For individuals, the gain folds into income and is taxed at the PIT bands.
CGT due
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Chargeable gain
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Effective rate on gain
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Net gain after CGT
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Your breakdown
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Step
Amount (NGN)
Worked example
Take an individual who sells an asset for N15,000,000 that originally cost N10,000,000, so the chargeable gain is N5,000,000. Suppose they already have N6,000,000 of other chargeable income for the year. Tax on the N6,000,000 alone is N870,000. Stacking the gain on top brings total income to N11,000,000, and tax on that is N1,770,000. The capital gains tax is the difference, N900,000. Because the gain sits entirely inside the 18% band that runs from N3,000,000 to N12,000,000, the effective rate on the gain is exactly 18%. After tax the investor keeps N4,100,000 of the N5,000,000 gain.
How it is calculated
Under the Nigeria Tax Act 2025 the old flat 10% capital gains tax for individuals is gone. Instead the chargeable gain, which is proceeds less acquisition and allowable costs, is added to the person's other chargeable income and taxed at the same six progressive personal income tax bands. The tax attributable to the gain is found by computing tax on income including the gain, then subtracting the tax on the same income without it, so the marginal band the gain lands in sets the effective rate. A taxpayer already in a high band therefore pays more on the same gain than someone with little other income. Several reliefs can apply, including the exemption for a principal private residence and for personal chattels gains below N5,000,000. Companies are taxed on chargeable gains at the prevailing companies income tax rate rather than these bands.
Frequently asked questions
How is capital gains tax charged in Nigeria in 2026?
The old flat 10% CGT is gone. Under the Nigeria Tax Act 2025, an individual adds the chargeable gain to other income and pays tax at the personal income tax bands, so the rate depends on your total income. This calculator shows the extra tax the gain creates on top of your other chargeable income. Companies are taxed on gains at the prevailing CIT rate instead.
Is there an exemption for a principal private residence in Nigeria?
Yes. A gain on the disposal of your principal private residence is exempt from capital gains tax in Nigeria, provided the property has been your main home throughout the period of ownership. You should keep records showing that the property was your primary residence. If only part of the property was used as a residence, or if it was let out for periods, only a proportion of the gain may qualify for relief.
What counts as an allowable cost when computing a chargeable gain?
Allowable costs include the original acquisition price plus incidental costs of purchase such as legal fees and stamp duty, capital improvement expenditure that adds value to the asset, and incidental costs of disposal such as agent fees. Costs of maintenance and repair are not allowable because they are revenue expenses. Only capital expenditure that is reflected in the state or nature of the asset at the time of disposal can be deducted.
Do I still need to file a return if my capital gain is exempt?
You should still disclose a disposal in your annual self-assessment return even if the resulting gain is exempt or falls below a threshold. The State Board of Internal Revenue can request evidence of the exemption, so maintaining a record of the disposal value, original cost, and the basis of any exemption claimed is advisable. Failure to file can attract penalties separate from any tax that may be due.