This study investigated the influence of personal income tax and tax compliance on economic development in Nigeria from 1999 to 2022. Using personal income tax as a ratio of gross domestic product, the study employs ordinary least squares (OLS) technique to analyze the data. Results indicate a significant positive effect of personal income tax on economic development, while tax compliance rate shows a significant negative impact. Recommendations include enhancing tax compliance by addressing loopholes that facilitate tax avoidance and under declaration of tax returns.