Tax Tips

Practical guidance to help Nigerian taxpayers understand, plan, and manage their taxes effectively.

General Tax Tips

  • •Always calculate your annual income, not just monthly earnings.
  • •Know your tax bracket before making financial plans.
  • •Nigeria uses a progressive tax system — income is taxed in layers.
  • •Confirm deductions on your payslip or receipts regularly.

For Salary Earners (PAYE)

  • •Your employer deducts and remits PAYE on your behalf.
  • •Request an annual tax deduction summary from your employer.
  • •Ensure pension and NHF deductions are correctly applied.
  • •Keep copies of payslips and employment letters.

For Self-Employed & Freelancers

  • •Register with your State Internal Revenue Service.
  • •Declare income honestly to avoid penalties.
  • •Set aside tax monthly to avoid bulk payments.
  • •Keep records of business expenses and invoices.

Common Mistakes to Avoid

  • •Ignoring tax because income is irregular.
  • •Assuming small businesses are tax-free.
  • •Failing to file annual tax returns.
  • •Estimating tax instead of calculating it properly.

Record Keeping Tips

  • •Save bank statements and invoices.
  • •Keep digital copies of receipts.
  • •Track income and expenses monthly.
  • •Use simple accounting or budgeting tools.

Helpful Resources

  • • Federal Inland Revenue Service (FIRS)
  • • Your State Internal Revenue Service (e.g. LIRS)
  • • Registered tax consultants

Want to know how much tax applies to your income?

Head back to the calculator and get an instant estimate.

This information is for educational purposes only and does not replace professional tax advice. Always consult FIRS or a licensed tax consultant.