | 24% of income within the threshold + ₦431,000.00 |
| ₦0.00 - ₦0.00 | % of income within the threshold + ₦0.00 |
| Corporate Rate | Individual / Partnership Rate | Withholding Type |
| 10% | 10% | Rent |
| 5% | 5% | Construction |
| 10% | 10% | Dividend |
| 10% | 5% | Royalties |
| 10% | 5% | Commision |
| 10% | 5% | Professional Fee |
| 10% | 5% | Techical |
| 10% | 5% | Consultancy Fees |
| 2.5% | Nigerian Social Investment Trust Fund(NSITF) Employee rate |
| ₦1,200.00 | Nigerian Social Investment Trust Fund(NSITF) Employee Cap |
| 5% | Nigerian Social Investment Trust Fund(NSITF) Employer rate |
| 30% | Corporation tax rate |
| 20% | Corporation tax reduced rate for manuafacturers wholly engaged in export |
| 5 Years | Corporation tax reduced rate qualification period in years of operation |
| ₦1,000,000.00 | Corporation tax reduced rate maximum turnover |
| 10% | Maximum leave allowance percentage rate |
| ₦150,000.00 | Maximum Housing Allowance |
| ₦20,000.00 | Maximum Transport Allowance |
| ₦10,000.00 | Maximum Utility Allowances |
| ₦6,000.00 | Maximum Meal and Entertainment Allowances per person |
| ₦2,500.00 | Child Allowance per child |
| 4 | Maximum number of children for child allowance |
| ₦2,000.00 | Dependent Relative Allowance (DRA) |
| 2 | Maximum numer of dependants for DRA |
| 2% | Education tax due on all company profits |
| 10% | Capital Gains Tax Rate |
Income Tax Tables are used to calculated individual salaries, apply tax deductions and tax credits to produce a net take home pay (your income after deductions). Below is an example salary after tax deductions based on the 2015 - 2016 tax tables.
If you are an employee in Nigeria your income tax is deducted via Pay As You Earn (PAYE) from your salary by your employer, your employer then pays the income tax directly to the tax authority on your behalf. If you are self-employed in Nigeria, you must work out your own tax deductions by completing a self-assessment tax return, you are then responsible for paying your income tax directly to the relevant tax authority yourself.
| Yearly | %1 | Salary/Tax Component |
|---|---|---|
| ₦152,900.00 | 100.00% | Gross Income |
| ₦3,058.00 | 2.00% | Housing Allowance |
| ₦4,587.00 | 3.00% | Utility Allowances |
| ₦6,000.00 | 3.92% | Meal & Ents. Allowance |
| ₦7,500.00 | 4.91% | Child deduction |
| ₦4,000.00 | 2.62% | Dependant deduction |
| ₦4,587.00 | 3.00% | Leave Allowance |
| ₦9,174.00 | 6.00% | Pension Contributions |
| ₦113,994.00 | 74.55% | Taxable income |
| ₦7,979.58 | 5.22% | PAYE |
| ₦46,885.58 | 30.66% | Total Deductions |
| ₦106,014.42 | 69.34% | Net Pay |
| ₦152,900.00 | 100.00% | Salary Package [Cost of Employee] |
1 Percentage expressed in relation to Gross Income [₦152,900.00].
If you have not encountered tax table information before or if you are unsure of how tax tables affect your income we recommend you read our guide: What are Tax Tables? Tax Tables explained.