Nigeria Tax Act, 2025 · NTA s.30
The reliefs that come off before tax
Pension, housing fund, health insurance, life assurance, mortgage interest, and 20% of rent paid capped at ₦500,000.
Who this lands on: Every individual taxpayer, and every employer working out PAYE.
Deductible before the bands are applied (NTA s.30): contributions to an approved pension scheme; National Housing Fund contributions; National Health Insurance contributions; premiums on a life assurance policy or deferred annuity on the taxpayer's own life or a spouse's; and interest on a loan for owner-occupied housing.
Rent relief is 20% of annual rent actually paid, capped at ₦500,000 — so ₦3,000,000 of rent gives the full cap, and ₦1,000,000 of rent gives ₦200,000.
The relief is on rent paid, so it needs evidence: a tenancy agreement or receipts, kept with the rest of the records.
Reliefs come off first, then the Fourth Schedule bands run on what is left.