Business Tax Calculator

Enter Your Business Details

Business Type *

Sole Proprietor

Individual business

Partnership

Multiple partners

Limited Company

Registered company

Annual Turnover/Revenue *

₦

Total revenue for the year before expenses

Cost of Goods Sold (COGS)

₦

Direct costs to produce goods/services sold

Operating Expenses

₦

Salaries, rent, utilities, marketing, etc.

Depreciation & Amortization

₦

Annual depreciation on assets

I am VAT Registered

Check this if your annual turnover exceeds ₦25 million and you're registered for VAT

Try an Example

Click any example to auto-fill the calculator with sample data

Important Note

This calculator provides estimates based on the NEW 2026 Nigerian tax laws. Actual tax liability may vary. Consult a tax professional for accurate assessment. We do not store your business data.

Your Results Will Appear Here

Enter your business details and click "Calculate Business Tax" to see your breakdown.

Tax Calculation Results

Business Summary

Annual Turnover ₦0

Total Expenses ₦0

Net Profit ₦0

Company Income Tax (CIT)

Business Category -

Applicable Rate -

CIT Amount ₦0

Total Annual Tax ₦0

CIT + Development Levy + VAT

Net Profit After Tax ₦0

Available for distribution/reinvestment

2026 Tax Rates

Small (< ₦50M) 0% CIT

Large (≥ ₦50M) 30% CIT

Development Levy 4%

VAT Rate

Standard Rate 7.5%

Understanding Your Business Tax

What These Taxes Mean:

Company Income Tax (CIT)

Tax on your profit. Small businesses (under ₦50M turnover) pay 0%! Large businesses (₦50M+) pay 30%.

Development Levy (4%)

NEW in 2026! This replaces old education taxes. Only paid by businesses with ₦50M+ turnover. Goes to infrastructure development.

VAT (7.5%)

Collected from customers and paid to government. You can claim back VAT on business expenses.

Real Business Examples:

Ada's Fashion Shop - ₦15M yearly turnover

Profit: ₦5M | CIT: ₦0 | Development Levy: ₦0

Small business - NO TAX! Just keep proper records and file returns.

Chidi's Construction Ltd - ₦80M yearly turnover

Profit: ₦20M | CIT: ₦6M (30%) | Development Levy: ₦800k (4%)

Large business - Pays both CIT and new Development Levy. Total tax: ₦6.8M

Ngozi's Tech Company - ₦200M yearly turnover

Profit: ₦50M | CIT: ₦15M (30%) | Development Levy: ₦2M (4%)

Large profitable business - Contributes significantly to national development through taxes.

What Changed in 2026?

✓ Small Business Threshold Doubled: Was ₦25M, now ₦50M - More businesses pay NO tax!

✓ Medium Category Removed: Now just Small (0%) and Large (30%) - Simpler!

✓ NEW Development Levy (4%): Replaces TET, NITDA, NASENI - One levy instead of three!

✓ Who Pays Development Levy? Only businesses with ₦50M+ turnover.

What Should You Do?

1. Keep Good Records: Track all income and expenses properly.

2. Register for Taxes: Get your TIN even if you pay 0% tax.

3. File Annual Returns: Required by law even for small businesses.

4. Get Professional Help: Hire an accountant if turnover is over ₦10M.

2026 Business Tax Structure

Nigeria now uses a simplified 2-tier system based on annual turnover.

Small Business

Annual turnover below ₦50 million

0% Tax

No CIT, no Development Levy

DOUBLED from ₦25M in 2025 - More businesses now tax-free!

Large Business

Annual turnover ₦50M or more

30% CIT

+ 4% Levy

CIT on profit + Development Levy

NEW: Development Levy replaces TET, NITDA & NASENI

Enter Your Business Details

Try an Example

Important Note

Your Results Will Appear Here

Tax Calculation Results

Business Summary

Company Income Tax (CIT)

Development Levy (2026)

VAT Liability

2026 Tax Rates

VAT Rate

Understanding Your Business Tax

What These Taxes Mean:

Real Business Examples:

What Changed in 2026?

What Should You Do?

2026 Business Tax Structure

Small Business

Large Business

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