50 Tax Exemptions Nigerians Will Enjoy From 2026 | Full List & Breakdown

From January 1, 2026, millions of Nigerians  especially low-income earners, retirees, and small businesses  will benefit from new tax waivers and relief measures under Nigeria’s tax reform laws.

The Chairman of the Presidential Fiscal Policy & Tax Reforms Committee, Taiwo Oyedele, released the full breakdown, detailing 50 categories of exemptions aimed at reducing tax pressure and boosting economic growth.

Personal Income Tax / PAYE – Who Won’t Pay Income Tax

Tax waivers for low-income earners and minimum-wage earners:

1. Earners at or below minimum wage – no tax

2. Individuals earning up to ₦1.2m yearly – no tax

3. Individuals earning up to ₦20m per year – tax relief applies

4. Gifts received – not taxable

Approved Deductions to Reduce Your PAYE

Expenses you can subtract before tax is calculated:

5. Pension contributions

6. NHIS health contributions

7. National Housing Fund (NHF) contributions

8. Interest on home-ownership loans

9. Life insurance / annuity contributions

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

Pension & Retirement Income – Tax-Free

Benefits for retirees and end-of-service payouts:

11. Pension funds and assets

12. Pension, gratuity & retirement payments

13. Compensation for job loss – up to ₦50m tax-free

Capital Gains Tax – Exemptions When Selling Assets

No tax on certain asset sales:

14. Sale of your personal residential home

15. Personal items worth up to ₦5m

16. Sale of up to two personal vehicles per year

17. Gains on small share sales (₦150m / ₦10m thresholds)

18. CGT waived if you reinvest gains into shares

19. Pension funds, charities & religious bodies – where non-commercial

Companies Income Tax – Boost for Small Businesses

Support for job creation and startups:

20. Small firms with ≤ ₦100m turnover – no CIT

21. Registered startups – exempt

22. Extra tax deduction for companies that increase low-income salaries

23. Tax deduction for firms hiring & keeping staff for 3 years

24. Agricultural companies – 5-year tax holiday

25. Venture investors in certified startups – exempt

Development Levy

26. Small companies – exempt

Withholding Tax – Reduced for SMEs

Ease of cash flow for small companies:

27. Small firms, manufacturers & Agric businesses – exempt on income

28. Small firms exempt on payments to suppliers

VAT – Zero VAT on Essentials

Basic needs remain tax-free:

29. Basic food items

30. Residential rent

31. Education services

32. Healthcare services

33. Medicines & pharmaceuticals

34. Small firms ≤ ₦100m turnover – don’t charge VAT

35. Diesel, petrol, solar equipment

36. VAT refund allowed on production capital items

37. Fertiliser, seeds, animal feed & livestock

38. Hire of agricultural machinery

39. Disability aids (e.g., wheelchairs)

40. Public road transport (buses)

41. Electric vehicles & parts

42. Humanitarian aid items

43. Baby products

44. Sanitary pads & tampons

45. Land and building transactions

Stamp Duty – Charges Removed

Transfers and documents exempt from duty:

46. Transfers below ₦10,000

47. Salary transfers

48. Transfers within same bank

49. Transfers of govt securities & shares

50. Documents for share transfers

These tax exemptions and relief measures are part of the Federal Government’s fiscal agenda for 2024–2026 and will begin January 2026.