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How to File Your Personal Income Tax Returns in Nigeria  

The clock is ticking and March 31,2026 is closer than you think. That is the deadline to file your personal income tax returns for 2025. It may feel like something you can push aside for now… but missing it comes with a cost.  You face a fine of ₦100,000 for the first month, and then ₦50,000 for every additional month you delay. 

That is not small money.  The good news is that you do not need to stand in long queues or visit any office anymore.  You can file your tax right from your phone or laptop, wherever you are. 

In this guide, I walk you through the process in a simple, stress-free way so you can get it done quickly and move on with peace of mind. 

 

What Is Personal Income Tax Returns? 

Every year, the government wants a full picture of your income.  Not just your salary… but everything you earned from salary,  business income, freelancing, side hustle money, rent or even investment income. So you “report” all of this to the government.  That report is called your tax returns.

Who Should File Personal Income Tax in Nigeria? 

This is where many people make costly assumptions. Under NIGERIA TAX ACT, 2025, every individual earning income is expected to file. Let us break it down clearly:

  1. If you are a salary earner(employee)
  2. if you are self-employed or run a POS business or any other business
  3. If you have multiple sources of income

Filing your own income tax returns is good for record purposes and getting a Tax Clearance Certificate (very important for loans, visas, etc.)  

Where to file your tax returns

Personal income tax goes through your State Internal Revenue Service, not the Nigeria Revenue Service (NRS, formerly FIRS).

Lagos residents and workers file tax returns on the LIRS e-Tax website.  You file tax in the state where you live, not your state of origin. Here is a list of all the states  

 How to File Your IncomeTax Return in Nigeria 

Step 1: Identify Where to File Your Tax

Before anything else, you need to know where to submit your tax return.

  • If you are employed, you file with the tax authority in the state where you work or live.
  • If you run a business or work for yourself, you file in the state where you reside.

If you are in Lagos, you will file through the
Lagos State Internal Revenue Service (LIRS) LIRS e-Tax portal.

However, members of the armed forces, police, and foreign service officers file through the relevant federal tax authority.

Step 2: Work Out Your Taxable Income

Although you file your tax return in 2026, you are actually declaring the money you earned in 2025. To get your taxable income, start by adding all the money you made.  To get an idea of what it looks like based on the new tax reform effective from January 1, 2026:

  • The first ₦800,000 you earn is tax-free
  • If you earn ₦800,000 or less, you do not pay income tax

Reduce Your Tax with Deductions

Before calculating your tax, you can subtract certain expenses like:

  • Pension contributions (usually 8% of your income)
  • National Housing Fund (NHF) contributions (2.5% of basic salary)
  • Life insurance (up to ₦100,000)
  • Rent relief (20% of your rent, capped at ₦500,000)

 These deductions reduce how much tax you pay. Just keep records of them

 Step 3: Create an Account on the Tax Portal

  • If you already have a Tax Identification Number (TIN), move to the next step
  • If not, sign up to create one

You will need:

  • Your Bank Verification Number (BVN) or National Identity Number (NIN)
  • Your date of birth

 

Step 4: Log Into Your Account

Once your account is ready:

  • Sign in with your TIN and password
  • Open the menu
  • Click on Returns
  • Select My Tax Returns
  • Then click File Returns Here

Step 5:  Enter Your Income Details

Here is what you will provide:

  • Year: Select 2025 (if filing in 2026)
  • Gross salary: Your total earnings before deductions
  • Other income: Side hustles, commissions, or allowances
  • Pension contributions: Usually about 8% of your income
  • Dividends and interest: Earnings from savings or investments
  • Rental income: If you earn from property
  • Foreign income: If applicable

You will also include:

  • Rent you paid (for relief claims)
  • Any additional income sources not listed
  • Assets like land or property
  • Details of any staff you employ

 Make sure everything is accurate. Tax authorities can verify your information through your BVN, bank records, and employer.

Step 6: Upload Supporting Documents

To support your claims, upload clear copies of:

  • Your bank statement
  • Rent receipts or tenancy agreement
  • Pension contribution proof
  • NHF or insurance records
  • Any other document that supports your income or deductions

 Clear documents help avoid delays or questions later.

Step 7: Review, Submit, and Pay

Before you click submit on the portal, remember to double-check all figures and confirm your documents are correct before you hit  ”submit”.

The tax system will calculate what you owe.

  • If your employer already deducted tax (PAYE), it will be subtracted
  • If there is a balance left, you can pay online or through approved banks

 

Step 8: Download Your Tax Clearance Certificate

After submitting and paying:  Download your Tax Clearance Certificate (TCC). Keep it safe. You may need it for:

  • Loan applications
  • Visa processing
  • Government contracts
  • Passport renewal

 

Bottomline

Filing your personal Income tax returns is not about being rich. It is about being responsible.  It is about protecting your future. It is about staying on the safe side of the law. Do not wait until the last minute  as late filing can lead to errors, system issues  or even penalties . 

 

 

 

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