Nigeria

Individual - Sample personal income tax calculation

Last reviewed - 29 May 2026

Below 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 there is no NHF deduction.

		NGN	NGN
Gross income (GI)			25,000,000
Less reliefs:
Rent relief	Lower of NGN 500,000 or
Rent relief	20% of annual rent (20%* NGN 2,000,000)	400,000
Pension	8% of GI	2,000,000	(2,400,000)
Taxable income			22,600,000

Annual income	PIT rate (%)	Tax payable (NGN)	NGN
First 800,000	0	0
Next 2,200,000	15	330,000
Next 9,000,000	18	1,620,000
Next 13,000,000	21	2,226,000
Next 25,000,000	23	-
Above 50,000,000	25	-

PAYE			4,176,000

Net income			18,424,000