Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₦5,000
Income Tax
- ₦313
National Housing Fund (NHF)
- ₦125
Pension contributions
- ₦400
Total tax
- ₦838
Net pay
* ₦4,162
Marginal tax rate
16.8%
Average tax rate
16.8%
83.2%
Net pay
16.8%
Total tax
Total tax
Net pay
Summary
If you make ₦60,000 a year living in Nigeria, you will be taxed ₦10,059. That means that your net pay will be ₦49,941 per year, or ₦4,162 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.
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.