Understanding Nigeria's 2025 Tax Laws

The Nigeria Tax Act 2025 simplifies personal income tax (PIT) for individuals (e.g., salaried workers, self-employed). Key features:

• Tax-Free Threshold: First ₦800,000 of taxable income is tax-free.
• Progressive Rates:
  • 0% on first ₦800,000
  • 15% on ₦800,001–₦3,000,000
  • 18% on ₦3,000,001–₦12,000,000
  • 21% on ₦12,000,001–₦25,000,000
  • 23% on ₦25,000,001–₦50,000,000
  • 25% on above ₦50,000,000
• Rent Relief: 20% of rent paid, up to ₦500,000, is deductible.
• Deductions: Includes pension (8%), NHF (2.5%), NHIS (variable, often 5%).
• Minimum Tax: If tax is too low, 1% of gross income may apply (e.g., for informal earners).
• Changes: Old reliefs like Consolidated Relief Allowance (CRA) are gone; exemptions like gratuity removed.