The Tax Law Has Changed
On June 26, 2025, President Bola Ahmed Tinubu signed four comprehensive Tax Reform Acts into law[1]. These changes took effect on January 1, 2026 — which means they apply to you right now.
The four acts are:
- Nigeria Tax Act (NTA) — consolidates all major tax legislation
- Nigeria Tax Administration Act (NTAA) — governs tax compliance and enforcement
- Nigeria Revenue Service Act (NRSA) — transforms FIRS into NRS
- Joint Revenue Board Act (JRBA) — coordinates federal and state tax authorities
If you're a freelancer, content creator, or remote worker earning from international platforms, this is the most significant tax change in Nigeria's history[2].
What's New?
1. Foreign Income is Now Explicitly Taxable
Before 2025, there was ambiguity about whether income from Upwork, Fiverr, YouTube AdSense, or direct foreign clients was taxable. That ambiguity is gone.
The new law is clear: All income earned by Nigerian residents, regardless of where it comes from, is taxable[3].
This includes:
- Upwork, Fiverr, Toptal earnings
- YouTube AdSense revenue
- Direct client payments in USD, EUR, or GBP
- Remote salary from foreign companies
- Crypto trading profits
2. The First ₦800,000 is Tax-Free
Here's the good news. Under the new NTA 2025, the first ₦800,000 of your annual chargeable income is taxed at 0%[4].
What this means: If you earn less than ₦800,000 per year (~$500 USD at current rates), you owe nothing in personal income tax.
This is a major shift from the old system where everyone paid something from the first naira. The new law provides significant relief to low- and lower-middle-income earners[5].
3. New Progressive Tax Brackets
For income above ₦800,000, here are the new tax brackets under NTA 2025[6]:
| Annual Chargeable Income | Tax Rate |
| First ₦800,000 | 0% |
| ₦800,001 – ₦3,000,000 | 15% |
| ₦3,000,001 – ₦12,000,000 | 18% |
| ₦12,000,001 – ₦25,000,000 | 21% |
| ₦25,000,001 – ₦50,000,000 | 23% |
| Above ₦50,000,000 | 25% |
Important: These rates apply to chargeable income — your gross income minus allowable deductions and reliefs.
4. CRA is Abolished — Rent Relief Replaces It
Under the old law, the Consolidated Relief Allowance (CRA) reduced your taxable income by 21%+ automatically. The NTA 2025 abolishes CRA[7].
It's replaced by a new Rent Relief:
- 20% of your annual rent paid, OR
- ₦500,000 maximum — whichever is lower
If you're a homeowner or don't pay rent, you don't get this relief. Your only automatic relief is the 0% rate on the first ₦800,000[8].
5. You Must Self-Assess and File
Unlike employees whose employers withhold taxes, freelancers must:
- Calculate their own tax liability
- File their own returns
- Pay directly to the government
The deadline for 2026 income is March 31, 2027.
What You Need to Do
Step 1: Get Your Tax ID
If you don't have a Tax ID, you need one. Register at:
- Tax ID Portal: taxid.nrs.gov.ng — use your NIN to retrieve your 13-digit Tax ID
- Or visit any NRS office with your NIN/BVN
Step 2: Track Your Income
You need records of all income received. This includes:
- Payment screenshots or statements
- Currency conversion rates at time of receipt (use CBN rates)
- Invoice records
Step 3: Identify Your Deductions
You can reduce your taxable income with legitimate business expenses[10]:
- Internet costs
- Software subscriptions
- Equipment (laptop, phone, camera)
- Home office costs
- Professional development
- Pension contributions (8% of qualifying income)
Step 4: Calculate Your Tax
This is where it gets complicated. You need to:
- Convert all foreign currency income to Naira (CBN rates)
- Total your annual income
- Subtract allowable deductions
- Apply the rent relief (if applicable)
- Apply the correct tax brackets
Or... you could use TaxJeje to do this automatically.
Step 5: File on NRS Rev360
The government's filing portal is NRS Rev360: selfservice.nrs.gov.ng[11] — the platform that replaced TaxProMax in April 2026. You log in with your existing TaxProMax credentials (or your Rev360 login if you've already set one up).
You'll need your TIN and income records to file.
The Penalties for Not Filing
Don't ignore this. The penalties under the new NTAA are significant[12]:
| Violation | Penalty |
| Not registering for TIN | ₦50,000 + ₦25,000/month |
| Not filing returns | ₦100,000 first month + ₦50,000/subsequent month |
| False declaration | Up to ₦1,000,000 or imprisonment |
Directors and officers can also be held personally liable for corporate tax offenses.
The Bottom Line
The Nigeria Tax Act 2025 is not optional. If you're earning money as a freelancer or remote worker, you need to file by March 31, 2027 (for 2026 income).
The good news: With the new 0% bracket on the first ₦800,000 and proper deductions, most middle-income freelancers will actually pay less than under the old system[13].
Need help calculating your tax? TaxJeje was built exactly for this — using the actual NTA 2025 rules. Track your income, identify deductions, and get a clear picture of what you owe.
References
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