Low-income earners in Nigeria will not pay personal income tax under the new tax law, the Nigeria Revenue Service, NRS, has said.
The clarification was made by the Regional Administrator of the NRS, Danjuma Manga, on Thursday in Gombe at the 2026 symposium of the Forum of Heads of Federal Ministries, Departments and Agencies.
Manga said individuals who earn N800,000 or less annually are exempted from personal income tax under the 2025 tax reforms. He added that persons earning the national minimum wage of N70,000 per month or less are also exempted.
According to him, the reforms are anchored on four legislations — the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service Establishment Act and the Joint Revenue Board Act which aim to harmonise tax administration, promote fairness and improve compliance.
He explained that the new system is progressive, with rates ranging from 0% for incomes up to N800,000 to 25% for incomes above N50 million annually.
“Tax payment is the responsibility of all citizens as provided under Section 24, subsection 4 of the Nigerian Constitution. However, you only pay tax when you earn income, make a profit or dispose of an asset and realise a gain,” he said.
Manga, who is also the State Monitor for Adamawa, Gombe and Taraba, said the law also allows reliefs such as pension, National Health Insurance, National Housing Fund, life insurance premium and rent relief to further reduce taxable income.
He said the reforms are designed to protect low-income earners, encourage economic activity and increase revenue allocation to states for sustainable development.
Leave a comment