Statutory and legislative payroll changes in Nigeria, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
Nigeria Tax Act: new PAYE bands and rent relief
Effective 1 January 2026
The Nigeria Tax Act takes effect on 1 January 2026 with six bands: first N800,000 at 0%, then 15%, 18%, 21%, 23% and 25% above N50,000,000.
For the employer
- Recompute PAYE: next N2,200,000 at 15%, next N9,000,000 at 18%, next N13,000,000 at 21%, next N25,000,000 at 23%, above N50,000,000 at 25%.
For the employee
- Consolidated relief allowance replaced by rent relief of 20% of annual rent, capped at N500,000.
In practice: Taxable income N3,000,000: N800,000 x 0% + N2,200,000 x 15% = N330,000.
Source: PwC Worldwide Tax Summaries - Nigeria, Individual, Significant developments · Last verified 1 October 2026
Edo State: employer annual tax returns due 31 January under NTAA 2025
Effective 2026
Citing the Nigeria Tax Administration Act (NTAA) 2025, the Edo State Internal Revenue Service required employers to file 2026 annual tax returns not later than 31 January 2026.
For the employer
- Edo State employers file annual returns (Tax Forms H1 and H3) by 31 January 2026.
- Non-compliance attracts an administrative penalty of N1,000,000 or imprisonment for a term not exceeding three years.
For the employee
- Individual taxable persons file by 31 March 2026; late filing attracts N100,000 in the first month and N50,000 for each subsequent month.
This is an Edo State (EIRS) notice and applies to employers and taxable persons in Edo State; other states administer PAYE for their own residents.
Source: Edo State Internal Revenue Service - Notice of demand for employers and employees to file annual PAYE and individual tax returns · Last verified 1 October 2026