Income tax calculator Nigeria
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₦3,530
Income Tax
- ₦221
National Housing Fund (NHF)
- ₦88.25
Pension contributions
- ₦282
Total tax
- ₦592
Net pay
*
₦2,938
Marginal tax rate
16.8%
Average tax rate
16.8%
83.2%
Net pay
16.8%
Total tax
Total tax
Net pay
The Taxberg
₦2,938
Net pay
₦424
Tax the employer pays
₦592
Tax you pay
Total tax paid
₦1,015
Did you know your employer also pays tax on your salary? It costs the employer ₦424 to pay you ₦3,530. 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 ₦42,360 a year living in Nigeria, you will be taxed ₦7,102. That means that your net pay will be ₦35,258 per year, or ₦2,938 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.
North America
Country
Net pay
Average tax
Rank
Canada
NGN 41690
1.6%
1
USA
NGN 38696
8.7%
2
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.