Self-Employment Tax Calculator
Estimate your self-employment tax liability with allowable business deductions, based on the Nigeria Tax Act 2025.
Self-employed individuals in Nigeria — freelancers, consultants, and sole traders — are taxed using the same progressive bands as PAYE employees. The key difference is that business expenses are deducted before applying personal reliefs. Use this free calculator to estimate your tax liability.
- Business expenses are deducted before personal reliefs (Section 27)
- Same progressive bands as PAYE apply (0% to 25%)
- Self-assessment returns due by March 31 annually
- Quarterly instalment payments recommended for cash flow planning
NTA 2025 Progressive Tax Bands Apply
Self-employment income is taxed using the same PAYE progressive bands (Part III, Section 34). The first ₦800,000 is tax-free. Business deductions reduce your income before tax is calculated. Self-assessment returns are due by March 31 annually.
Self-Employment Income & Deductions
Understanding Self-Employment Tax
Section 27: Allowable Deductions
Business expenses wholly, exclusively, and necessarily incurred in generating income are deductible. This includes office rent, utilities, professional fees, and other operating expenses.
Section 30: Capital Allowances
Depreciation on business equipment and assets qualifies for capital allowances, reducing your taxable income over the useful life of the asset.
Section 34: Progressive Tax Bands
After deductions and reliefs, net income is taxed progressively: 0% on first ₦800K, then 15%, 18%, 21%, 23%, and 25% on higher bands.
Section 33: Personal Reliefs
Rent relief (20% of rent paid, capped at ₦500K), pension contributions, NHF, NHIS, and life insurance premiums further reduce taxable income. CRA is abolished under NTA 2025.
Frequently Asked Questions
How is self-employment tax calculated in Nigeria?
Self-employment tax is calculated by deducting allowable business expenses from gross income (NTA 2025, Section 27), then applying personal reliefs (Section 33), and finally taxing the remaining amount using the six progressive bands from 0% to 25% (Section 34).
What business expenses can I deduct as a freelancer?
Under NTA 2025 Section 27, you can deduct expenses wholly, exclusively, and necessarily incurred in earning income: office rent, utilities, internet, professional fees, equipment depreciation (capital allowances), travel for business, and professional development costs.
When are self-employment tax returns due?
Self-assessment returns must be filed with FIRS by March 31 of the year following the tax year. Quarterly instalment payments are recommended to avoid large lump-sum payments at year-end.
Is the self-employment calculator free?
Yes, the TaxEase self-employment tax calculator is completely free with no signup required. Create a free account to save calculations, export PDFs, and access AI-powered tax analysis.
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