Tax Term
What is Tax Bands?
Income ranges that are taxed at specific rates in a progressive tax system.
Detailed Explanation
Nigeria has six tax bands for 2026: 0% (first ₦800k), 15% (next ₦2.2m), 18% (next ₦9m), 21% (next ₦13m), 23% (next ₦25m), and 25% (above ₦50m).
Example
The second tax band covers income from ₦800,001 to ₦3,000,000 at 15%.