Income Tax Calculator Nigeria

Find out how much your salary is after tax

Enter your gross income

Salary rate

Withholding

Salary ₦20,000

National Housing Fund (NHF) - ₦500

Income Tax - ₦1,253

Pension contributions - ₦1,600

Total tax - ₦3,353

Net pay * ₦16,647

Marginal tax rate 16.8%

Average tax rate 16.8%

16.8%Total tax

83.2%

Net pay

The Taxberg

₦16,647

Net pay

₦2,400

Tax the employer pays

₦3,353

Tax you pay

Total tax paid

₦5,753

Did you know your employer also pays tax on your salary? It costs the employer ₦2,400 to pay you ₦20,000. 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 ₦240,000 a year living in Nigeria, you will be taxed ₦40,236. That means that your net pay will be ₦199,764 per year, or ₦16,647 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 ₦16.8, hence, your net pay will only increase by ₦83.2.

Bonus Example

A ₦1,000 bonus will generate an extra ₦832 of net incomes. A ₦5,000 bonus will generate an extra ₦4,160 of net incomes.

Tax per income

₦25,000₦30,000₦35,000₦40,000₦45,000₦50,000₦55,000₦60,000₦65,000₦70,000₦75,000₦80,000₦85,000₦90,000₦95,000₦100,000₦105,000₦110,000₦115,000₦120,000

NOTE* Withholding is calculated based on the Nigeria tables of NG, 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.