What changed in Nigeria's 2025 Tax Act

The Nigeria Tax Act 2025 (NTA 2025) took effect 1 January 2026 and replaced the PAYE regime that had applied since 2011. Here's exactly what changed for anyone paying PAYE.

The new PAYE bands

The first ₦800,000.00 of taxable income is tax-free, then 15% up to ₦3,000,000.00, 18% up to ₦12,000,000.00, 21% up to ₦25,000,000.00, 23% up to ₦50,000,000.00, 25% above ₦50,000,000.00.

What the old regime looked like

The old regime (in force through 2025) taxed income from ₦1 with no tax-free band, at rates from 7% to 24%, using a Consolidated Relief Allowance instead of itemized reliefs.

Frequently asked questions

What are Nigeria's PAYE tax rates for 2026?

The first ₦800,000.00 of taxable income is tax-free, then 15% up to ₦3,000,000.00, 18% up to ₦12,000,000.00, 21% up to ₦25,000,000.00, 23% up to ₦50,000,000.00, 25% above ₦50,000,000.00.

What changed from the old PAYE regime?

The old regime (in force through 2025) taxed income from ₦1 with no tax-free band, at rates from 7% to 24%, using a Consolidated Relief Allowance instead of itemized reliefs. .

Is this official tax advice?

No — for guidance only, not tax advice.