Income tax calculator Nigeria
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₦87,840
Income Tax
- ₦8,793
National Housing Fund (NHF)
- ₦2,196
Pension contributions
- ₦7,027
Total tax
- ₦18,016
Net pay
*
₦69,824
Marginal tax rate
23.9%
Average tax rate
20.5%
79.5%
Net pay
20.5%
Total tax
Total tax
Net pay
The Taxberg
₦69,824
Net pay
₦10,541
Tax the employer pays
₦18,016
Tax you pay
Total tax paid
₦28,557
Did you know your employer also pays tax on your salary? It costs the employer ₦10,541 to pay you ₦87,840. 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 ₦1,054,080 a year living in Nigeria, you will be taxed ₦216,189. That means that your net pay will be ₦837,891 per year, or ₦69,824 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.
Compare average tax
North America
Country
Net pay
Average tax
Rank
Canada
NGN 1037422
1.6%
1
USA
NGN 962777
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.