This paper assesses the effect of corporate tax and liquidity of listed deposit money banks in Nigeria from 2018 to 2022.The entire fourteen listed DMBs served as population of the study. Data are obtained from annual reports and accounts of these banks. The study used descriptive statistics, inferential statistics, and correlation analysis. While panel generalized least square regression was used to analyze the dependent variable, liquidity, measured by cash ratio and independent variable corporate tax, measured by effective tax rate and tax expense, while control variables used was bank size. The result reveals that, effective tax rate has significant negative effect on liquidity at a coefficient of (-0.1245) and a significant p-value of (0.0436) and tax expense has a significant negative effect on liquidity with a coefficient value of (-0.1065) and a p-value of (0.0394). On the other hand, the control variable bank size indicated a positive significant effect on liquidity with a coefficient value of (2.9703) and a p-value of (0.0028) among listed DMBs in Nigeria. The study recommends that, tax authorities should review the current corporate tax policy and come up with more favourable policy that will increase the liquidity of listed DMBs in Nigeria. This will improve bank’s patronage and thereby encouraging the banking sector’s growth and development.