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Nigeria vs Japan
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇳🇬 Nigeria
vs
🇯🇵 Japan
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
7–24%
Tax reform bill (2024) restructuring rates; implementation phased
No change
5–45%
Basic deduction increase for low earners
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
7.5%
7.5% maintained; reform bill proposes higher rate
No change
8–10%
No rate change; digital services tax under review
No change

Corporate Tax Rate

Corporate Tax Rate
25%
Reform bill reducing to 25% for large companies
-5.0pp vs 2025
~30.62%
Global Minimum Tax applies to large MNCs
No change

Capital Gains Tax

Capital Gains Tax
10%
10% stable
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change

Social Security & Payroll

Social Security / Payroll
18%
18% total maintained; pension fund growing
No change
~28.5%
Coverage expansion to part-time workers ongoing
No change
State, Regional & Local Taxes

🇳🇬 NigeriaState & Local Government Taxes

Nigeria's 36 states and FCT each have their own Personal Income Tax Law (PITL), though rates follow a national schedule. States levy property rates, land use charges, and business premises levies. The 774 local government areas (LGAs) levy tenement rates and market fees. Only federal employees and residents in the FCT pay federal income tax to FIRS; all others pay to state tax authorities. VAT revenue is shared: 15% FIRS, 50% states, 35% LGAs.

🇯🇵 JapanPrefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Nigeria vs Japan: Key Tax Differences (2026)

💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (7–24% vs 5–45%). 🇳🇬 Nigeria is more favourable for high earners.

🛒 VAT/Sales Tax: Japan has a higher consumption tax (7.5% vs 8–10%).

🏢 Corporate Tax: 🇳🇬 Nigeria offers a lower corporate rate (25% vs 30.62%), which can influence business location decisions.

📈 Capital Gains: 🇳🇬 Nigeria taxes investment gains at a lower rate (10% vs 20.315%), benefiting investors.

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