As part of its ongoing fiscal policy reforms aimed at easing the burden on low-income earners and boosting business competitiveness, the Presidential Fiscal Policy and Tax Reforms Committee Chair, Taiwo Oyedele, has announced 50 new tax exemptions and reliefs scheduled to take effect from January 1, 2026.
The wide-ranging tax reliefs, contained in the Tax Reform Laws, form a major component of the government’s drive to promote inclusive economic growth, reduce inequality, and stimulate job creation across sectors.
According to details released by the Committee Chair on X, the new laws will restructure the current tax regime to favour low- and middle-income earners, micro, small, and medium-scale enterprises (MSMEs), startups, and key sectors such as agriculture, manufacturing, and technology.
Under the new provisions, individuals earning the national minimum wage or less will be fully exempted from paying Personal Income Tax (PAYE).
Similarly, annual gross incomes of up to N1.2 million, translating to a taxable income of about N800,000, will attract no tax.
The reforms also introduced a progressive PAYE structure that reduces tax obligations for those earning up to N20 million yearly.
