Tax guide
Rental Income Tax in Nigeria: Planning Guide
Estimate annual tax on rent received after expenses and mortgage interest, using individual income bands.
Short answer: Landlords estimate annual tax on net rental profit: gross rent minus allowable expenses and mortgage interest, then taxed using individual income bands.
What counts as rental income
Include rent received from residential or commercial property. Exclude one-off deposits unless treated as income under your records.
Allowable deductions
Typical planning inputs:
- Property management and maintenance
- Insurance and rates where allowable
- Mortgage interest (often a key relief for financed properties)
Keep invoices and tenancy agreements. Filing may require evidence beyond this estimate.
Relationship to WHT on rent
Tenants or agents may withhold tax on rent payments. WHT can be creditable against your annual liability. Model WHT separately in WHT mode if you receive rent subject to withholding.
Estimate rental tax
Open Staff Pay Tax Calculator — rental income mode.
Sources reviewed
- Nigeria Tax Act 2025 — property and employment income framework
- Staff Pay Tax Calculator rental assumptions (counsel-reviewed, September 2026)
Educational only. Short-let and complex property rules are not fully modelled.
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Estimate WHT on rent, professional fees, contracts, dividends, and other common payments before you pay.
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ReadRent Relief in Nigeria: How It Affects Your Tax Estimate
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