Side Hustle Tax
Calculator
Estimate your tax on informal income — POS business, online sales, market trading, ride-hailing, and other side hustles. Find out if you owe tax and how much.
Your Side Hustle Income
How Side Hustle Income Is Taxed
Under the NTA 2025, all income is taxable — there is no special exemption for informal or side hustle income. POS agents, online vendors, market traders, and ride-hailing drivers are all classified as self-employed individuals and subject to personal income tax using the standard six-band PAYE structure.
When Do You Actually Owe Tax?
The good news: the first ₦800,000 of annual taxable income (after expenses) is completely tax-free. If your side hustle earns ₦150,000/month (₦1.8M/year) but you have ₦80,000/month in expenses (₦960,000/year), your taxable income is only ₦840,000 — meaning you would owe just 15% on the ₦40,000 above the threshold, which is ₦6,000 for the entire year.
Deductible Expenses
You can deduct all legitimate business costs: POS terminal charges and fees, data and airtime, transportation costs, stock/inventory purchases, packaging materials, delivery fees, phone and equipment, and any workspace rent. Keep receipts or bank statements as evidence.
PAYE Tax Bands for Self-Employed (2026)
NTA 2025Frequently Asked Questions About Side Hustle Tax
Yes. POS agency income is taxable under Nigerian law. However, if your annual profit (revenue minus expenses) is below ₦800,000, you fall within the tax-free band and owe nothing. Most small POS agents with modest turnover will pay zero tax.
Yes. Any regular income-generating activity is considered a trade or business. Instagram vendors, WhatsApp sellers, and Jumia/Konga merchants are all self-employed traders and must declare their income.
If you already have a TIN from employment, you do not need a separate one. If you have never registered, you should obtain a TIN through the JTB portal. It is free and takes minutes.
All income must be aggregated. Your employer handles PAYE on your salary, but you are responsible for declaring additional side hustle income in your annual tax return. The combined income determines your final tax band.
Yes. The purchase price of your POS terminal, phone, and any equipment used for the business can be claimed as capital allowances. Running costs like data, airtime, and transaction charges are deductible as expenses.
Yes. Ride-hailing income is taxable. Deductible expenses include fuel, vehicle maintenance, insurance, and Bolt/Uber commission fees. The platform does not deduct tax on your behalf — you must file your own returns.
The NRS is increasingly using bank data and platform records to identify unregistered taxpayers. Penalties for non-registration include fines and back-assessment of taxes owed. Voluntary registration is always better than being discovered.
Only if your annual turnover exceeds ₦25 million. Below that threshold, you are not required to register for or charge VAT. Most side hustlers fall well below this limit.
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