How tax on a property sale gain is worked out
When you sell land or a building, the gain is broadly the sale price minus what you paid and allowable costs, such as legal fees and improvements. Tax on that gain is capital gains tax (CGT).
Before 2026. The Capital Gains Tax Act charged gains at a single flat rate, shown in the figures box for reference.
From 1 January 2026. The Nigeria Tax Act 2025 absorbed and replaced the old Act:
- Individuals: gains are added to total income and taxed at the progressive personal income tax rates, so the rate depends on your overall income.
- Companies: gains are taxed at the company income tax rate.
- Main home: law-firm summaries report an exemption for gains on one main residence, available once in a lifetime, with conditions.
Rates are in the figures box. Some articles published in 2026 still quote the old flat rate.
Lagos's capital gains line. Lagos's consent bill has, since 2015, included a small "capital gains" line calculated on the assessed value. How that state charge sits alongside the new federal regime has not been settled in the sources we checked; see the Sources differ box.
Selling as a diaspora owner. Non-resident Nigerians who sell property in Nigeria should take advice on how the new rules and any tax treaty apply to them.
Differences by state
- Nationwide: CGT on property follows the Nigeria Tax Act 2025 from 1 January 2026.
- Lagos: the Lands Bureau's consent bill has also carried a capital gains line based on assessed value.
What to check
- Your purchase price and costs, with receipts, so the gain can be worked out.
- Whether the property qualifies as your main home for the exemption.
- Whether you are taxed as an individual or a company.
- Advice from a tax adviser before you agree a price.
Red flags
- Advice that still quotes the old flat rate after 1 January 2026.
- Buyers asking you to understate the price on the deed; this can break tax law and weaken the buyer's title.
Typical cost or timeline
Personal income tax bands that apply to an individual's capital gains (from 1 January 2026)
0–25 % (progressive)
As of October 2026
Rate on companies' capital gains, other than small companies, which are exempt (from 1 January 2026)
30 %
As of October 2026
Old flat capital gains tax rate (until 31 December 2025)
10 %
As of October 2026
Sources differ
SOURCE 1
From 1 January 2026, an individual's gains are taxed at progressive personal income tax rates under the Nigeria Tax Act 2025.
August 2025
SOURCE 2
Lagos's land transaction charges include a capital gains line of 0.5% of the assessed value, set by the 2015 executive order.
2015
Capital gains tax vs Stamp duty
| Aspect | Capital gains tax | Stamp duty |
|---|---|---|
| Charged on | The profit from a disposal | The legal document |
| Who pays | The seller | Depends on the deal |
| Basis from 2026 | Personal or company income tax rates | Nigeria Tax Act rules for instruments |
| Main-home relief | Yes, with conditions | Not applicable |
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Questions
Do I pay tax when I sell land in Nigeria?
Usually yes, on the gain. Since 1 January 2026 an individual's gain is taxed at personal income tax rates, and a main home may be exempt.
What is the capital gains tax rate on property in Nigeria in 2026?
For individuals it follows the personal income tax bands; for companies it follows the company rate. See the figures box.
Is the old flat capital gains tax rate still used?
No. The flat rate under the Capital Gains Tax Act ended when the Nigeria Tax Act 2025 took effect on 1 January 2026.
Is my house exempt from capital gains tax?
One main residence can be exempt, once in a lifetime, subject to conditions. Check with a tax adviser.
Related terms
Sources
- 1. Overview of the notable changes introduced by the new Nigeria Tax Acts 2025 Aluko & Oyebode · checked 13 October 2026
- 2. Nigeria: individual taxes, income determination PwC Worldwide Tax Summaries · checked 13 October 2026
- 3. Nigeria: real estate legislation DLA Piper Real World · checked 13 October 2026
- 4. The Nigerian Tax Act 2025: implications for the real estate sector Estate Intel · checked 13 October 2026
- 5. Understanding personal income tax under the Nigerian Tax Act 2025 Mondaq · checked 13 October 2026
- 6. Fashola slashes rates on Lagos land transactions to woo investors BusinessDay · checked 13 October 2026
- 7. Capital gains tax enhancements: examining the new 30% rate and its impact on corporate asset disposals Babalakin & Co (via Mondaq) · checked 13 October 2026
Cite this definition
"Capital gains tax", Nigeria Property Centre Property Glossary, last checked 13 October 2026, https://nigeriapropertycentre.com/glossary/capital-gains-tax
You may reuse this definition under CC BY 4.0 with credit to Nigeria Property Centre and a link to this page.
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