Section 02 · Inputs
Claim what your business spent.
Deductions reduce your taxable base before reliefs apply. The bigger and more documentable your deductions, the lower your tax. Keep receipts.
₦
₦
₦
Rent relief is capped at ₦500,000/yr. Pension ≤ 10% of business profit is deductible.
Section 03 · Band by band
After deductions, the same bands apply.
Once business deductions and personal reliefs come off, your taxable base uses the same six progressive bands as salaried Nigerians.
Band 2 · 15%₦800k – ₦3.0M
₦330,000
Band 3 · 18%₦3.0M – ₦12M
₦180,000
Band 4 · 21%₦12M – ₦25M
not reached
+ 3 more bands above that only apply at higher incomes.
Total PAYEEffective rate 8.50%
₦510,000
Your summary
Gross income₦8,000,000
Deductions−₦2,000,000
Business profit₦6,000,000
Total tax−₦510,000
Net / year
₦5,490,000
Effective tax rate 6.38%
Section 04 · Methodology
The maths, uncovered.
Your total receipts from self-employment before any deductions — freelance invoices, consulting retainers, service fees, product sales.
Deduction checklist
What Nigerian self-employed can actually deduct.
Office rentShared workspace, home-office share
UtilitiesElectricity, internet, diesel
Professional feesAccountant, lawyer, platform fees
Equipment depreciationLaptop, camera, tools, vehicles
Transport & logisticsFuel, deliveries, client travel
MarketingAds, domain, printing
Materials & suppliesStock, raw materials