Detailed Tax Law FAQ (2026)

Everything you need to know about the 2026 Nigerian tax reforms. We've compiled the most common questions on PAYE, VAT, SME exemptions, and the digital economy to help you stay compliant and save money.

Pro Tip: Use our suite of Tax Calculators to see how these laws apply specifically to your income!

The New Tax Law Explained

(Salary, VAT & SMEs)

Salary & Personal Income Tax (PAYE) Updates

Is there a Tax Exemption for salaries under ₦70,000 or ₦800,000?

Will my take-home pay increase under the new tax law?

Small Business & SME Tax Exemptions

Do small businesses pay Company Income Tax (CIT) if turnover is under ₦100 Million?

Do I still need to file tax returns if I am exempt?

VAT Rate & Cost of Living

Did the VAT rate increase to 10% or stay at 7.5%?

Are rent and food exempt from VAT in Nigeria?

Digital Economy

I earn my money in Dollars/USDT. Does the Nigerian government have business with it?

Is Crypto finally taxed in Nigeria?

Which exchange rate will they use? Black Market or Official?

Will banks report my P2P transactions to NRS?

General Tax Registration & Filing

Is a Tax Identification Number (TIN) mandatory for individuals in Nigeria?

Do I need to file tax returns if my business made a loss or zero profit?

Personal Income Tax (PIT) for Hustlers

How do freelancers and self-employed people pay tax in Nigeria?

Do I pay Income Tax to the State where I work or the State where I live?

Withholding Tax (WHT) – The 'Deductions'

Is Withholding Tax (WHT) a separate or extra tax in Nigeria?

How do I use Withholding Tax Credit Notes to reduce my tax liability?

Can I get a cash refund for excess Withholding Tax payments?