Master Your Freelance Taxes Under Nigeria’s 2026 Tax Act

If you freelance in Nigeria—graphic design, writing, software development, consulting—January 2026’s Tax Act changed how your income is taxed. FIRS is now monitoring bank thresholds, so it’s time to plan. Your net income is taxed in bands: the first ₦800,000 is tax-free; ₦800,001–₦3,000,000 at 15%; ₦3,000,001–₦12,000,000 at 18%; ₦12,000,001–₦25,000,000 at 21%; ₦25,000,001–₦50,000,000 at 23%; and above ₦50,000,000 at 25%. Maximize deductions: claim business expenses, up to 8% pension contributions, 20% rent relief (capped at ₦500,000), and life assurance premium (₦100,000 max). If your turnover exceeds ₦25,000,000, register for 7.5% VAT. Withheld tax credits (5% WHT) offset your PIT. Example: on ₦10,000,000 gross with ₦2,000,000 in expenses, ₦2,000,000 rent and ₦80,000 life cover, your chargeable income is ₦6,880,000, yielding about ₦1,028,400 in PIT—just a 10.3% effective rate. Has anyone filed as a freelancer yet? Share your FIRS experience.

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