FG set to implement new tax laws with major reliefs for low-income earners(FULL LIST)

The federal government has announced that new tax laws offering wide-ranging reliefs and exemptions for low-income earners, middle-class taxpayers, and small businesses will take effect from January 1, 2026.

The reforms, which include 50 targeted tax exemptions, are designed to reduce the financial burden on vulnerable groups and stimulate economic growth.

The laws are the Nigeria Tax Act, 2025 (NTA), the Nigeria Tax Administration Act, 2025 (NTAA), the Nigeria Revenue Service (establishment) Act, 2025 (NRSEA), and the Joint Revenue Board (establishment) Act, 2025 (JRBEA).

According to Wale Edun, minister of finance and coordinating minister of the economy, the new tax laws will improve business growth and boost the purchasing power of Nigerians.

In a post on X on Monday, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, said the 50 tax exemptions and reliefs will benefit Nigerians under the new tax regime.

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

Here is a full list of the exemptions and reliefs

PERSONAL INCOME TAX (𝐏𝐀𝐘𝐄)

1. Individuals earning the national minimum wage or less (exempt)

2. Annual gross income up to N1,200,000 (about N800,000 taxable income) is exempted.

3. Reduced PAYE tax for those earning N20 million annually

4. Gifts (exempt)

ALLOWABLE DEDUCTIONS AND RELIEFS FOR INDIVIDUALS

5. Pension contribution to pension fund administrators (PFA)

6. National health insurance scheme

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7. National housing fund (NHF) contributions

8. Interest on loans for owner-occupied residential housing

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9. Life insurance or annuity premiums

10. Rent relief – 20 percent of annual rent (up to N500,000)

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

13. Compensation for loss of employment up to N50 million

CAPITAL GAINS TAX

14. Sale of an owner-occupied house

15. Personal effects or chattels worth up to N5 million

16. Sale of up to two private vehicles per year

17. Gains on shares below N150 million per year or gains up to N10 million

18. Gains on shares above exemption threshold if the proceed is reinvested

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

COMPANIES INCOME TAX

20. Small companies (turnover not more than N100 million and fixed assets not more than N250 million) pay zero percent tax

21. Eligible (labelled) startups

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

23. Employment relief: 50 percent deduction for salaries of new employees hired and retained for at least three years.

24. Five-year tax holiday for agricultural businesses (crop production, livestock, dairy, etc.)

25. Gains from investment in labelled startups by venture capitalist, private equity fund, accelerators or incubators.

DEVELOPMENT LEVY

26. Small companies are exempted from 4 percent development levy

𝐖ITHHOLDING TAX

27. Small companies, manufacturers and agricultural businesses are exempted from withholding tax deduction on income

28. Small companies are exempt from deduction on payments to suppliers

𝐕ALUE ADDED TAX (𝐕𝐀𝐓) – (0% OR EXEMPT)

29. Basic food items – zero percent VAT

30. Rent – exempt

31. Education services and materials – zero percent VAT

32. Health and medical services

33. Pharmaceutical products – zero percent VAT

34. Small companies (less than N100m turnover) – exempt from charging VAT

35. Diesel, petrol, and solar power equipment – VAT suspended or exempted

36. Refund of VAT on assets and overheads used to produce VATable or zero percent VAT goods and services.

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

38. Purchase, lease or hire of agricultural equipment

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 N10,000

47. Salary payments

48. Intra-bank transfers

49. Transfers of government securities or shares

50. Documents for transfer of stocks and shares

INFLUENCERS TO BE TRAINED ON ACCURATE TAX EDUCATION

Oyedele also urged Nigerians to nominate content creators who have been educating their audiences about the country’s new tax reform laws or those they believe should take up the role.

He said the top 20 creators with the highest number of nominations will be selected for a special training designed to help them share accurate, balanced, and useful tax information with their followers.

“Misinformation spreads fast, often to the author’s benefit but to the audience’s loss. Accurate information may travel slower, but it empowers everyone, and earns lasting trust,” he said.

The fiscal policy chairman said nominations can be made by tagging or mentioning preferred influencers or by filling out the nomination form at forms.gle/15kyv1ffx7tzTL, adding that the process closes on November 9, 2025.