How to File Your Personal Income Tax in Nigeria: A Step-by-Step Compliance Guide

Filing your Personal Income Tax (PIT) in Nigeria is a legal requirement that ensures individuals contribute their fair share to national development while avoiding penalties for non-compliance. Whether you’re a salaried employee, self-employed, or earning from multiple sources, understanding the filing process is crucial.

With the annual PIT filing deadline set for March 31st, this guide will walk you through everything you need to know—who needs to file, how to do it, and where to find the right resources for compliance.

Who Needs to Pay Personal Income Tax in Nigeria?

In Nigeria, every taxable individual is required to file their Personal Income Tax returns, but not everyone needs to make additional tax payments. Here’s how it works:

1. Employees under PAYE: If you work for an employer, your taxes are likely already deducted monthly through the Pay-As-You-Earn (PAYE) system and remitted on your behalf. However, you’re still required to file your annual tax returns to confirm compliance. You won’t need to make additional payments unless you have other income sources.

   Calculate your PAYE with our free payroll calculator

2. Self-employed individuals, freelancers, and business owners: Since you don’t have an employer deducting taxes for you, you must calculate and pay your taxes yourself before filing.
3. Individuals with additional income streams: If you earn from side businesses, rental properties, investments, or freelance work, you must declare all income sources and pay any outstanding tax obligations.

Step-by-Step Guide to Filing Your Personal Income Tax in Nigeria

Step 1: Determine Your Tax Residency

• Resident taxpayers: If you live and earn in Nigeria for at least 183 days in a year, you're required to pay PIT to the tax authority of your state of residence.
• Non-resident taxpayers: If you earn income from Nigeria but reside elsewhere, you may still have tax obligations.

Read more: Are You Being Over-Taxed? How to Spot Errors in Your PAYE Deductions

Step 2: Calculate Your Taxable Income

Your taxable income includes:

• Salaries, wages, bonuses, and allowances
• Profits from business or freelancing
• Rental income from properties
• Investment returns (dividends, interest, etc.)

Tax Rates for Individuals in Nigeria

Personal Income Tax is calculated on a graduated scale as follows:

 Minimum wage:

Individuals with gross income less than or equal to the minimum wage (currently ₦70,000 on a monthly basis), are not required to comply with personal income tax remittance. However, such individuals are not exempted from PIT filing.

Step 3: Pay Your Taxes

Once your tax liability is calculated, payments can be made via:

• Online payment portals of state tax agencies
• Bank deposits (using state IRS payment codes)
• Remita or state-specific revenue collection systems

Step 4: Prepare and File Your Annual Tax Return

By law, individuals must file their annual tax returns on or before March 31st every year. To do this:

Gather necessary documents:

• Payslips or financial statements
• Bank statements showing business income
• Rental agreements (if applicable)
• Investment statements

File your PIT returns through:

• E-filing platforms of state IRS
• Physical submission at the State IRS office

Download the Taxpayer Self-Assessment Form (Form A) from your state’s IRS website and complete the form with details of your income, allowable deductions, and reliefs.

Step 5: Obtain Your Tax Clearance Certificate (TCC)

A Tax Clearance Certificate (TCC) is proof that you’ve paid your taxes. It is required for:

• Business registration and government contracts
• Visa applications
• Loan approvals
• Property transactions

Read more: Technology as the Key to Combating Payroll Fraud and Financial Leakages in Nigeria's Public Sector

Penalties for Late or Non-Filing

Failure to file your annual PIT returns by March 31st may result in:

• ₦50,000 penalty for individuals
• Additional fines and legal actions for tax evasion

State-Specific PIT Filing Platforms

Each Nigerian state has its own Internal Revenue Service (IRS) that handles Personal Income Tax. Below are the official IRS websites for all 36 states and the FCT where you can file your taxes:

Check your state’s IRS website for online filing and payment options

Conclusion

Filing your Personal Income Tax (PIT) is not just a legal obligation—it’s also crucial for accessing financial and business benefits. By following this step-by-step guide, you can stay compliant, avoid penalties, and contribute to national development.

Don’t wait until the last minute! File your PIT before March 31st to stay compliant. Bookmark this guide & share it with others to help them stay tax-compliant in Nigeria!