Income tax calculator Nigeria
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₦40,194
Income Tax
- ₦3,001
National Housing Fund (NHF)
- ₦1,005
Pension contributions
- ₦3,216
Total tax
- ₦7,221
Net pay
*
₦32,973
Marginal tax rate
19.6%
Average tax rate
18.0%
82.0%
Net pay
18.0%
Total tax
Total tax
Net pay
The Taxberg
₦32,973
Net pay
₦4,823
Tax the employer pays
₦7,221
Tax you pay
Total tax paid
₦12,045
Did you know your employer also pays tax on your salary? It costs the employer ₦4,823 to pay you ₦40,194. In other words, every time you spend ₦10 of your hard-earned money, ₦3 goes to the government.
Real tax rate
26.8%
So, with you and the employer both paying tax, what used to be a 18% tax rate now rises to 26.8%, meaning your real tax rate is actually 8.8% higher than what it seemed at first.
Summary
If you make ₦482,328 a year living in Nigeria, you will be taxed ₦86,656. That means that your net pay will be ₦395,672 per year, or ₦32,973 per month. Your average tax rate is 18.0% and your marginal tax rate is 19.6%. 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 ₦19.55, hence, your net pay will only increase by ₦80.45.
Bonus Example
A ₦1,000 bonus will generate an extra ₦805 of net incomes. A ₦5,000 bonus will generate an extra ₦4,023 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.