Tax Exemptions & Reliefs
50 tax exemptions under Nigeria Tax Reform Laws 2025/2026
Key Thresholds to Remember
Showing 50 of 50 exemptions
Minimum Wage Exemption
Individuals earning national minimum wage or less are fully exempt from PIT
0%
≤₦800,000/year
Low Income Exemption
Annual gross income up to ₦1,200,000 (≈₦800,000 taxable after reliefs) is exempt
0%
≤₦1,200,000/year gross
Reduced PAYE Rates
Reduced PAYE rates for annual gross income up to ₦20 million
≤₦20,000,000/year
Gifts Exemption
Gifts received are exempt from personal income tax
Pension Contributions
Contributions to Pension Fund Administrator (PFA) are tax-deductible
NHIS Contributions
National Health Insurance Scheme contributions are tax-deductible
NHF Contributions
National Housing Fund contributions are tax-deductible
Housing Loan Interest
Interest on owner-occupied residential housing loans is deductible
Life Insurance Premiums
Life insurance or annuity premiums are tax-deductible
Rent Relief
20% of annual rent paid is deductible, up to ₦500,000 maximum
20% of rent
Max ₦500,000/year
Pension Funds Exemption
Pension funds under Pension Reform Act are exempt from tax
Pension/Gratuity Exemption
Pension and gratuity payments per Pension Reform Act are exempt
Employment Loss Compensation
Compensation for employment loss is exempt up to ₦50 million
≤₦50,000,000
Owner-Occupied House Sales
Gains from selling your owner-occupied house are exempt from CGT
Personal Chattels
Personal chattels worth up to ₦5 million are exempt from CGT
≤₦5,000,000
Private Vehicles
Sale of up to two private vehicles per year is exempt from CGT
2 vehicles/year
Share Gains (Small)
Share gains below ₦150M annually or gains up to ₦10M are exempt
≤₦150M/year or ≤₦10M gains
Reinvested Share Gains
Share gains above threshold are exempt if reinvested
Charitable Institutions CGT
Pension funds, charities, religious institutions (non-commercial) are exempt
Small Company Exemption
Small companies (turnover ≤₦100M, fixed assets ≤₦250M) pay 0% CIT
0%
≤₦100M turnover
Labeled Startups
Labeled startups receive CIT exemptions
Wage Increase Deduction
50% additional deduction for wage increases for low-income workers
50% extra deduction
New Employee Deduction
50% deduction for new employees retained 3+ years
50% deduction
Agricultural Tax Holiday
5-year tax holiday for agricultural businesses
0%
5 years
Venture Capital Gains
Venture capital gains in labeled startups are exempt
Development Levy Exemption
Small companies are exempt from Development Levy
WHT Exemption (Business Types)
Small companies, manufacturers, and agricultural businesses are exempt from WHT
Supplier Payment WHT
Small companies are exempt from supplier payment deductions
Basic Food Items
Basic food items are zero-rated for VAT
0%
Rent Exemption
Rent payments are exempt from VAT
Education Services
Education services and materials are zero-rated
0%
Health Services
Health and medical services are exempt from VAT
Pharmaceutical Products
Pharmaceutical products are zero-rated for VAT
0%
Small Company VAT Exemption
Small companies (≤₦100M turnover) are exempt from VAT
≤₦100M turnover
Fuel & Solar Exemption
Diesel, petrol, and solar equipment are suspended/exempt from VAT
VAT Refunds on Assets
VAT refunds available on assets used for VATable goods production
Agricultural Inputs
Fertilizers, seeds, feeds, and livestock are VAT exempt
Agricultural Equipment
Agricultural equipment lease, purchase, or hire is VAT exempt
Disability Aids
Disability aids and equipment are VAT exempt
Public Transport
Shared passenger road transport is VAT exempt
Electric Vehicles
Electric vehicles and parts are VAT exempt
Humanitarian Supplies
Humanitarian supplies are VAT exempt
Baby Products
Baby products are VAT exempt
Sanitary Products
Sanitary products are VAT exempt
Land and Building
Land and building transactions are VAT exempt
Small Transfers
Electronic transfers below ₦10,000 are exempt from stamp duty
<₦10,000
Salary Payments
Salary payments are exempt from stamp duty
Intra-bank Transfers
Transfers within the same bank are exempt from stamp duty
Government Securities
Government securities and shares transfers are exempt
Stock Transfer Documents
Stock and share transfer documents are exempt from stamp duty
Source: Presidential Fiscal Policy and Tax Reforms Committee (fiscalreforms.ng)
Effective January 1, 2026. Consult a tax professional for specific advice.