Nigeria

Individual - Sample personal income tax calculation

Last reviewed - 09 February 2024

Below is the basis of PAYE calculation for an individual whose gross income is NGN 4 million. For the purpose of this calculation, it is assumed that pension is calculated at 8% of gross income and no NHF deduction.

		NGN	NGN
Gross income (GI)			4,000,000
Gross income (GI2) for consolidated relief allowance purposes (i.e. GI less pension)		3,680,000
Less reliefs:
Consolidated relief allowance	Higher of NGN 200,000 or 1% of GI	200,000
Consolidated relief allowance	20% of GI2	736,000
Pension	8% of GI	320,000	(1,256,000)

Taxable income			2,744,000

Annual income (NGN)	PIT rate (%)	Tax payable (NGN)	NGN
First 300,000	7	21,000
Next 300,000	11	33,000
Next 500,000	15	75,000
Next 500,000	19	95,000
Next 1,600,000	21	240,240
Over 3,200,000	24

Gross income			4,000,000

PAYE		464,240	(464,240)

Net income after PAYE			3,535,760