Free Withholding Tax Calculator (Nigeria)
Pick the transaction type - rent, professional fees, goods, or construction - and get the WHT rate, the amount to deduct, and the net payable, per the 2024 Withholding Regulations. Free, no sign-up.
WHT in Nigeria (2026): 10% on dividends, interest, rent and royalties to companies; 5% on resident professional fees and royalties to individuals; 2% on supply of goods and construction. No TIN doubles the rate; small suppliers under ₦25m turnover (transactions ≤₦2m) are exempt.
The payer deducts and remits this WHT; the recipient gets a WHT credit note to offset against their own tax. Deducted amounts are due to the NRS by the 21st of the following month.
100% free and private - everything is calculated in your browser. Nothing is uploaded unless you ask us to email your result, and even then we keep only your email address. Estimates only, not tax advice - misclassifying a transaction type is common, so confirm with the NRS or your tax adviser before remitting.
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WHT rates by transaction type
These rates come from the PwC Nigeria withholding tax summary and the Deduction of Tax at Source (Withholding) Regulations 2024, gazetted 2 October 2024 and in force since 1 January 2025, carried forward into the Nigeria Tax Act 2025.
| Transaction | Rate |
|---|---|
| Dividends, interest, rent, royalties - to a company | 10% |
| Professional/consultancy/technical/management fees (resident) | 5% |
| Royalties - to an individual | 5% |
| Supply of goods/materials, or construction | 2% |
| Payments to non-residents (most service fees) | 5% |
Withholding Tax FAQ
What are Nigeria's withholding tax rates in 2026?
Under the Deduction of Tax at Source (Withholding) Regulations 2024, carried into the Nigeria Tax Act 2025: dividends, interest, rent, and royalties paid to a company are 10%; resident professional, consultancy, technical, and management fees and royalties paid to individuals are 5%; supply of goods, materials, and construction are 2%; and most payments to non-residents are 5%. Pick your transaction type above and the rate is applied automatically.
How do I calculate withholding tax?
WHT = gross amount × rate. A ₦500,000 professional fee at 5% has ₦25,000 deducted, so the recipient is paid ₦475,000 net. The payer remits the ₦25,000 to the Nigeria Revenue Service and gives the recipient a WHT credit note, which the recipient later uses to reduce their own tax bill.
What happens if the recipient has no Tax Identification Number?
The regulations double the applicable rate - a 5% category becomes 10%, a 10% category becomes 20%. It's a strong incentive to always collect a TIN before paying anyone, and to ask your own clients for one before they pay you.
Who is exempt from having WHT deducted?
Small companies and unincorporated businesses with annual turnover under ₦25 million are exempt from having WHT deducted, provided a single transaction doesn't exceed ₦2 million in that month and the recipient has a valid TIN. It's a real saving for small suppliers - claim it by telling your customer you qualify, not by assuming they'll check.
Who deducts withholding tax - the buyer or the seller?
The payer (usually a company, government body, or other designated withholding agent) deducts WHT before paying the supplier or service provider, then remits it to the Nigeria Revenue Service by the 21st of the following month. The recipient receives the net amount plus a credit note for the tax already paid on their behalf.
How is this different from a Growpins Ledger account?
This calculator estimates one transaction. Growpins Ledger applies your WHT rate to invoices automatically and keeps a running record of tax withheld across every client - the figure your accountant asks for is a report, not a reconstruction.
Applying WHT on every invoice, by hand?
Growpins Ledger applies your VAT and WHT rates to every invoice automatically and keeps the running total your accountant needs - built by the team behind Growpins, founded by Dokun Bamigboye. Free tier, no card required.
Get Started FreeCharging VAT too? Use the Nigeria VAT Calculator, or browse all free tools.
This page is general information, not tax advice. WHT categorization is one of the most commonly misapplied areas of Nigerian tax - the Nigeria Revenue Service's current guidance or a licensed tax adviser should confirm your specific transaction.