Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₦87,624
Income Tax
- ₦8,764
National Housing Fund (NHF)
- ₦2,191
Pension contributions
- ₦7,010
Total tax
- ₦17,964
Net pay
* ₦69,660
Marginal tax rate
23.9%
Average tax rate
20.5%
79.5%
Net pay
20.5%
Total tax
Total tax
Net pay
The Taxberg
₦69,660
Net pay
₦10,515
Tax the employer pays
₦17,964
Tax you pay
Total tax paid
₦28,479
Did you know your employer also pays tax on your salary? It costs the employer ₦10,515 to pay you ₦87,624. In other words, every time you spend ₦10 of your hard-earned money, ₦3.25 goes to the government.
Real tax rate
29.0%
So, with you and the employer both paying tax, what used to be a 20.5% tax rate now rises to 29.0%, meaning your real tax rate is actually 8.5% higher than what it seemed at first.
Summary
If you make ₦1,051,488 a year living in Nigeria, you will be taxed ₦215,569. That means that your net pay will be ₦835,920 per year, or ₦69,660 per month. Your average tax rate is 20.5% and your marginal tax rate is 23.9%. 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 ₦23.93, hence, your net pay will only increase by ₦76.07.
Bonus Example
A ₦1,000 bonus will generate an extra ₦761 of net incomes. A ₦5,000 bonus will generate an extra ₦3,804 of net incomes.
Africa
Country 
Net pay
Average tax
Rank
South Africa
NGN 1040973
1.0%
1
Uganda
NGN 995094
5.4%
2
Zambia
NGN 988399
6.0%
3
Morocco
NGN 980618
6.7%
4
Ivory Coast
NGN 972626
7.5%
5
Senegal
NGN 958609
8.8%
6
Ghana
NGN 927191
11.8%
7
Kenya
NGN 913605
13.1%
8
Mozambique
NGN 898077
14.6%
9
Cameroon
NGN 887161
15.6%
10
Angola
NGN 838976
20.2%
11
Nigeria
NGN 835920
20.5%
12
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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.