Understanding Tax Deductions & Reliefs
Deductions and reliefs legally reduce the amount of tax you pay. Many Nigerians don't claim what they're entitled to - don't leave money on the table!
Consolidated Relief Allowance (CRA)
This is automatic for everyone. You get the higher of:
- ₦200,000, OR
- 1% of your gross income
PLUS 20% of your gross income.
Example: On ₦5,000,000 income:
- Higher of ₦200,000 or ₦50,000 (1%) = ₦200,000
- Plus 20% of ₦5M = ₦1,000,000
- Total CRA: ₦1,200,000
Pension Contributions
- Deduct actual contributions to your RSA
- Maximum 8% of (basic + housing + transport)
- Must be with a registered PFA
National Housing Fund (NHF)
- 2.5% of basic salary
- Fully deductible
- Qualifies you for NHF mortgage loans
Life Insurance Premiums
- Premiums on life insurance policies
- Policy must be with a registered insurer
- Surrender value isn't deductible
NHIS Contributions
- National Health Insurance contributions
- Provides tax relief and healthcare coverage
Gratuity Contributions
- If your employer has a gratuity scheme
- Contributions are tax-deductible
Disability Relief
- Additional relief for persons with disabilities
- Requires certification
Dependent Relatives
- Relief for maintaining dependent relatives
- Children, elderly parents, etc.
How to Claim These Reliefs
For Employees
- Ensure HR has your pension, NHF details
- Submit life insurance certificates to HR
- Check your annual tax computation
For Self-Employed
- Include in your annual tax return
- Keep receipts and certificates
- Work with a tax professional for complex claims
Use Our Deduction Finder
Don't guess - use our Deduction Finder to:
- Answer simple questions about your situation
- See all reliefs you qualify for
- Calculate your potential tax savings
- Get tips on reliefs you're missing