Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₦328
Income Tax
- ₦20.56
National Housing Fund (NHF)
- ₦8.03
Pension contributions
- ₦26.24
Total tax
- ₦54.83
Net pay
* ₦273
Marginal tax rate
16.9%
Average tax rate
16.7%
83.3%
Net pay
16.7%
Total tax
Total tax
Net pay
The Taxberg
₦273
Net pay
₦39.36
Tax the employer pays
₦54.83
Tax you pay
Total tax paid
₦94.19
Did you know your employer also pays tax on your salary? It costs the employer ₦39.36 to pay you ₦328. In other words, every time you spend ₦10 of your hard-earned money, ₦2.87 goes to the government.
Real tax rate
25.6%
So, with you and the employer both paying tax, what used to be a 16.7% tax rate now rises to 25.6%, meaning your real tax rate is actually 8.9% higher than what it seemed at first.
Summary
If you make ₦3,936 a year living in Nigeria, you will be taxed ₦658. That means that your net pay will be ₦3,278 per year, or ₦273 per month. Your average tax rate is 16.7% and your marginal tax rate is 16.9%. 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 ₦16.89, hence, your net pay will only increase by ₦83.11.
Bonus Example
A ₦1,000 bonus will generate an extra ₦831 of net incomes. A ₦5,000 bonus will generate an extra ₦4,156 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
Canada
NGN 3869
1.8%
1
USA
NGN 3590
8.9%
2
Middle East
Country 
Net pay
Average tax
Rank
Egypt
NGN 3936
0.0%
1
Saudi Arabia
NGN 3938
0.0%
2
United Arab Emirates
NGN 3740
5.0%
3
Qatar
NGN 3741
5.0%
4
Lebanon
NGN 3660
7.0%
5
Oman
NGN 3616
7.8%
6
Bahrain
NGN 3604
8.0%
7
Kuwait
NGN 3493
11.1%
8
Israel
NGN 3416
13.2%
9
Turkey
NGN 3316
15.8%
10
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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.