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NaijaphiliaBlog:
Here are the answers to your questions:

A. TAX FOR FREELANCERS
In Nigeria's new tax law, the taxation threshold has increased from ₦300,000 to ₦800,000 per year

That is, if your annual income is ₦800,000 or less, you pay zero tax.

Above that, progressive tax rates of 15-25% apply depending on your income.

Here is how you calculate it:
STEP 1: Convert all your earnings to naira. (NB: If you deal in investments such as Crypto, only your profits are taxable).

STEP 2: Calculate your tax by applying the below tax bands (if you know how to use MS Excel, it would come in handy):

₦0 - ₦800,000: 0% (tax-free)
₦800,001 - ₦3M: 15%
₦3M - ₦12M: 18%
₦12M - ₦25M: 21%
₦25M - ₦50M: 23%
Above ₦50M: 25%

STEP 3: File your tax returns. If you are filing for Lagos State, use this link:

https://etax.lirs.net/

B. STATE OF RESIDENCE
In Nigeria, state of residence for tax purposes is defined under the
Personal Income Tax Act (PITA) as the state where an individual has a "place of residence" or "principal place of residence" available for their domestic use on January 1st of the assessment year.

This is typically the state nearest to their workplace or usual home, determining which state collects their income tax.

Here are further explanations:

1. If an individual has multiple residences, the principal place of residence is the one closest to their place of work.

2. That state of residence has the right to tax an individual’s worldwide income.

3. Similar to international standards, a person is only considered to be a "taxable resident" in Nigeria if they are present in the country for at least 183 days in a 12-month period.

In your specific case, since you stay in both Lagos and Ogun, in which state did you live up to 183 days between 1st January and 31st December 2025? That is your state of residence.

I hope this helps.

Thank you very much

Available 24/7

I'm a freelancer, how can I fill that as the money I earn isn't static?

Also, I stay in both Lagos and Mowe. How will I go about the state of residence?

moscobabs:
Here’s a Step by Step Process to File your Personal Income Tax Annual Returned in Lagos

STEP 1: Get Your TIN (Tax Identification Number)
Go to Google and search:

Tax Identification Number in Nigeria

Open the Nigeria Revenue Service official portal: taxid.nrs.gov.ng

Enter your NIN

Enter your Date of Birth

Generate your TIN

This is your tax identity. Keep it safe.

STEP 2: Create Your Lagos Tax Account (LIRS)
Go to: etax.lirs.net

Create an account using:

Your BVN (recommended)

Your personal details

Then generate your:

Lagos Payer ID

Note:

Individuals = starts with N-

Companies = starts with C-

STEP 3: Login to Your Dashboard
Use:

Your newly created Payer ID

Your Password

STEP 4: File Your Annual Return
Click:

“File Annual Return”

VERY IMPORTANT (This is Where Many People Make Mistake)

If you earn:

₦100,000 per month

Do NOT enter ₦100,000.

Multiply it:

₦100,000 × 12 = ₦1,200,000

That is your annual income.

This applies to Salary Earners and Business Owners, including Freelancers or Content Creators… You are to pay from your Net Income.

STEP 5: Add Other Income (If Any)
You may see:

Rent

Business income

Dividends

If you have them, include them

If not, skip

STEP 6: Add Tax Relief (Very Important)
You may see:

Pension

Insurance

Mortgage

Add them if you have them

This will reduce your tax

STEP 7: Submit
After filling everything:

Click Submit

The system will calculate your tax automatically.

Here’s the Secret Many People Don’t Know

If your income is small…

You may pay:

Zero tax

But… if you don’t file at all…

You will pay penalty of ₦100,000 and a subsequent ₦50,000 for each of the following Month until you file your Annual Returned.

Now that deadline has been extended to: April 14, 2026

Don’t say:

“I will do it later…”

Do it now.

IN SIMPLE SUMMARY:

Get your TIN

Create your LIRS account

Calculate your annual income

Submit your return

That’s all.

The problem is not tax…

The problem is lack of understanding

Once you understand it…

Everything becomes simple.

https://share.google/35XzE31EEvaBxDNK4?fbclid=IwZXh0bgNhZW0CMTEAc3J0YwZhcHBfaWQPMjc1MjU0NjkyNTk4Mjc5AAEeyO5Gl5cDeC-uGuGMGEABfwFOTnjVfu_Sx_E8ie-OAFo1ETnPu5_Jd8Poeyk_aem_wlY7Hl3c4UWF5ypgl44oRA

Thank you for the information.

I'm a freelancer, how can I fill that as the money I earn isn't static?

Also, I stay in both Lagos and Mowe. How will I go about the state of residence?

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