Fairness & Progressivity is the calculator illustrates how the new tax laws protect low-income earners, promote progressivity, and simplify tax compliance .
Transparency & Trust is allowing side‑by‑side comparisons between the current and upcoming tax systems, the tool aims to build public confidence and ease understanding of the reforms .
Part of Broader Reforms is initiative complements four newly signed tax reform laws:
Nigeria Tax (Fair Taxation) Law
Nigeria Tax Administration Law
Joint Revenue Board (Establishment) Law
Nigeria Revenue Service (Establishment) Law
These reforms collectively aim to streamline Nigeria’s tax framework and are slated to come into force on January 1, 2026 .
How It Works
1. Visit the calculator at: fiscalreforms.ng/index.php/pit-calculator.
2. Input details:
Gross annual income
Annual contributions (NHF, NHIS, Pension)
Interest on owner-occupied house loans
Life insurance premiums
Annual rent
3. Calculate: Click “Calculate PAYE Tax Comparison” to view your tax under both the current and new regimes .
4. See results: The output includes a comparison—for example, someone earning ₦200,000 monthly (₦2.4M annually) would save ₦766.67 in tax per month under the new system, translating into increased take-home pay .
Broader Context of the Tax Reforms
Tax Rates Overhauled:
The new law introduces a more progressive tax schedule starting with 0% for annual incomes below ₦800,000, followed by brackets up to 25% for incomes above ₦50 million .
Revenue Authority Restructured:
The Federal Inland Revenue Service (FIRS) has been replaced by the Nigeria Revenue Service (NRS), aimed at consolidating tax collection and increasing efficiency .
In Summary
What’s new: A user-friendly tool to compare current vs. upcoming tax liabilities.
Effective from: January 1, 2026.
Goal: Promote fairness, simplicity, and transparency especially for low-income Nigerians.
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