Here’s what the new Nigerian Tax Laws say about your Personal Income Tax (PIT), for salary earners.
On Revised Tax Bands and Rates
There are now new progressive rate structure with six bands:
This is on Annual income.
Individuals with annual income ₦800,000 or less are fully exempt from PIT.
Now let’s say you fall under the 3m band, you don’t pay 15% on the whole ₦3m.
You pay 0% on the first ₦800k, and then 15% only on the portion above ₦800k up to ₦3m.
Example: If You Earn ₦3,000,000 Annually
1.First ₦800,000 → 0% tax = ₦0
2.Remaining ₦2,200,000 (i.e. 3,000,000 – 800,000) → 15% tax = ₦330,000
Total annual PIT = ₦330,000
If you divide that by 12 months → about ₦27,500 per month deducted as PAYE (Pay-As-You-Earn).
Similarly, if you earned ₦5m, part would be taxed at 0%, part at 15%, and the portion above ₦3m at 18%.