What Are the Property Taxes in Ogun State?

  Introduction

If you own, buy, build, or lease property in Ogun State, understanding your property tax obligations is critical. Whether you’re a landlord in Abeokuta, a business owner in Sagamu, or a land investor in Ijebu Ode, you are subject to various property-related taxes and levies under state and federal laws.

In this article, we’ll break down all the key property taxes in Ogun State — including Land Use and Amenities Charge (LUAC), Stamp Duties, Capital Gains Tax, Withholding Tax, Development Levies, and others — so you can stay compliant, budget correctly, and avoid penalties.

TIP: Property taxes are not just fees – they fund roads, drainage, electricity, security, waste management, and other public amenities that increase your property’s value.

 Table of Contents

1. What Are Property Taxes?

2. Key Property Taxes in Ogun State

   • Land Use and Amenities Charge (LUAC)

   • Capital Gains Tax (CGT)

   • Stamp Duties

   • Withholding Tax (WHT)

   • Development Levy

   • Ground Rent

3. Who Pays These Taxes?

4. How Are Property Taxes Paid in Ogun?

5. Exemptions and Reliefs

6. Enforcement and Penalties

7. Benefits of Paying Property Taxes

8. FAQs

9. Conclusion

10. Call to Action

 1. What Are Property Taxes?

Property taxes are levies imposed by government on land, buildings, and related transactions. These taxes may be annual (recurrent) or one-time (transactional) and are paid either to the state, local government, or federal government, depending on the type.

In Ogun State, both the state and local governments collect property-related taxes.

 2. Key Property Taxes in Ogun State

 a. Land Use and Amenities Charge (LUAC)

Administered by: Ogun State Government
Frequency: Annually
Applies to: All owners of developed landed property (residential, commercial, industrial)

This is the primary annual property tax in Ogun State, replacing:

• Ground Rent

• Tenement Rate

• Neighborhood Improvement Charge

It is computed based on your land size, building size, location, and use (residential, commercial, etc.).

 – Learn how to calculate LUAC here: How to Calculate Land Use Charge in Ogun

 b. Capital Gains Tax (CGT)

Administered by: Federal Inland Revenue Service (FIRS)
Frequency: One-time (per transaction)
Rate: 10% of net gains

This tax applies when you sell land or property and make a profit. The 10% is charged on the gain (i.e. sale price minus acquisition cost and allowable expenses).
Example: If you bought land for ₦2M and sold it for ₦5M, CGT = 10% of ₦3M = ₦300,000

 c. Stamp Duties

Administered by: Ogun State Internal Revenue Service (OGIRS) for individuals
Frequency: Per transaction
Applies to: Legal documents related to property, including:

• Deeds of assignment

• Lease agreements

• Mortgages

• Tenancy agreements

Rate: Typically, 1% – 2% of the property value (depends on type of document)
You must stamp your documents before they can be registered with the land registry.

 d. Withholding Tax (WHT)

Administered by: FIRS (corporate tenants) or OGIRS (individual tenants)
Frequency: Per rent payment
Applies to: Rent payments (commercial or residential)

If you receive rent as a landlord, your tenant (especially if a company or government agency) may be required to withhold part of it as tax and remit to government.

WHT Rates:

• Residential Rent: 10%

• Commercial Rent: 10%

 e. Development Levy

Administered by: Local Governments / State
Frequency: One-time (during land acquisition or approval)
Applies to: Building permit or title processing

This fee is paid when processing Certificates of Occupancy (C of O), building plans, or land regularization. It varies based on:

• Location

• Plot size

• Zoning (residential, commercial, industrial)

 f. Ground Rent (now absorbed into LUAC)

Before LUAC was introduced in 2013, Ogun State collected ground rent from landholders.
This has now been merged into LUAC, so ground rent is no longer paid separately by most property owners.

 3. Who Pays These Property Taxes?

 4. How Are Property Taxes Paid in Ogun?

 Online Platforms:

• LUAC Portal – for Land Use and Amenities Charge

• OGIRS Portal – for Stamp Duty and other state taxes

• Remita.net – for general government payments

 Physical Channels:

• Banks (using payment codes)

• Ogun State Internal Revenue Service (OGIRS) offices

• Local Government Area secretariats

Always ensure to collect payment receipts and confirmation.

 5. Exemptions and Reliefs

Some exemptions may apply to:

• Religious organizations (non-profit churches, mosques)

• Government-owned property

• Properties below a certain value threshold

• Low-income earners or aged citizens (must apply for relief)

You must apply with proper documentation to enjoy any exemption.

 6. Penalties for Non-Compliance

 7. Benefits of Paying Property Taxes

• Legally secure your property

• Qualify for bank loans or mortgage

• Access government services like road repairs, drainage, waste collection

• Avoid sealing or court action

• Increase resale value of your property

“Taxes are the price we pay for a civilized society.” – Oliver Wendell Holmes Jr.

 8. FAQs

Q: Do I pay property tax every year?

A: Only LUAC is paid annually. Others like Stamp Duty or CGT are one-time payments during transactions.

Q: Can I pay LUAC online?

A: Yes! Use the LUAC self-service portal: https://portal.luac.ogunstate.gov.ng/self

Q: Is Stamp Duty the same as LUAC?

A: No. Stamp Duty is a fee on documents, LUAC is an annual charge on properties.

 9. Summary Table: Property Taxes in Ogun State

 10. Call to Action

Are your property taxes up to date?

  Visit the LUAC Portal to check and pay your land use charge.
  Confirm stamp duty on your land documents at OGIRS.
  If you sold or bought land recently, consult a tax professional to file your Capital Gains Tax or Stamp Duties.
  Don’t risk fines or sealing — pay your property taxes and enjoy peace of mind

Conclusion