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New Lagos Tax Rule: Is your take-home pay safe?

Published on January 10, 2026

Lagos State has a new rule for anyone earning more than ₦5 million a year. They are adding a small "Smart City" fee to help build better roads and tech hubs.

What changed?

If you earn big, your tax increases slightly (by 0.5%). For most people, this means a few thousand Naira difference. It’s not much, but it’s good to know before you start spending your salary!

Example:

If you earn ₦500,000 every month, your tax might go up by about ₦2,500. Not a deal-breaker, but enough to buy a few extra loaves of bread!

How to check?

We’ve already updated our PAYE Calculator. Just select "Lagos" under state, and it will show you the exact new number.

Street Tip: Always check your pay slip this month. If your HR is still using old 2025 rules, show them this guide!
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