This research work evaluates the Impact of Taxation on Inequality in Nigeria from (1980-2010). From our finding we found out that taxation does not have a statistical significant effect on inequality in Nigeria. Taxation is one of the most important and easy source of revenue to any government as the government possesses inherent power to impose taxes and levies. Inequality can be reduced in Nigeria if the government will take a special look at the rural areas than in the urban areas and help to bridge the gap between the have and the have not (rich and the poor). Finally, a tax reduced inequality if it lightens the tax burden on the poor and ensures a greater burden on the better ? off.