Finally, a step-by-step guide on how to start paying your taxes in 2026
- The new tax system in Nigeria will be implemented on January 1, 2026, with a focus on compliance.
- Individuals earning below ₦100,000 monthly or ₦1.2 million annually will be exempt from the PAYE tax.
- The tax structure includes multiple bands, with the first ₦800,000 being tax-free and higher rates applied progressively.
The upcoming changes to Nigeria's tax system represent a necessary evolution towards greater compliance and fairness in taxation. However, the complexity of the new rules may pose challenges for individuals and small businesses, necessitating proactive measures to ensure understanding and adherence. It would be beneficial for the government to provide clear guidance and resources to ease the transition.
