Tinubu govt announces 50 tax breaks for Nigerians starting 2026 [FULL LIST]

The Federal Government has announced that starting January 1, 2026, new tax laws will come into effect, providing 50 exemptions and relief measures designed to support low-income earners, average taxpayers, and small businesses.

The reforms follow President Bola Tinubu’s signing of four tax reform bills on June 26, 2025, which include:

• Nigeria Tax Act, 2025 (NTA)

• Nigeria Tax Administration Act, 2025 (NTAA)

• Nigeria Revenue Service (Establishment) Act, 2025 (NRSEA)

• Joint Revenue Board (Establishment) Act, 2025 (JRBEA)

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, confirmed the development in a post on X. He said:

“From January 1, 2026, the new tax laws will provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses.”

Below is the full list of exemptions and reliefs:

Personal Income Tax / PAYE

1. Individuals earning the national minimum wage or less – exempt

2. Annual gross income up to ₦1,200,000 (~₦800,000 taxable) – exempt

3. Reduced PAYE for those earning annual gross income up to ₦20 million

4. Gifts – exempt

Allowable Deductions & Reliefs for Individuals

5. Pension contributions to PFA

6. National Health Insurance Scheme contributions

7. National Housing Fund contributions

8. Interest on loans for owner-occupied residential housing

9. Life insurance or annuity premiums

10. Rent relief – 20% of annual rent (up to ₦500,000)

Pensions & Gratuities – Exempt

11. Pension funds and assets under the Pension Reform Act (PRA)

12. Pension, gratuity, or retirement benefits in line with PRA

13. Compensation for loss of employment up to ₦50 million

Capital Gains Tax (CGT) – Exempt

14. Sale of owner-occupied house

15. Personal effects or chattels up to ₦5 million

16. Sale of up to two private vehicles per year

17. Gains on shares below ₦150 million annually or gains up to ₦10 million

18. Gains on shares above exemption threshold if proceeds are reinvested

19. Pension funds, charities, and non-commercial religious institutions

Companies Income Tax (CIT) – Exempt

20. Small companies (turnover ≤ ₦100m; fixed assets ≤ ₦250m) – 0% tax

21. Eligible startups – exempt

22. Compensation relief – 50% additional deduction for salary increases, wage awards, or transport subsidies for low-income workers

23. Employment relief – 50% deduction for salaries of new employees retained for at least 3 years

24. Tax holiday – first 5 years for agricultural businesses

25. Gains from investments in labeled startups by venture capitalists, private equity funds, accelerators, or incubators

Development Levy – Exempt

26. Small companies exempt from 4% development levy

Withholding Tax – Exempt

27. Small companies, manufacturers, and agricultural businesses exempt from withholding tax on income

28. Small companies exempt from deduction on payments to suppliers

Value Added Tax (VAT) – 0% or Exempt

29. Basic food items

30. Rent

31. Education services and materials

32. Health and medical services

33. Pharmaceutical products

34. Small companies (≤ ₦100m turnover) exempt from charging VAT

35. Diesel, petrol, and solar power equipment – VAT suspended/exempt

36. VAT refund on assets/overheads to produce VATable or 0% VAT goods/services

37. Agricultural inputs – fertilizers, seeds, seedlings, feeds, and live animals

38. Purchase, lease, or hire of equipment for agricultural purposes

39. Disability aids – hearing aids, wheelchairs, braille materials

40. Transport – shared passenger road transport (non-charter)

41. Electric vehicles and parts – exempt

42. Humanitarian supplies – exempt

43. Baby products

44. Sanitary towels, pads, or tampons

45. Land and building

Stamp Duties – Exempt

46. Electronic money transfers below ₦10,000

47. Salary payments

48. Intra-bank transfers

49. Transfers of government securities or shares

50. All documents for transfer of stocks and shares