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Nigeria
Individual - Sample personal income tax calculation
Last reviewed - 25 May 2026Below is the basis of PAYE calculation for an individual whose gross income is NGN 25 million. For the purpose of this calculation, it is assumed that the individual pays annual rent of NGN2 million, pension is calculated at 8% of gross income and no NHF deduction.
| NGN | NGN | ||
| Gross Income | 25,000,000.00 | ||
| Less reliefs | |||
| Rent Relief | Lower of NGN 500,000 or | ||
| 20% of annual rent (20%* NGN 2,000,000) | 400,000.00 | ||
| Pension | 8% of GI | 2,000,000.00 | (2,400,000.00) |
| Taxable Income | 22,600,000.00 | ||
| Annual Income | PIT Rate (%) | Tax Payable | NGN |
| First 800,000 | 0 | 0 | |
| Next 2,200,000 | 15 | 330,000.00 | |
| Next 9,000,000 | 18 | 1,620,000.00 | |
| Next 13,000,000 | 21 | 2,226,000.00 | |
| Next 25,000,000 | 23 | - | |
| Above 50,000,000 | 25 | - | |
| PAYE | 4,176,000.00 | ||
| Net Income | 18,424,000.00 |
Nigeria contacts
Nigeria contacts
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Chijioke Uwaegbute
Partner, Head of Tax and Regulatory Services, PwC Nigeria
+234 1 271 1700 ext. 54031
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Emuesiri Agbeyi
Partner / Director Tax and Private Wealth Services, PwC Nigeria
+234 1 271 1700 ext. 50006
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Kenneth Erikume
Partner / Director Tax Reporting and Strategy, PwC Nigeria
+234 1 271 1700 ext. 50004
Email