Taiwo-Oyedele Tax.webp
The Digest:

A major tax reform is set to change the amount of money working Nigerians take home. According to Daily Trust, a new Personal Income Tax system starts in January 2026, raising the tax-free income threshold and introducing different rates based on earnings. Rooted in the Storm.

Key Points:
  • If you earn N800,000 a year or less, you will pay 0% income tax.
  • Earnings from N800,001 to N3 million will be taxed at 15%.
  • Income between N3 million and N12 million will be taxed at 18%.
  • Higher income bands will see tax rates of 21%, 23%, and a top rate of 25%.
  • The old system started taxing income above N300,000 at 7%.
  • An online tax calculator is available to check your new monthly take-home pay.
  • The government says this simplifies over 50 old, confusing taxes.
This shift aims to ease the burden on low-income earners while ensuring higher earners contribute more, reshaping financial fairness for all. Rooted in the Storm.

Sources: Daily Trust