Nigeria

Individual - Sample personal income tax calculation

Last reviewed - 28 January 2020

Below is the basis of pay as you earn (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 7.5% of gross income.

    NGN NGN
Gross income (GI)     4,000,000
       
Less reliefs:      
Consolidated relief allowance Higher of NGN 200,000 or 1% of GI 200,000  
20% of GI 800,000  
Children NGN 2,500 per child (maximum of 4) 10,000  
Dependent relatives (DR) NGN 2,000 per DR (maximum of 2) 4,000  
Pension 7.5% of GI 300,000 (1,314,000)
       
Taxable income     2,686,000

 

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 21 228,060  
Over 3,200,000 24    
       
Gross income     4,000,000
       
PAYE   452,060  (452,060)
       
Net income after PAYE     3,547,940