Withholding Tax Calculator Nigeria

Quickly calculate WHT deductions on any payment type — rent, professional fees, contract payments, commissions, and more.

WHT Deduction
₦50,000
Payment Type
Rent
WHT Rate
10%
Gross Amount
₦500,000
WHT Deducted
₦50,000
Net Payment to Recipient
₦450,000
Note: The payer deducts WHT and remits it to FIRS within 21 days of the month of deduction. The recipient can use the WHT credit note to offset their income tax liability.
Extended

WHT Analysis Tools

Full WHT rates reference table, annual liability projection, and gross-to-net analysis

Payment CategoryIndividual RateCorporate RateNotes
Rent10%10%Paid by tenant
Professional Fees10%10%Legal, audit, consulting
Contract (Supply)5%5%Goods supply contracts
Contract (Services)10%10%Service contracts
Commission10%10%Agency, brokerage
Dividends10%10%Final tax for individuals
Royalties10%10%Patents, trademarks
Interest10%10%Bank deposits, loans
Director Fees10%10%Board fees
Technical Fees10%10%Know-how, management
Construction5%5%Building contracts
International Transport10%10%Freight, shipping
WHT must be remitted to FIRS by the 21st of the month following deduction. Credit notes issued to recipients can offset income tax. Exemptions apply for transactions below ₦10,000 threshold in some categories.
Professional

WHT Multi-Payment Calculator

Add multiple payment lines, generate WHT summary report, monthly aggregation, and TCC planning

Add up to 10 payment lines across different types and months to generate a complete WHT schedule.
Payment Line
Payment Line
Payment Line
MonthTypeGrossRateWHTNet
JanRent₦500,00010%₦50,000₦450,000
JanProfessional Fees₦200,00010%₦20,000₦180,000
FebContract Payment₦1,000,0005%₦50,000₦950,000
TOTAL₦1,700,000₦120,000₦1,580,000
Jan₦70KFeb₦50K
MonthGrossWHTFIRS Deadline
Jan₦700,000₦70,00021st Feb
Feb₦1,000,000₦50,00021st Mar
TCC (Tax Clearance Certificate) Planning
Total WHT Credits Accumulated
₦120,000
WHT credit notes can be used to offset final income tax liability. Apply for TCC from your FIRS office after filing your annual returns. Credits are valid for the tax year in which they were deducted.

How to Use This Calculator

Select the payment type from the dropdown — the applicable WHT rate loads automatically. Enter the gross amount before any deductions. The calculator instantly shows the WHT amount to deduct and the net amount payable to the recipient.

The payer (company or individual making the payment) is responsible for deducting WHT and remitting it to the Federal Inland Revenue Service (FIRS) or the relevant State Internal Revenue Service.

WHT Rates in Nigeria

WHT = Gross Amount × WHT Rate Payment Type | Rate ───────────────────────────────── Rent | 10% Professional Fees | 10% Contract / Supply | 5% Commission | 10% Consultancy Fees | 10% Director Fees | 10% Royalties | 10% Interest (Individual) | 10% Net Payment = Gross Amount − WHT

Contract payments attract a lower 5% rate because they often involve procurement of goods where margins are tighter. All other common transaction types attract the standard 10% WHT rate.

Example

Scenario: Consultancy Invoice

Kemi's consulting firm invoices a Lagos company ₦500,000 for professional advisory services.

Payment typeProfessional Fees
Gross invoice₦500,000
WHT rate10%
WHT deducted = ₦500K × 10%₦50,000
Net paid to Kemi₦450,000

The company pays Kemi ₦450,000 and remits ₦50,000 to FIRS. Kemi receives a WHT credit note for ₦50,000, which she can use to reduce her annual income tax liability — she does not lose the money permanently.

FAQ

The payer (the party making the payment) is responsible for deducting WHT at source. This applies to companies, government agencies, and in some cases individuals making business-related payments. The deduction must be remitted to FIRS within 21 days after the end of the month in which the deduction was made.
No. WHT is an advance payment of income or company tax. The recipient can use the WHT credit certificate to offset their total annual tax liability. If the WHT exceeds the final tax liability, the excess can be refunded or carried forward. It is not an additional cost — it is tax prepaid on your behalf.
Failure to deduct and remit WHT attracts penalties under the FIRS Act. The company may be held liable for the undeducted amount plus a penalty of 10% per annum and interest on the outstanding amount. FIRS can also treat the gross payment as a disallowable expense, increasing the company's taxable profit.
There is no blanket exemption for small businesses from deducting WHT. However, in practice, individual consumers making personal payments (e.g., renting an apartment) are generally not expected to deduct WHT — it is primarily a business obligation. If you are a registered business paying another registered business, WHT obligations apply.
Contract and supply payments attract a 5% WHT rate — lower than most other payment types. This includes construction contracts, supply of goods, and other contract-based transactions. The lower rate reflects the fact that contract margins may be tighter than pure professional fee income.

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