Self-Employed Tax Nigeria 2026 — Calculate & File

How Self-Employed Tax Works in Nigeria

Unlike employees who have PAYE deducted automatically, self-employed Nigerians are responsible for calculating and paying their own tax. The formula is straightforward:

Step 1 — Calculate Your Gross Business Income

Add up all money received from your business during the tax year (January 1 – December 31). Include all payments — cash, bank transfer, Payoneer, Wise, or OPay.

Step 2 — Subtract Allowable Business Expenses

Cost of goods sold (if you sell products)
Staff salaries and contractor payments
Office rent, electricity, and utilities
Equipment, tools, and machinery
Professional and legal fees
Marketing, advertising, and website costs
Software subscriptions and digital tools
Bank charges and transfer fees

Step 3 — Apply Personal Reliefs

After business expenses, also apply the same personal reliefs as salaried workers — the ₦800,000 threshold and any pension contributions.

Step 4 — Apply the 2026 Tax Bands

The remaining figure is your taxable income. Apply the Nigeria 2026 tax bands to calculate the tax owed.

💡 WAKATAX handles Steps 3 and 4 automatically. Enter your net income after expenses, and the calculator applies all reliefs and bands to give you your exact figure.

Frequently Asked Questions

How does a self-employed person pay tax in Nigeria?

File an annual self-assessment return with your state Internal Revenue Service. Calculate your liability based on net business income after deductions, then pay via Remita or direct bank transfer. Quarterly instalment payments may also apply.

Is there a minimum income before I pay tax?

Under the Nigeria Tax Act 2026, the first ₦800,000 of taxable income is exempt. If your net income after all deductions is below ₦800,000, you owe no income tax — but may still need to file a nil return.

Can I deduct my own salary as a self-employed person?

No. As a sole trader, you cannot pay yourself a deductible salary. The full profit of the business is your income — and that profit is what you pay personal income tax on after allowable business expenses.

Know Your Exact Self-Employed Tax.

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