How to File Tax Returns for Individuals with Multiple Streams of Income

Why It Matters

Missing the March deadline triggers steep fines, while proper filing unlocks deductions that can significantly reduce tax bills for Nigeria’s growing multi‑income workforce.

Key Takeaways

• Deadline: 31 March for personal returns
• Consolidate all income sources on one assessment
• Rent relief capped at ₦500,000, 20% deduction
• Foreign income exempt if remitted via approved banks
• Penalties start at ₦100,000, rise ₦50,000 monthly

Pulse Analysis

Nigeria’s tax environment has shifted dramatically with the 2025 Tax Act, which expands the Personal Income Tax Act’s reach to cover the nation’s burgeoning gig economy. By moving individual tax administration to the state level, the law encourages digital adoption through e‑tax portals, streamlining data entry for multiple income streams. This centralised approach not only simplifies compliance for salaried employees juggling side hustles, but also aligns Nigeria with global best practices that demand transparent, real‑time reporting of earnings across sectors.

For freelancers, online sellers, landlords and investors, the new rules emphasize consolidation: all earnings—whether from a 9‑to‑5 job, freelance contracts, commodity trading, or dividend payouts—must be aggregated on a single assessment form. The Act introduces targeted reliefs, such as a 20 % rent deduction capped at ₦500,000 and pension contributions that lower taxable income, while foreign dividends and interest remain exempt if transferred via government‑approved banks. These provisions are designed to protect low‑ and middle‑income earners, making tax planning a strategic advantage rather than a compliance chore.

The compliance stakes are high. Late filings incur an initial ₦100,000 fine, escalating by ₦50,000 each month, pressuring taxpayers to meet the 31 March deadline. Early filing, however, offers benefits: it secures eligibility for deductions, prevents interest accrual, and builds a clean financial record that can aid future credit applications. As state portals become more sophisticated, taxpayers should prioritize digital registration, maintain meticulous records, and leverage the new reliefs to optimise their tax position in an increasingly diversified income landscape.

How to file tax returns for individuals with multiple streams of income

A comprehensive guide to filing your annual tax return · February 11, 2026 · Victoria Fakiya · Senior Writer, Techpoint Digest

The Nigerian tax system, governed primarily by the Personal Income Tax Act (PITA) and the recent Nigeria Tax Act 2025, requires every resident to report their total income from all sources annually. Whether you are a full‑time employee, a freelancer, or a business owner with multiple side hustles, filing is your way of declaring your earnings and expenses to the government to ensure you are paying exactly what you owe.

In Nigeria, there is often a misconception that only businesses file taxes, and that once an employer has remitted and filed taxes on your behalf, you have met your responsibilities to the government. While registered businesses must file by 31 January, individuals have a slightly longer window. Every individual earning an income in Nigeria is required by law to file their personal annual tax return by 31 March of each year for the preceding year.

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Before you file your tax return

Filing taxes is one of the last steps in the tax compliance process. It is simply a summary of your financial standing and proof of the taxes you remitted during the year. Hence, before you file your tax return, you should calculate your tax liability and remit it. Below is an example from the Lagos State e‑tax digital portal.

• Under assessments, you can calculate your tax by inputting all the figures that apply to you. If the only figures that apply are your salary and pension or the inflow from your business, input those and leave everything else blank.

• If you have multiple sources of income, you can list each separately.

• The system automatically calculates your tax. If your employer has remitted some taxes on your behalf, deduct that amount from the total amount and remit the balance.

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Where and how to file your tax return

The first thing to remember when filing taxes is that individual income tax is administered at the state level.

Individuals remit and file their taxes with the State Internal Revenue Service (SIRS) of the state where they live (e.g., Lagos State Internal Revenue Service, Kano State Internal Revenue Service, Rivers State Internal Revenue Service, etc.).

In contrast, incorporated entities remit and file their Corporate Income Tax with the federal authority, the Nigeria Revenue Service (NRS), formerly known as the Federal Inland Revenue Service.

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Step 1: Identify your tax jurisdiction and medium

1. Choose your medium: If your state of residence has a digital portal, visit it to sign up. If the state operates a hybrid or manual model, you may need to visit its office to complete the return form.

2. Determine your state of residence: You pay and file in the state where you reside, regardless of where your employer is based or where your clients are located. For example, if you live in Lagos but work remotely for a firm in Abuja, you are a Lagos State taxpayer.

Step 2: Consolidate your income and fill out your assessment form

Under the Nigeria Tax Act 2025, the tax calculation formula has changed significantly to favour low and middle‑income earners while closing loopholes for those with multiple streams of income.

If you earn multiple streams of income, the law expects you to consolidate. This means adding your 9‑to‑5 salary to your side‑hustle profits and filing them as a combined gross total. If you work primarily as a freelancer without a 9‑to‑5 job, the process is the same, and you are expected to consolidate all your sources of income.

When completing the assessment form, you should:

• Attach any supporting documents (financial statements, rent receipt or tenancy agreement for rent relief, etc.).

• Input income from trading commodities, allowances, commissions, etc., individually.

• Input your gross salary (or zero if you do not earn a salary).

• Choose the tax year for which you are filing.

• Add any other sources of income not covered on the form by clicking “add income.”

• If you are a landlord, input the total rent received in the previous year.

• Input any dividends or interest earned in the previous year.

• Foreign income (dividends, interest, rent, royalties earned abroad and remitted to Nigeria) is tax‑exempt provided it came through government‑approved banking channels. Dividends from wholly export‑related businesses are also tax‑exempt under the same condition.

• Input any gratuities earned; gratuities are tax‑exempt, though gratuity paid as compensation for job loss is exempt up to ₦50,000,000.

• Input contributions to annuities (deductible) and annual pension amounts (if any). For salaried employees, 8 % of annual gross income typically goes to a pension and is remitted by the employer, reducing taxable income.

Rent relief: Under the Nigeria Tax Act 2025, tenants can deduct 20 % of annual rent from taxable income, capped at ₦500,000. To claim, upload a valid rent receipt and tenancy agreement; relief applies only to rent paid within the tax year you are filing for.

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Conclusion

Filing your taxes with multiple income streams may seem daunting, but it is straightforward, especially with the increasing adoption of digital filing portals. Everyone is expected to file their taxes, regardless of whether they are tax‑exempt.

Missing the 31 March deadline can result in steep penalties, starting at ₦100,000 and increasing by ₦50,000 each subsequent month. Gather your receipts, log onto your state’s portal, and stay compliant.

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Frequently asked questions

1. How do I claim tax relief?

   Enter eligible expenses (rent, pension, insurance, etc.) in the deductions section of your state’s digital portal and upload supporting documents (rent receipts, insurance certificates).

2. Do I need to visit a tax office before I can file my taxes?

   No, unless your state does not have a digital portal; in that case you may need to visit the office.

3. Where will I file my taxes?

   File at the State Internal Revenue Service of the state where you reside—online if a portal exists, otherwise in person.

4. When is the deadline to file taxes?

   31 March each year. For 2026, you will file your 2025 taxes by 31 March 2026.

5. My employer has already filed taxes on my behalf. Do I still have to file?

   Yes. Your employer’s filing keeps the company compliant; you must also file your personal return.

6. Do I need to file if I’m unemployed?

   Yes. Unemployed individuals must file to declare their status. You can leave income sections blank or set them to ₦0. The same applies to tax‑exempt individuals who do not meet the ₦800,000 threshold—they must file but owe no tax.