The process of personal Income Tax changed under the Nigeria Tax Act (NTA) 2025, which takes effect on January 1, 2026 and the deadline for filing has been fixed for March 31st, 2026
It states that if you earn money in Nigeria, you must submit a personal income tax return. This includes salaried workers, self-employed professionals, freelancers, traders, landlords, and anyone who receives rental income, investment returns, or business profits. Even if your income is less than ₦800,000 and you owe zero tax, you must still file a nil return.
Individuals filing under direct assessment (self-employed, sole traders, and freelancers) must file their annual tax return by March 31 of each year for income earned in the previous year. PAYE employees receive monthly deductions and remittances on the 10th of each month. 
Failure to file may result in penalties of ₦100,000 for the first month and ₦50,000 for each subsequent month of failure, according to LIRS.
Steps on How to Get Personal Income Task Return In Nigeria
1. Get your Tax Identification Number (TIN)
To file, every individual must have a valid TIN. If you don’t have one, you can get one at the your State’s Internal Revenue Service office or online. Individuals’ personal income tax is administered by their state, for example, LIRS in Lagos. You can also sign up through the FIRS JTB portal.
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2.Gather your records
Collect all previous year’s income documentation, including payslips or employment letters, bank statements, freelance or consulting invoices, rental income receipts, investment statements, and any other income records.
Also, gather receipts for deductible expenses, such as rent, pension statements, NHIS and NHF contributions, and life insurance premiums.
3.Calculate your chargeable Income
Begin with your total gross yearly income. Then, subtract your allowed deductions: Employee pension contribution (8% of basic plus housing + transport).
Rent relief: Up to a maximum of ₦500,000, you can receive 20% of your annual rent.
NHIS, NHF, and life insurance premiums (documented). Your chargeable income is what remains after these deductions.
4. Apply the 2026 tax bands
Personal income tax is calculated progressively on chargeable income under the NTA 2025. The first ₦800,000 will be tax-free. Next is ₦2,200,000 (800k to 3m) at 15%. Next is ₦9,000,000 (₦3m to ₦12m) at 18%. The next ₦13,000,000 (₦12m to ₦25m) is at 21%. Next, ₦25,000,000 (between ₦25m and ₦50m) at 23%. Any amount exceeding ₦50,000,000 is subject to a 25% fee.
5. File your return
File through your state’s IRS website or the FIRS TaxPro-Max platform. Log in, choose the tax year, and fill out your income declaration. Enter your total income and deductions, and the system will calculate your liability. If you are self-employed, you must file for direct assessment.
6. Pay your tax
Create a Remita Retrieval Reference (RRR) for your tax payment. Pay with the RRR through your bank (online or in a branch). Keep the payment confirmation; it will be needed for Tax Clearance Certificate.
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