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2026 personal income tax pack: three taxpayers, one payroll

The capstone project for Personal Income Tax & PAYE (2026 Rules) — a free Finance course. Pass it and you earn a certificate anyone can verify.

Start the course free Download the project workbook

The project unlocks once you complete the lessons. The workbook is free to download now so you can see exactly what is expected.

What you will submit

A shared Google Sheet or Doc link containing: (1) three fully worked individual tax computations with band-by-band lines and the correct authority, return and deadline for each; (2) a five-person payroll table with monthly PAYE totalled AND split by receiving state; (3) a compliance calendar naming forms, portals and exact due dates; and (4) a short plain-language client note on the 2026 changes.

What to do, step by step

  1. PART 1 — Three individuals. Compute the 2026 annual personal income tax and monthly PAYE for each of these three people using the Nigeria Tax Act bands (first ₦800,000 at 0%, next ₦2,200,000 at 15%, next ₦9,000,000 at 18%, next ₦13,000,000 at 21%, next ₦25,000,000 at 23%, above ₦50,000,000 at 25%). (a) Halima, a salaried nurse in Kano on ₦150,000/month, basic+housing+transport 60% of gross, basic 40% of gross, annual rent ₦480,000. (b) Segun, a freelance videographer in Lagos with gross receipts of ₦9,000,000, allowable business expenses of ₦2,100,000, annual rent ₦1,800,000, NHIS ₦150,000, and ₦450,000 of withholding tax already deducted by his corporate clients. (c) Mrs Okonkwo, an executive in Abuja on ₦2,200,000/month, basic+housing+transport 60% of gross, basic 40% of gross, annual rent ₦7,200,000, life assurance premiums ₦400,000.
  2. For EACH of the three, show your working in clearly separated steps: gross income, each relief and deduction claimed (naming it), chargeable income, the tax computed band by band as separate lines, the annual tax, and the monthly figure where relevant. For Segun, also subtract his withholding tax credits and state the balance he actually pays on filing.
  3. State, for each of the three, which tax authority receives their tax and which return they file (PAYE via employer, or Form A self-assessment) — and give the exact filing deadline that applies to them.
  4. PART 2 — A payroll. 'Zenith Fabrics Ltd' is based in Ikeja with five staff: Amaka ₦420,000/month (resident in Lagos), Tunde ₦210,000/month (resident in Ogun), Bisi ₦145,000/month (Lagos), Chidi ₦95,000/month (Lagos) and Femi ₦70,000/month (Lagos). Assume basic+housing+transport is 60% of gross and basic is 40% of gross for all staff, and use declared annual rents of ₦1,500,000, ₦720,000, ₦480,000, ₦360,000 and ₦240,000 respectively. Build a payroll table with one row per employee and columns for gross, each relief, chargeable income, annual tax, and monthly PAYE.
  5. Total the monthly PAYE, and CRITICALLY, split the total by the state revenue service that must receive it — showing clearly which staff member's tax goes to which state and why. Explain in one or two sentences what happens if the company remits everything to Lagos.
  6. PART 3 — The compliance calendar. Build a table of every personal-tax obligation Zenith Fabrics has for the year: the obligation, the authority it goes to, the frequency, and the exact due date. Include the monthly PAYE remittance and the employer annual return, and name the form and portal used.
  7. Add a short 'what changed in 2026' note (150–250 words) that a client could read, explaining the abolition of the Consolidated Relief Allowance, the introduction of rent relief, the new 0% band, and the minimum-wage exemption — in plain language, with at least one naira figure from your own computations.
  8. Put everything in one shared Google Sheet or Google Doc, set link sharing to 'anyone with the link can view', and submit the link.

Files to work with

Project workbook (fill in, then submit)The whole brief, an evidence checklist, the grading rubric as a self-check and the link-sharing steps in one file. Opens in Word, Google Docs or WPS.Word · 7 KB

How it is graded

CriterionWeight
The 2026 bands are applied correctly and graduated — each rate touching only its own slice, with band-by-band lines shown rather than a single rate applied to the whole income25%
Reliefs are correct and current — rent relief computed as the LOWER of ₦500,000 or 20% of rent paid (including the cap biting for the high earner), pension/NHF/NHIS/life assurance applied, and NO use of the abolished Consolidated Relief Allowance20%
Segun's withholding tax credits are correctly subtracted to reach a balance payable, and the minimum-wage employee is correctly treated as exempt from PAYE15%
The payroll is accurate and, crucially, the PAYE total is split by the state of RESIDENCE — with Tunde's tax correctly routed to Ogun and the consequence of misremitting explained20%
The compliance calendar is complete and accurate — correct authorities, forms (Form H1, Form A), portals (Rev360, state eTax) and exact due dates including the 10th monthly and 31 January10%
The client note is clear, plain-language and accurate about the 2026 changes, and the whole pack is organised, labelled and genuinely usable by a real client10%

You need 65% overall to pass. A failed submission comes back with feedback and can be revised and resubmitted.

Before you submit: make your link public

If your work lives in Google Drive or Google Docs, open Share → General access and change “Restricted” to “Anyone with the link” (Viewer). Then paste the link into a private browser window: if it opens without sign-in, you are ready. A private link cannot be graded — it is the single most common reason a good project fails.

Frequently asked questions

Do I have to finish Personal Income Tax & PAYE (2026 Rules) before submitting the project?

Yes. The submission screen opens once every lesson in Personal Income Tax & PAYE (2026 Rules) is marked complete. The lessons are where the methods, the Nigerian context and the worked examples the project depends on are taught.

How is the project graded?

An examiner scores each rubric criterion from 0 to 100 and weights them as shown on this page; you need 65% overall to pass. Most submissions are graded within minutes and you get written feedback on what was strong and what to improve.

Can I resubmit if I fail?

Yes. A failed project comes back with feedback; revise the weak parts and resubmit. A passed project is final — the certificate is issued and cannot be re-rolled.

What do I actually submit?

A write-up of what you did (under 5,000 characters) plus a public link to your work — a Google Drive folder, Google Doc, spreadsheet, GitHub repository or video. The link must open without sign-in; a private link cannot be graded. The free project workbook on this page walks you through all 8 steps.

Is the certificate real?

Yes. Passing this project issues a certificate with a unique verification code. Anyone — an employer, a client, a school — can open the verification page and see that the certificate is genuine and which project earned it.

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Personal Income Tax & PAYE (2026 Rules) is free and self-paced. Finish the lessons, complete this project, and the certificate is yours to share.

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