Sell a plot or a house in Nigeria in 2026 and the profit is taxed on a sliding scale from 0% to 25%, not the old flat 10%. The first ₦800,000 (~$578) of your yearly income is tax-free, and your main home plus up to one acre around it is exempt once in a lifetime. A ₦30 million (~$21,660) gain, with no other income, works out to roughly ₦5.83 million (~$4,209) in tax. (Figures at ₦1,385/$, October 2026.)
Look, most people budget for agent fees, legal fees and Governor’s Consent when they buy. Almost nobody budgets for what the taxman takes when they sell. Since 1 January 2026 the rules have changed, and if you are a Nigerian abroad sitting on family land, a first-time owner planning to flip, or a small developer selling off plots, this is the bill you need to see coming.
How is capital gains tax on land calculated in Nigeria now?
Capital gains on land are now added to your other income for the year and taxed at the personal income tax bands, which run from 0% to 25%. The gain is what you sold for, minus what you paid and the allowable costs of buying and selling, such as legal fees, valuation fees and stamp duty. That is how the new Nigeria Tax Act works for individuals, as Bloomberg Tax and Mondaq describe it.
Two details catch people out. Inflation is not factored in, so a plot you bought cheaply years ago shows a big “gain” even if much of it is just naira losing value. On losses, PwC Nigeria reads the new law as expressly allowing individuals to deduct capital losses when working out their total taxable income, while the position for companies is unclear. If you sold another asset at a loss in the same year, raise it with your tax adviser.
| Yearly taxable income (₦) | ~ USD | Rate |
|---|---|---|
| 0 – 800,000 | $0 – $578 | 0% |
| 800,001 – 3,000,000 | $578 – $2,166 | 15% |
| 3,000,001 – 12,000,000 | $2,166 – $8,664 | 18% |
| 12,000,001 – 25,000,000 | $8,664 – $18,051 | 21% |
| 25,000,001 – 50,000,000 | $18,051 – $36,101 | 23% |
| Above 50,000,000 | Above $36,101 | 25% |
Bands as reported by Mondaq (5 January 2026) on the Nigeria Tax Act 2025. Converted at ₦1,385/$, October 2026.
What would you actually pay? Three worked examples
These are our own simplified calculations: we assume the gain is your only income that year and ignore any other reliefs. Treat them as a ballpark, not a tax bill.
| Your taxable gain | Tax (approx.) | ~ USD | Effective rate |
|---|---|---|---|
| ₦10,000,000 (~$7,220) | ₦1,590,000 | ~$1,148 | 15.9% |
| ₦30,000,000 (~$21,660) | ₦5,830,000 | ~$4,209 | 19.4% |
| ₦60,000,000 (~$43,321) | ₦12,930,000 | ~$9,336 | 21.6% |
Watch out: the gain is not the sale price. Selling a ₦50 million plot you bought for ₦40 million is a ₦10 million gain (less allowable costs), not ₦50 million. Keep your purchase receipt, your lawyer’s invoice and your stamp duty receipt. No paper trail, no deduction.
Is your own home exempt from capital gains tax?
Yes, once. Per Mondaq, gains from selling your main home and the land around it, up to one acre, are exempt once in a lifetime. A second house, a rental, or an investment plot does not qualify. So if you are in the UK, US or Canada and selling the family compound you do not live in, do not assume the exemption covers you. Ask a Nigerian tax adviser whether it applies to your situation before you list.
Selling or buying land from abroad? Before any money moves, run the checks on the title, the seller and the property. Our free Land Verification Checklist walks you through it.
What if you inherited the land?
According to Bloomberg Tax, inherited assets get a fresh starting value: the cost basis resets to market value on the date of death, so only growth after you inherit is taxed. If you are inheriting family land, get a valuation done near the date of death and keep it. Without it, you will struggle to show what the starting value was.
Does the company rate matter to small developers?
If you sell through a limited company, a different rate applies. PwC Nigeria’s capital gains tax reforms note (17 August 2026) says the company rate rose from 10% to 30%. For a developer, that is a real cost: selling plots through a company can be taxed more heavily than selling the same plots as an individual. Whether to hold land personally or through a company is a question for your accountant before you buy, not after you sell.
What most sale-cost guides leave out
Capital gains tax is only one slice. Selling also means agent commission, legal fees, and sometimes state charges when the buyer perfects the title. We break down the buyer’s side in The True Total Cost of Buying Land in Nigeria, and the Lagos changes in Lagos’s 2026 Blue Book. For the wider tax picture, see 2026 Tax Law vs Old Tax Rules. And if you are the buyer, the property transfer documentation guide shows which papers a clean sale leaves behind.
What should you do before you sell?
Gather your purchase agreement, receipts and survey. Work out your gain with your costs deducted. Check whether the main-home exemption applies. Then speak to a Nigerian tax professional or the relevant tax authority about filing and payment, because we have not verified the filing deadlines and will not guess at them.
Feasibility Studio launches soon. Planning to build and sell? Join the founding list and model your costs, including tax, before you buy the land.
Frequently asked questions
What is the capital gains tax rate on land in Nigeria in 2026?
For individuals, gains are taxed at personal income tax rates, from 0% up to 25%, depending on your total income that year. For companies, PwC Nigeria reports a flat 30%.
Do I pay capital gains tax if I inherit land?
Not on the inheritance itself. Per Bloomberg Tax, your starting value is the market value at the date of death, so only later growth is taxed when you sell.
Is there capital gains tax on my only house?
Selling your main home and up to one acre around it is exempt once in a lifetime, according to Mondaq. Rentals and investment plots are not covered.
Can I deduct what I paid for the land?
Yes. The gain is the sale proceeds minus your acquisition cost and allowable expenses such as legal fees, valuation costs and stamp duties.
Does inflation reduce my taxable gain?
No. Bloomberg Tax reports that inflation indexation is not allowed, so part of your “gain” may simply be the naira losing value.
Methodology & sources. Rules from Mondaq, 5 January 2026, Bloomberg Tax and PwC Nigeria, 17 August 2026. Worked examples are LON’s own arithmetic on the published bands. Naira conversions at ₦1,385/$. This is general information, not tax advice; confirm with a qualified Nigerian tax adviser. Last updated: 1 October 2026. Journalists and researchers may cite this with attribution to LandsofNigeria.com.
