Post 1: The ₦800k Tax Law — What It Means for Your Take-Home Pay Starting January 1, 2026 , the Nigeria Tax Reform Act will officially change how millions of Nigerians calculate their salaries. Here is the simple breakdown of who wins and who pays. 1. The "Zero Tax" Bracket If your total annual income is ₦800,000 or less (roughly ₦66,667 per month ), you are now 100% exempt from personal income tax. You keep every kobo you earn. This is specifically designed to provide "breathing room" for low-income earners struggling with inflation. 2. The New "Rent Relief" Deduction This is a game-changer for middle-income earners. You can now claim a 20% deduction on your annual rent , capped at ₦500,000 . Example: If you earn ₦5 million a year and pay ₦1 million in rent, you can deduct ₦200,000 from your taxable income, lowering the amount the government can tax. 3. More Money in Your Pocket Because the tax brackets have been widened, eve...
The "Deep Dive" Style "Beyond the headlines. Explore in-depth analysis of Nigerian politics, the hottest entertainment news, and the latest trends in fashion and lifestyle."