Nigeria's tax rules changed on 1 January 2026. Under the Nigeria Tax Act 2025, the first ₦800,000 of taxable income is tax-free, rates rise in bands from 15% to 25%, the old Consolidated Relief Allowance is gone, and rent relief of up to ₦500,000 takes its place.
Many Nigerian freelancers earn in dollars from clients abroad, so exchange rates and transfer fees matter as much as tax. Tax residents are taxed on this worldwide income, so it belongs in the calculation too.
1. Income tax under the new law
Your 2026 tax with the new bands and rent relief, for salary or freelance income.
2. Getting paid from abroad
Platform fees and the real cost of converting dollars to naira.
- Freelance Platform Fee Calculator (Upwork, Fiverr, Freelancer.com)See what you actually take home from Upwork, Fiverr or Freelancer.com after the service fee, Connects and withdrawal costs, and what to charge to keep the amount you want.
- International Payment Cost CalculatorCompare two ways of getting paid from abroad, such as a wallet, a transfer service or a bank wire. See the fees, the exchange-rate markup and how much actually arrives.
3. Pricing and saving
Set a rate that covers tax and unbilled time, and set aside tax from each payment.
- Freelance Hourly Rate CalculatorWork out an hourly rate that actually covers your income goal, expenses, and self-employment tax, not just a guess.
- Freelancer Tax Set-Aside CalculatorWork out how much of each client payment to put aside for income tax and social contributions, in any country, so the tax bill is never a surprise.
Questions people ask
What changed for personal income tax in 2026?
New bands from 0% to 25%, a ₦800,000 tax-free band, removal of the Consolidated Relief Allowance, and a new rent relief of 20% of rent paid up to ₦500,000.
Are gifts and transfers from family taxed?
No. Under the new law, genuine gifts and personal transfers aren't taxable income. Payments for work, including from foreign clients, are.
Who collects personal income tax?
Generally the state internal revenue service where you live, through PAYE for employees or direct filing for the self-employed.