International Journal of Research in Economics and Social Sciences (IJRESS) Available online at: http://euroasiapub.org Vol. 8 Issue 7, July - 2018 ISSN(o): 2249-7382 | Impact Factor: 6.939 | International Journal of Research in Economics & Social Sciences Email:- editorijrim@gmail.com, http://www.euroasiapub.org (An open access scholarly, peer-reviewed, interdisciplinary, monthly, and fully refereed journal.) 1 THE EVALUATION OF THE EFFECT OF PERSONAL INCOME TAX ON REVENUE PROFILE OF EKITI STATE GOVERNMENT FASINA, H.T 1 Department of Management and Accounting, Faculty of Management Sciences, Ladoke Akintola University of Technology, Ogbomoso, Oyo State Nigeria. ADEGBITE TAJUDEEN ADEJARE 2 Department of Management and Accounting, Faculty of Management Sciences, Ladoke Akintola University of Technology, Ogbomoso, Oyo State Nigeria. ALABI, W.O. 3 Department of Accounting (Entrepreneurship) Ekiti State University, Ado- Ekiti 234-815-077-1473 Abstract A major challenge facing most state governments in Nigeria relate to the nature of our fiscal structure which makes most of the states in the country to depend more on allocations from the Federation Account at the expense of their individual efforts to generate adequate revenue internally. This study therefore evaluated the effect of personal income tax on internally generated revenue (IGR) of government in Ekiti State. It also identified the components of Ekiti State IGR and analysed the relationship between personal income tax and government revenue in Ekiti State. Secondary data were used in this study. Relevant data were sourced from the approved budgets of the Ekiti State government. The variables for which data were sourced were PAYE, Direct Assessment, Road Tax, and Other Revenue, government development stock, and Government Expenditure for the period of 2003 to 2012. Mean and standard deviation were used to analyse the components of Ekiti state revenue. Multiple regression analysis technique (Ordinary Least Square (OLS) method) was used to analyse the relationship between the dependent variable (Government Revenue) and independent variables (PAYE, Direct Assessment, Road Tax, and Other Revenue). Findings indicated that PAYE had positive effect on Revenue generation of government in Ekiti state ȋβ = .ͲͳͶ͵ͶͶ; p ≤ Ͳ.ͲͷȌ. Also, Direct assessment and Road tax had positive significant effect on Revenue generation ȋβ = .ͷͳͲ͸͵͸; .ͳͶ͵Ͳ͸Ͷ; p ≤ Ͳ.ͲͷȌ. )t was concluded that Personal Income Tax has positive significant effect on internally generated revenue profile of government in Ekiti state. It is now recommended that government should embark more on strict enforcement of personal income tax in order to bring more taxable entity into the tax net most especially in the direct assessment which in the long run increase internally generated revenues of the state. Key words: Direct Assessment; PIT; Ekiti state government; IGR; Effect