Tax Myths You Should Stop Believing Before 2026 By Abdulrauf Aliyu
Let’s talk about myths — those sweet-sounding “facts” people repeat so confidently you’d almost believe them… until reality (and the taxman) shows up with receipts.
As we prepare for the new tax era in 2026, here are a few popular tax myths that need to go — like expired jollof rice in the fridge.
Myth 1: “My employer deducts PAYE, so I don’t need to file tax returns.”
Ah, the classic.
Yes, your employer deducts PAYE, but from 2026, every employee — public or private — must personally file their own returns.
PAYE covers your salary tax, but filing covers your full income picture (including side hustles, bonuses, prizes, or investment gains).
Filing is like saying:
“Dear Government, here’s everything I earned, and here’s proof I’ve paid correctly.”
Myth 2: “Tax is only for the rich.”
If that were true, Nigeria would have about 10 taxpayers.
Tax applies to anyone who earns income — whether it’s salary, business profit, rent, or investment gain.
Even if your income is small, filing helps you show compliance and keeps your records clean.
Remember: tax isn’t punishment for wealth — it’s participation in nation-building.
Myth 3: “They will now tax all the money in my bank account.”
Relax — nobody is taxing your entire inflows.
The new tax laws don’t tax transactions; they tax income.
What’s taxed is what you actually earned, after all legitimate deductions (like pension, NHF, RRA, etc.).
So if your mother sent you ₦20k for fuel, that’s not taxable income — that’s just survival money.
Myth 4: “I can’t make mistakes; once I file, they’ll come for me.”
Wrong again. Filing isn’t a trap; it’s a process.
If you make an honest mistake, you can correct it.
What gets people in trouble isn’t error — it’s silence or deliberate concealment.
The tax authority isn’t chasing perfection — they’re promoting transparency.
🧾 Myth 5: “Once PAYE is deducted, I’ve done my part. I don’t care about tax again.”
Oh, but you should care.
Your Tax Clearance Certificate (TCC), business opportunities, and even some financial services depend on your compliance history.
So, PAYE alone doesn’t close your tax story — filing does.
It’s like brushing your teeth but forgetting to rinse — technically clean, but not quite there.
Myth 6: “Tax laws are too complicated. I’ll just ignore it.”
Ignoring tax law doesn’t make it disappear — it just makes penalties appear.
But here’s the good news: you don’t need to be a professional.
Ask questions, read summaries, attend sensitization programs, or consult the Legal or Tax Department at work.
The goal isn’t to scare you — it’s to make you smarter.
Final Thought
Tax myths are comforting lies that keep people uninformed.
But in 2026, ignorance won’t be bliss — it’ll be expensive.
So, be that person who knows the truth, files correctly, and helps others understand it too.
Because tax compliance isn’t about fear — it’s about confidence.
Stay informed. File early. Ask questions.
The new tax system isn’t your enemy — it’s just a test of your readiness.