Rent relief
Rent relief is a deduction Nigerian taxpayers can claim against income tax, worth 20% of annual rent paid, capped at ₦500,000 a year. It replaced the Consolidated Relief Allowance under the tax rules that took effect in 2026, and reduces taxable income before the bands apply.
Worked example
You pay ₦1,500,000 a year in rent. 20% of that is ₦300,000, which is below the ₦500,000 cap, so you claim ₦300,000. On a ₦6,000,000 salary, that cuts taxable income to ₦5,700,000 and saves ₦54,000 of tax at the 18% band.
Pay ₦3,000,000 rent and 20% would be ₦600,000, but the cap limits your claim to ₦500,000.
What changed
Before 2026, the main personal relief was the Consolidated Relief Allowance, calculated as the higher of ₦200,000 or 1% of gross income, plus 20% of gross income. The 2026 rules replaced that with rent relief, so guidance written for earlier years no longer describes the current position.
You need evidence of rent paid to claim it. Calculate yours.
More Nigerian tax terms
- Company Income Tax (CIT)
- Consolidated Relief Allowance (CRA)
- Development Levy
- Direct assessment
- FIRS (Federal Inland Revenue Service)
- Input VAT
- Minimum wage tax exemption
- Output VAT
- PAYE (Pay-As-You-Earn)
- Personal Income Tax (PIT)
- Tax Clearance Certificate (TCC)
- Tax Identification Number (TIN)
- Value Added Tax (VAT)
- Withholding Tax (WHT)
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