Income tax calculator Nigeria
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₦315,000
Income Tax
- ₦50,334
National Housing Fund (NHF)
- ₦7,875
Pension contributions
- ₦25,200
Total tax
- ₦83,409
Net pay
*
₦231,591
Marginal tax rate
31.9%
Average tax rate
26.5%
73.5%
Net pay
26.5%
Total tax
Total tax
Net pay
The Taxberg
₦231,591
Net pay
₦37,800
Tax the employer pays
₦83,409
Tax you pay
Total tax paid
₦121,209
Did you know your employer also pays tax on your salary? It costs the employer ₦37,800 to pay you ₦315,000. In other words, every time you spend ₦10 of your hard-earned money, ₦3.85 goes to the government.
Real tax rate
34.4%
So, with you and the employer both paying tax, what used to be a 26.5% tax rate now rises to 34.4%, meaning your real tax rate is actually 7.9% higher than what it seemed at first.
Summary
If you make ₦3,780,000 a year living in Nigeria, you will be taxed ₦1,000,904. That means that your net pay will be ₦2,779,096 per year, or ₦231,591 per month. Your average tax rate is 26.5% and your marginal tax rate is 31.9%. 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 ₦31.88, hence, your net pay will only increase by ₦68.12.
Bonus Example
A ₦1,000 bonus will generate an extra ₦681 of net incomes. A ₦5,000 bonus will generate an extra ₦3,406 of net incomes.
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.