Tinubu Unveils Personal Income Tax Calculator To Enhance Transparency.
President Bola Tinubu has launched a Personal Income Tax Calculator, a new tool designed to help Nigerians understand the impact of his administration’s tax reforms, set to take effect in January 2026. Announced on Thursday, 21 August 2025, via a post on his official X account, the President described the calculator as a step towards a fairer and more transparent tax system.
The calculator, accessible through the government’s fiscal reforms portal, allows individuals to compare their current tax obligations with estimated payments under the new regime. Tinubu emphasised that the reforms aim to protect low-income earners, simplify compliance, and promote equity. “A fair tax system must never punish poverty or weigh down the most vulnerable,” he stated, highlighting the reforms’ focus on redistribution and fairness.
The initiative follows the signing of four tax reform bills into law on 26 June 2025, including the Nigeria Tax Act, which consolidates fragmented tax laws, and the Nigeria Tax Administration Act, establishing a unified framework for tax collection across all government levels. The reforms exempt those earning up to 800,000 naira annually from personal income tax, benefiting over 70% of Nigerian workers, particularly those on minimum wage. Small businesses with an annual turnover below 50 million naira will also be exempt from company income tax, while VAT on essential goods like food, healthcare, and education will be removed.
Tinubu urged Nigerians to engage with the calculator, stating it demonstrates how the reforms ensure progressivity and ease compliance. “Together, we are renewing hope in the Nigeria of our dreams,” he said, encouraging citizens to trust in the nation’s economic future. The launch has been widely discussed, with analysts noting its potential to boost public trust in Nigeria’s evolving tax system as the country aims to increase its tax-to-GDP ratio from 10% to 18% by 2026.
The government’s push for transparency and inclusivity has been welcomed by many, though some experts caution that effective implementation will be key to realising the reforms’ benefits. Nigerians are encouraged to explore the tool to better understand how the changes will affect their finances.
