Tinubu Unveils Personal Income Tax Calculator Ahead of 2026 Tax Reforms
President Bola Ahmed Tinubu has announced a Personal Income Tax Calculator to help Nigerians understand and prepare for sweeping tax reforms that will take effect from January 2026. The initiative is part of the Federal Government’s broader fiscal reform agenda, which officials describe as the most significant overhaul of Nigeria’s tax system in decades.
Speaking during the announcement in Abuja, Tinubu said the reforms were designed to create a fairer and more transparent system that would protect low-income earners while ensuring wealthier citizens contribute more to the nation’s development. “A fair tax system must never punish poverty or weigh down the most vulnerable,” the President said. “With the new tax laws I recently signed, taking effect from January 2026, we have lifted this burden and created a path of equity, fairness, and true redistribution in our economy.”
How Does the Tax Calculator Work?
The newly launched tax calculator, accessible here , allows users to estimate their personal income tax obligations under the current law and compare them with what they would pay under the new regime. A scannable QR code has also been provided for easy access.
According to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, the calculator simulates both current and proposed rates, giving taxpayers a clear picture of their financial obligations. “It offers a side-by-side comparison that demystifies the process and helps Nigerians plan better,” Oyedele explained. “It also underscores how the reforms are structured to protect low-income earners while improving compliance and transparency.”
The tool also highlights tax-deductible contributions such as pensions and National Housing Fund (NHF) payments, showing how these can reduce overall liability. For workers and businesses, it provides better clarity ahead of the January rollout and is expected to increase voluntary compliance.
Renewed Hope – What It Means for Nigerians?
Despite the challenges associated with his reforms, Tinubu insists that they mark a turning point.
“Together, we are renewing hope in the Nigeria of our dreams,” he said. “Take a bet on our country. Bet on Nigeria to work for you, your family, and your community.”
The Personal Income Tax Calculator is seen as both a symbol and a practical step toward transparency, giving Nigerians the chance to understand how the new rules will affect them long before the laws come into force.
Nigeria’s tax reform drive began in 2024 with the establishment of the Fiscal Policy and Tax Reforms Committee, tasked with simplifying the system, boosting revenue, and aligning tax practices with international standards. The reforms seek to address long-standing issues of inefficiency, multiple taxation, and poor compliance, which have hampered economic growth and investor confidence.
For years, Nigeria’s tax-to-GDP ratio has hovered around 10 percent, one of the lowest in Africa and well below the continental average of 16 percent. By introducing a more progressive and transparent structure, the government hopes to raise this figure while easing the burden on struggling households.
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