🇳🇬 Understanding Nigeria’s New Personal Tax Law (2025)
Nigeria’s Tax Act 2025 introduces major changes to how individuals are taxed, and it officially takes effect from January 1, 2026. Whether you’re an employee, freelancer, or business owner, these updates will shape how your income is taxed and what deductions you can claim.
đź’ˇ 1. Who Needs to Pay
Under the new law, anyone earning ₦800,000 or less per year is completely exempt from personal income tax.
If your income is above that threshold, your tax will be calculated using a progressive rate — meaning higher earners will pay a slightly larger percentage of their income in tax.
đź“Š 2. Updated Tax Rates
Here’s the new structure for personal income tax in Nigeria:
- ₦0 – ₦800,000: 0%
- ₦800,001 – ₦3 million: 15%
- ₦3 million – ₦12 million: 18%
- ₦12 million – ₦25 million: 21%
- ₦25 million – ₦50 million: 23%
- Above ₦50 million: 25%
This new system is designed to make taxation fairer, ensuring that those with higher incomes contribute more while easing the burden on low- and middle-income earners.
🏠3. Rent Relief and Deductions
The old Consolidated Relief Allowance (CRA) has been scrapped. In its place, taxpayers who rent their homes can now claim a rent relief — up to ₦500,000 or 20% of their annual rent, whichever is lower.
Other deductions, such as pension, National Health Insurance Scheme (NHIS), and National Housing Fund (NHF) contributions, are still allowed, but you’ll need proper documentation to claim them.
🌍 4. Nigerians Living Abroad
If you spend more than 183 days in Nigeria within a year or have strong economic or family ties to the country, you’ll be classified as a tax resident.
That means you’ll be required to pay tax on your worldwide income, not just what you earn in Nigeria.
Kategorien
- World Affairs
- News
- Politics
- Entertainment
- People & Nation
- Ausbildung
- Tech & Innovation
- Security & Conflicts
- Business & Economy
- Opinion & Analysis
- Health & Wellness
- Education & Opportunities
- Science & Environment
- Lifestyle & How-To
- History & Heritage
- Art
- Causes
- Crafts
- Dance
- Drinks
- Film
- Fitness
- Food
- Spiele
- Gardening
- Health
- Startseite
- Literature
- Music
- Networking
- Andere
- Party
- Religion
- Shopping
- Sports
- Theater
- Wellness
Mehr lesen
The Independent National Electoral Commission (INEC) has assured Nigerians that the November 8 Anambra governorship election will hold as scheduled without disruptions, despite minor network issues experienced during a recent mock accreditation exercise. INEC Chairman, Prof. Joash Amupitan, SAN, gave the assurance on Tuesday in Abuja at the Inter-Agency Consultative Committee on Election...
Nigerian singer-songwriter Simi has issued a strong message to industry veterans, urging them to stop signing young artists just for clout. In a recent statement, Simi cautioned that bringing up-and-coming talents into big record labels without genuine plans for growth does more harm than good. She emphasized that young artists need mentorship, structure, and creative freedom—not just a...
In a stunning revelation, former Nigerian President Goodluck Jonathan has disclosed a dramatic episode from his tenure as Vice President, when a critically ill President Umaru Musa Yar’Adua attempted to transfer power to him via a letter that was never delivered. The failure to deliver the letter, Jonathan claims, left Nigeria without a functioning president or commander-in-chief,...
Nollywood actor Gideon Okeke has ignited a conversation on cultural identity and naming traditions after making a bold observation about Yoruba and Igbo naming patterns. In a recent post, the actor remarked that “Yorubas name their children based on hope and aspiration, while Igbos often name theirs based on pain, trials, or past experiences.” The statement has stirred varied...
Sixty-six parcels of loud—a potent strain of cannabis—camouflaged as green tea have been intercepted by operatives of the National Drug Law Enforcement Agency (NDLEA) at the Murtala Muhammed International Airport (MMIA), Ikeja, Lagos. According to a statement signed by Femi Babafemi, NDLEA’s Director of Media and Advocacy, the operation was the result of credible intelligence...
