Income tax calculator Nigeria
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₦707,364
Income Tax
- ₦134,608
National Housing Fund (NHF)
- ₦17,684
Pension contributions
- ₦56,589
Total tax
- ₦208,882
Net pay
*
₦498,482
Marginal tax rate
32.0%
Average tax rate
29.5%
70.5%
Net pay
29.5%
Total tax
Total tax
Net pay
The Taxberg
₦498,482
Net pay
₦84,884
Tax the employer pays
₦208,882
Tax you pay
Total tax paid
₦293,765
Did you know your employer also pays tax on your salary? It costs the employer ₦84,884 to pay you ₦707,364. In other words, every time you spend ₦10 of your hard-earned money, ₦4.15 goes to the government.
Real tax rate
37.1%
So, with you and the employer both paying tax, what used to be a 29.5% tax rate now rises to 37.1%, meaning your real tax rate is actually 7.6% higher than what it seemed at first.
Summary
If you make ₦8,488,368 a year living in Nigeria, you will be taxed ₦2,506,580. That means that your net pay will be ₦5,981,788 per year, or ₦498,482 per month. Your average tax rate is 29.5% and your marginal tax rate is 32.0%. 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 ₦31.98, hence, your net pay will only increase by ₦68.02.
Bonus Example
A ₦1,000 bonus will generate an extra ₦680 of net incomes. A ₦5,000 bonus will generate an extra ₦3,401 of net incomes.
Compare average tax
North America
Country
Net pay
Average tax
Rank
USA
NGN 7753190
8.7%
1
Canada
NGN 6923932
18.4%
2
Latin America
Country
Net pay
Average tax
Rank
Colombia
NGN 8350167
7.5%
1
Puerto Rico
NGN 7813541
8.0%
2
Brazil
NGN 7695694
9.3%
3
Ecuador
NGN 7686214
9.5%
4
Guatemala
NGN 7674461
9.6%
5
Mexico
NGN 7631664
10.1%
6
Costa Rica
NGN 7597089
10.5%
7
Panama
NGN 7554651
11.0%
8
Peru
NGN 7427323
12.5%
9
Chile
NGN 6994415
17.6%
10
Uruguay
NGN 6782206
20.1%
11
Argentina
NGN 5512278
35.1%
12
Show more
Middle East
Country
Net pay
Average tax
Rank
United Arab Emirates
NGN 8063952
5.0%
1
Qatar
NGN 8063948
5.0%
2
Saudi Arabia
NGN 7872227
7.3%
3
Bahrain
NGN 7809311
8.0%
4
Oman
NGN 7809311
8.0%
5
Kuwait
NGN 7554623
11.0%
6
Israel
NGN 7372148
13.2%
7
Egypt
NGN 6689543
21.2%
8
Lebanon
NGN 6682961
21.3%
9
Turkey
NGN 5260797
38.0%
10
Show more
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.