The Nigeria Tax Act 2025: What Every Freelancer Must Know
The new tax law is here. If you earn from Upwork, YouTube, or any foreign client, this affects you. Here's exactly what changed and what you need to do before March 31.
The Tax Law Has Changed
On June 26, 2025, President Bola Ahmed Tinubu signed four comprehensive Tax Reform Acts into law. These changes took effect on January 1, 2026 — which means they apply to you right now.
If you're a freelancer, content creator, or remote worker earning from international platforms, this is the most significant tax change in Nigeria's recent history.
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.
This includes:
2. The First ₦800,000 is Tax-Free
Here's the good news. Under the new Consolidated Relief Allowance (CRA), the first ₦800,000 of your annual income is completely tax-free.
What this means: If you earn less than ₦800,000 per year (~$530 USD), you owe nothing.
3. Tax Brackets Have Changed
For income above ₦800,000, here are the new brackets:
4. You Must Self-Assess and File
Unlike employees whose employers withhold taxes, freelancers must:
The deadline is March 31, 2026.
What You Need to Do
Step 1: Get a TIN (Tax Identification Number)
If you don't have a TIN, you need one. You can register at:
Step 2: Track Your Income
You need records of all income received in 2025 (if applicable) and 2026. This includes:
Step 3: Identify Your Deductions
You can reduce your taxable income with legitimate business expenses:
Step 4: Calculate Your Tax
This is where it gets complicated. You need to:
Or... you could use TaxJeje to do this automatically.
Step 5: File on TaxProMax
The government's filing portal is TaxProMax. You'll need your TIN and income records to file.
The Penalties for Not Filing
Don't ignore this. The penalties are real:
The Bottom Line
The new Nigeria Tax Act is not optional. If you're earning money as a freelancer or remote worker, you need to file by March 31, 2026.
The good news: With proper deductions, most freelancers owe less than they fear. The ₦800,000 exemption and deductible expenses can significantly reduce your liability.
Need help calculating your tax? TaxJeje was built exactly for this. Track your income, identify deductions, and get a clear picture of what you owe — all in one place.