Discover the process of filing your personal income tax returns in Nigeria for the year 2026. This comprehensive guide outlines the steps for utilizing the LIRS e-Tax platform, including critical deadlines, potential penalties, and essential information you need to be informed.
The March 31 deadline for filing personal income tax returns is approaching, and it is essential to ensure that you file your personal income tax returns for 2025. Failing to meet this deadline will result in a penalty of ₦100,000 for the first month, followed by ₦50,000 for each subsequent month of delay in filing.In Post: AyobamiBlog Data Shop The process for filing returns is now entirely digitized, allowing you to complete your filings conveniently from your phone or computer, eliminating the need for long waits at tax offices.In this guide, we will provide you with a straightforward approach to filing your taxes online efficiently.Understanding how personal income tax operates in Nigeria.
Pay As You Earn (PAYE): Under the PAYE scheme, your employer is responsible for deducting tax from your monthly salary and remitting it to the State Internal Revenue Service. It is essential to file returns to verify the accuracy of these tax deductions.Direct Assessment: For those who are self-employed, landlords, or earn income from multiple sources, you will need to compute and remit your own tax liabilities. Annual returns must be filed and taxes paid by March 31 each year.Both PAYE and direct assessment necessitate the submission of annual returns. The primary distinction lies in who manages the monthly tax payments—either your employer or yourself.
Filing Your Tax Returns Personal income tax is managed by the State Internal Revenue Service rather than the Nigeria Revenue Service (NRS, previously known as FIRS). For individuals residing or working in Lagos, tax returns should be submitted through the LIRS e-Tax platform.
We have compiled a comprehensive list of tax filing websites for all 36 states and the FCT at the conclusion of this guide.Filing Your Tax Returns
1. Identify Your Tax Authority.For employees, tax returns should be filed with the Internal Revenue Service of your residing state. For self-employed individuals, you will file in your state of residence.
Members of the armed forces, law enforcement officials, and diplomats are required to file with the NRS.
2. Assess Your Taxable Income.When filing in 2026, you are reporting income earned in 2025. As a result, you will adhere to the previous tax structure, not the revised 2026 rates.Here’s the previous tax structure applicable to 2025 income:The tax regulations implemented on January 1, 2026, have modified the method of tax calculation. The first ₦800,000 of your annual income is exempt from tax. If your annual earnings are at or below this threshold, you will not incur any income tax liability. Note that this exemption applies solely to income earned from January 2026 onwards. The new rates will be applicable when you file in 2027 for your 2026 income.Here’s an overview of how the progressive tax system operates:
To determine your precise taxable income, aggregate all your revenue streams. This encompasses your salary, earnings from any side ventures, rental income, dividends, and any other funds accumulated over the year.You may deduct the following expenses before calculating your tax liability:- Pension contributions (8% of your pre-tax income)- National Housing Fund contributions (2.5% of your basic salary)- Life insurance premiums (up to ₦100,000)- Rent relief (20% of your rent, with a limit of ₦500,000)Maintain comprehensive records of all payments made for rent, pension contributions, and insurance premiums throughout the year. These deductions can significantly reduce your tax obligations.
3. Register on the LIRS e-Tax portal. If you already possess a taxpayer ID, proceed to the next step. If not, visit etax.lirs.net and select ‘Sign Up’ if you are filing in Lagos.
To obtain your taxpayer ID, you will require your Bank Verification Number (BVN) as well as your date of birth.
4. Sign InLog in using your taxpayer ID and password. Locate the menu button in the upper-left corner of your screen, navigate to Returns, then select My Tax Returns, and click on File Returns Here (the blue button in the upper-left corner).
5. Report Your IncomeFill out the form with the necessary information and attach all required documents.Year: Select 2025 if you are filing in 2026.Gross Salary: Enter the total amount you received before any deductions. If you did not receive a salary, leave this field blank.Other Income: Input the total for each category if you earned income from trading, commissions, or allowances.
Pension Contributions: To effectively minimize your taxable income, it’s essential to include your total pension contributions for the year. For employees, this typically amounts to 8% of your pre-tax annual income, with your employer contributing on your behalf. Make sure to review your pension contribution notifications—check your pension service provider’s platform, emails, or text messages—for the precise figure.
Annuities:These should be included as well, as they are deductible.
Gratuities:While gratuities aren’t subject to taxation, if you received a gratuity due to job loss, be aware that only the first ₦50 million is tax-exempt.
Foreign Income: Income such as dividends, interest, rent, or royalties generated abroad and officially transferred into Nigeria via banking channels is not taxable.
Dividends and Interest: All earnings from your investments and savings should be reported.
Accommodation and Rent: Please provide your residential address and the total rent paid for the year.Rental Income: If you are a landlord, please enter the total rental income received.Other Income: Click ‘Add Income’ to input details for any additional income sources not previously mentioned.Multiple Income Streams: Please list all sources of income here.Support Staff: Include information on any employees you have.Assets: List any land or other property owned.Ensure that all figures are accurate. The tax authority can verify your income through your BVN, banking records, and employer information.
6. Upload Supporting DocumentsTo claim allowances on your annual tax returns, please upload the necessary supporting documents:
Your account statement for the yearRent payment receipts or a tenancy agreement (for rent relief)Proof of pension contributionsProof of National Health Insurance Scheme, life assurance, National Housing Fund, gratuities or any other documents that support your income, relief, or deductionsMake sure all the documents are easy to read.
7. Review, submit, and pay.Review everything you’ve typed in and uploaded before you submit. Once you’re sure it’s correct, click Submit.The LIRS will calculate how much tax you owe. If you’ve already paid tax through PAYE or withholding tax during the year, that tax will be subtracted from the total tax you owe.If there’s a tax balance to pay, you can pay directly on the LIRS website with your debit card or at any of the banks listed on the website.
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8. Download your tax clearance certificate.After filing and paying, download your tax clearance certificate and keep it safe. You might need it to apply for loans or visas, bid for government contracts, or renew your international passport.
Avoid These Common Tax Filing MistakesFailure to Claim Rent Relief: Rent relief became available in 2026, offering significant savings. Ensure you have a receipt for your latest rent payment.Confusion About Consolidated Relief Allowance (CRA): The CRA has been phased out. Concentrate on securing rent relief instead.Neglecting to Report All Income: It’s essential to include every source of income before applying any deductions or tax bands.
Missing the Filing Deadline: Set a reminder for mid-February to ensure you meet the March 31 deadline.
Underreporting Income: Tax authorities have the means to verify your income via your BVN and bank accounts. Transparency is key.
Filing with the Incorrect Tax Authority: Employees should file in accordance with their employer’s location, while self-employed individuals file based on their residential address.
Get Ahead of Your Tax Obligations
Nigeria’s 2026 tax reforms have streamlined the process – individuals earning ₦800,000 or less are exempt from income tax. For those exceeding this threshold, taxes are applicable solely on actual earnings. This clarity eliminates confusion and underscores the importance of timely tax return submissions.Compile all necessary documents and ensure your figures are precise. A proactive approach is essential to successfully meet the March 31 deadline.State Tax Filing Resources in NigeriaEach Nigerian state operates its own Internal Revenue Service. Below are the official websites for all 36 states and the Federal Capital Territory (FCT):
State and IRS resources
• Adamawa State-http://ad-irs.adamawastate.gov.ng
• Akwa Ibom State-http://akirs.ak.gov.ng/
• Bayelsa State –http://bir.by.gov.ng/
• Borno State – http://birs.bo.gov.ng/menu/Tax-Filling
• Cross River State –http://crirs.crossriverstate.gov.ng/
• Delta State –http://deltairs.com/
• Jigawa State –https://jsirs.org.ng/
• Kano State – https://kirs.gov.ng/
• Katsina State –https://irs.kt.gov.ng/
• Nasarawa State –http://irs.na.gov.ng/
• Niger State –https://nigerigr.ngsirs.gov.ng/ orhttp://ngsirs.gov.ng/
• Ondo State –https://iondo.ondostate.gov.ng/register orhttp://odirs.ng/
• Plateau State –http://psirs.gov/
• Taraba State –https://mda.tarababir.gov.ng/ orhttps://tarabaitas.ng/login
• Zamfara State –http://irs.zm.gov.ng/
Ensure that you submit your application on your state’s official website.
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