Tax Myths You Should Stop Believing Before 2026 By Abdulrauf Aliyu
Letโs talk about myths โ those sweet-sounding โfactsโ people repeat so confidently youโd almost believe themโฆ 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 โ like expired jollof rice in the fridge.
Myth 1: โMy employer deducts PAYE, so I donโt need to file tax returns.โ
Ah, the classic.
Yes, your employer deducts PAYE, but from 2026, every employee โ public or private โ 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:
โDear Government, hereโs everything I earned, and hereโs proof Iโve paid correctly.โ
Myth 2: โTax is only for the rich.โ
If that were true, Nigeria would have about 10 taxpayers.
Tax applies to anyone who earns income โ whether itโs 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 isnโt punishment for wealth โ itโs participation in nation-building.
Myth 3: โThey will now tax all the money in my bank account.โ
Relax โ nobody is taxing your entire inflows.
The new tax laws donโt tax transactions; they tax income.
Whatโs taxed is what you actually earned, after all legitimate deductions (like pension, NHF, RRA, etc.).
So if your mother sent you โฆ20k for fuel, thatโs not taxable income โ thatโs just survival money.
Myth 4: โI canโt make mistakes; once I file, theyโll come for me.โ
Wrong again. Filing isnโt a trap; itโs a process.
If you make an honest mistake, you can correct it.
What gets people in trouble isnโt error โ itโs silence or deliberate concealment.
The tax authority isnโt chasing perfection โ theyโre promoting transparency.
๐งพ Myth 5: โOnce PAYE is deducted, Iโve done my part. I donโt care about tax again.โ
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 doesnโt close your tax story โ filing does.
Itโs like brushing your teeth but forgetting to rinse โ technically clean, but not quite there.
Myth 6: โTax laws are too complicated. Iโll just ignore it.โ
Ignoring tax law doesnโt make it disappear โ it just makes penalties appear.
But hereโs the good news: you donโt need to be a professional.
Ask questions, read summaries, attend sensitization programs, or consult the Legal or Tax Department at work.
The goal isnโt to scare you โ itโs to make you smarter.
Final Thought
Tax myths are comforting lies that keep people uninformed.
But in 2026, ignorance wonโt be bliss โ itโll be expensive.
So, be that person who knows the truth, files correctly, and helps others understand it too.
Because tax compliance isnโt about fear โ itโs about confidence.
Stay informed. File early. Ask questions.
The new tax system isnโt your enemy โ itโs just a test of your readiness.