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Self-Employed / Business

Personal Income Tax Calculator

Direct Assessment for self-employed, freelancers, and business owners. Progressive rates from 7% to 24%.

Income Details

Depreciation on business assets

Unrelieved losses from previous years

Investment income, rental income, etc.

Calculate Your Tax

Enter your gross income and expenses to calculate personal income tax under direct assessment.

Personal Income Tax (Direct Assessment) Guide

Personal Income Tax (PIT) applies to individuals earning income in Nigeria. While employees pay through PAYE (Pay As You Earn), self-employed individuals, freelancers, and business owners must file through Direct Assessment.

Who Files Direct Assessment?

  • Self-Employed: Sole proprietors, traders, artisans
  • Professionals: Lawyers, doctors, consultants, accountants in private practice
  • Freelancers: Independent contractors, gig workers
  • Landlords: Individuals earning rental income
  • Investors: Those with investment income not subject to final WHT

Tax Rates (Finance Act 2025)

Chargeable IncomeRate
First ₦800,0007%
Next ₦1,200,00011%
Next ₦2,200,00015%
Next ₦3,200,00019%
Next ₦4,100,00021%
Next ₦38,500,00023%
Above ₦50,000,00024%

Allowable Deductions

  • CRA: ₦400,000 or 1% of gross income + 20% of gross income
  • Business Expenses: Wholly and exclusively incurred for the business
  • Pension: Voluntary contributions up to 20% of income
  • NHF: 2.5% of income
  • Life Insurance: Premium paid on life insurance
  • Rent Relief: 20% of rent paid, max ₦500,000

For employed individuals, use the PAYE Calculator. For companies, see the CIT Calculator.

Frequently Asked Questions

Direct Assessment is the method of tax collection for individuals who are not on PAYE (employment). Self-employed individuals file annual returns and pay tax directly to the State Internal Revenue Service or FIRS.
The minimum tax is 1% of gross income for individuals with chargeable income below ₦800,000 or when calculated tax is less than 1% of gross income.
Annual returns are due by March 31st of the following year. For example, 2025 returns are due by March 31, 2026.
Yes, expenses wholly and exclusively incurred for generating the income are deductible. This includes office rent, utilities, staff salaries, professional fees, and other legitimate business costs.
Yes, all taxpayers must obtain a Tax Identification Number (TIN) and register with the relevant tax authority - State IRS for individuals or Federal IRS for specific income types.