What changed between the 2025 and 2026 Nigerian tax rules?

From 2026 the Consolidated Relief Allowance is abolished and replaced by rent relief, a ₦800,000 zero band is introduced, and the minimum tax on individuals is removed. Rates and bands were also restructured, so the same salary can pay a different amount of tax under each regime.

Am I better or worse off under the 2026 reform?

It depends on your circumstances. Renters generally gain from the new rent relief, while homeowners and anyone paying no rent lose the old Consolidated Relief Allowance without a direct replacement. Comparing your own figures under both years is the only reliable way to tell.

Was the Consolidated Relief Allowance removed?

Yes. The Consolidated Relief Allowance is abolished from 2026. In its place, renters can claim rent relief of 20% of annual rent, capped at ₦500,000.

IndividualUpdated 15 January 2026

Old vs new regime comparison

The same income, taxed both ways. Enter your details once and see exactly what the 2026 reform did to your bill.

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Your pay

Basic salary a year

Housing allowance a year

Transport allowance a year

Other allowances a year

Bonuses a year

Rent

Annual rent paid

Enter 0 if you own your home or live rent-free.

Deductions and reliefs

Pension contribution

8% of basic + housing + transport. Compulsory for most employees, and deductible.

NHF contribution

2.5% of basic salary. Compulsory in the public sector, voluntary for private-sector employees — so this is off by default.

NHIA contribution (annual)

Life assurance premium (annual)

Mortgage interest (annual)

Enter your pay on the left. We will run it through the 2025 rules and the 2026 rules and show you the difference.

Who wins and who loses

The reform swapped one relief for another. The Consolidated Relief Allowance went to everyone; rent relief goes only to people who pay rent. So the split is roughly this: renters and low earners tend to come out ahead, helped by the ₦800,000 zero band and the abolition of minimum tax. Higher earners who own their homes tend to come out behind, because they lost an allowance and got nothing in its place. This tool exists to tell you which of those you are, in one number, rather than leaving you to guess.

Common questions

What changed between the 2025 and 2026 Nigerian tax rules?: From 2026 the Consolidated Relief Allowance is abolished and replaced by rent relief, a ₦800,000 zero band is introduced, and the minimum tax on individuals is removed. Rates and bands were also restructured, so the same salary can pay a different amount of tax under each regime.
Am I better or worse off under the 2026 reform?: It depends on your circumstances. Renters generally gain from the new rent relief, while homeowners and anyone paying no rent lose the old Consolidated Relief Allowance without a direct replacement. Comparing your own figures under both years is the only reliable way to tell.
Was the Consolidated Relief Allowance removed?: Yes. The Consolidated Relief Allowance is abolished from 2026. In its place, renters can claim rent relief of 20% of annual rent, capped at ₦500,000.