Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₦13,808
Income Tax
- ₦865
National Housing Fund (NHF)
- ₦345
Pension contributions
- ₦1,105
Total tax
- ₦2,315
Net pay
* ₦11,493
Marginal tax rate
16.8%
Average tax rate
16.8%
83.2%
Net pay
16.8%
Total tax
Total tax
Net pay
The Taxberg
₦11,493
Net pay
₦1,657
Tax the employer pays
₦2,315
Tax you pay
Total tax paid
₦3,972
Did you know your employer also pays tax on your salary? It costs the employer ₦1,657 to pay you ₦13,808. In other words, every time you spend ₦10 of your hard-earned money, ₦2.88 goes to the government.
Real tax rate
25.7%
So, with you and the employer both paying tax, what used to be a 16.8% tax rate now rises to 25.7%, meaning your real tax rate is actually 8.9% higher than what it seemed at first.
Summary
If you make ₦165,696 a year living in Nigeria, you will be taxed ₦27,779. That means that your net pay will be ₦137,917 per year, or ₦11,493 per month. Your average tax rate is 16.8% and your marginal tax rate is 16.8%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of ₦100 in your salary will be taxed ₦16.77, hence, your net pay will only increase by ₦83.23.
Bonus Example
A ₦1,000 bonus will generate an extra ₦832 of net incomes. A ₦5,000 bonus will generate an extra ₦4,162 of net incomes.
Africa
Country 
Net pay
Average tax
Rank
South Africa
NGN 164039
1.0%
1
Uganda
NGN 157411
5.0%
2
Ghana
NGN 156583
5.5%
3
Zambia
NGN 155754
6.0%
4
Morocco
NGN 154528
6.7%
5
Ivory Coast
NGN 153269
7.5%
6
Angola
NGN 152206
8.1%
7
Senegal
NGN 148996
10.1%
8
Cameroon
NGN 139801
15.6%
9
Nigeria
NGN 137917
16.8%
10
Mozambique
NGN 130076
21.5%
11
Kenya
NGN 111140
32.9%
12
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NOTE* Withholding is calculated based on the tables of Nigeria, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.