Lagos State tax: PAYE and personal income tax in 2026

The Lagos State Revenue Administration Law, 2006 sets up the Lagos State Board of Internal Revenue and LIRS as its operating arm, and governs how State and local government revenue is assessed, collected, objected to and appealed.

LIRS lists the taxes and charges it administers for the State: PAYE and direct assessment, State withholding tax, State capital gains tax, State stamp duties, the Economic Development Levy on businesses, a 5% Consumption Tax at hotels, restaurants and event centres, and the Land Use Charge.

The Land Use Charge is one annual property charge that merges ground rent, the tenement rate and the neighbourhood improvement charge.

Business premises registration is done on e-Tax. LIRS gives the ceilings under the federal approved-list Act as N10,000 to register and N5,000 a year to renew in urban areas, and N2,000 and N1,000 a year in rural areas. The Lagos State Ministry of Finance decides which areas count as urban.

Economic Development Levy: LIRS describes it as an annual levy on businesses operating in Lagos. The page gives no amount.

Consumption Tax is 5% on goods and services consumed at hotels, restaurants and event centres in Lagos.

Informal traders and artisans start from a small fixed presumptive tax. It can be paid through an assigned IBILE agent, the e-Tax app, or through a trade association by quoting its name and Corporate Identification Number on the bank teller. A trader who needs a TCC for a land permit or C of O still has to file annual returns and may pay more than the presumptive tax.

Individuals sign up at etax.lirs.net with New User Sign Up, using a BVN and date of birth. The Payer ID is sent by e-mail and SMS.

Companies choose Create New Tax ID, then Corporate, and enter the CAC registration number in the form XX123456, followed by company name, e-mail, phone, address, LGA and LCDA, preferred tax station and business type. A director's Payer ID is needed to finish.

Business premises are registered and paid for on the same e-Tax platform.

Lagos issues an electronic tax clearance certificate (e-TCC), free of charge. The LIRS Service Charter 2026 says it is issued in real time once income tax returns are filed and the tax is paid in full or confirmed adequate.

File Form A on e-Tax with the financial statements where they apply, a tax computation with proof of payment, evidence of pension, life assurance, NHIS and NHF contributions, and proof of tax paid at source.

Under section 35 of the Revenue Administration Law, a clearance for the last three years is demanded for Governor's consent to property deals, a certificate of occupancy, contractor registration, government contracts, building plan approval, licences and permits, State loans and motor vehicle registration.

No TCC is issued to an applicant who has deducted PAYE or withholding tax and not remitted it.

A lost e-TCC is re-issued on request for a N1,000 fee, according to the LIRS FAQ.

Payment is made by generating a bill reference on e-Tax and paying through the in-app channels, or at a Lagos State designated revenue-collecting bank. Not every bank is designated.

A notification of each remittance goes to the phone number registered against the Payer ID/TIN, and a remittance statement can be generated on e-Tax.

Under section 39 of the Revenue Administration Law, tax not paid on time carries 10% added plus interest at the commercial rate of the CBN. Under section 55, PAYE or withholding tax deducted and not paid to LIRS within 30 days carries the tax plus 10% a year and interest.

LIRS's current FAQ, citing the Nigeria Tax Administration Act 2025, states a penalty of N100,000 for the first month of failing to file returns and N50,000 for each later month, and N50,000 then N25,000 a month for failing to register.

Head office: Lagos Revenue House, Assbifi Road, Central Business District, Alausa, Ikeja. LIRS runs tax stations across the State, including Marina, Falomo (Ikoyi), Ibeju-Lekki and Ikorodu, and a stamp duty office on the Lekki-Epe Expressway. Call centre 0700-2255-5477, Monday to Friday 8am to 5pm.