Nigeria Salary Tax Calculator
Calculate your exact take-home pay after all deductions
Salary Details
Standard employee contribution is 8% of gross salary (Pension Reform Act 2014)
Standard NHF deduction is 2.5% of basic salary (capped at ₦2,500/month)
Any other statutory or voluntary deductions (e.g., union dues, cooperatives)
Salary Breakdown
Salary Visualization
Disclaimer: This calculator provides estimates based on current Nigerian tax laws. For official calculations, please consult your HR department or tax advisor. PAYE rates follow the Nigerian progressive tax system (7% – 24%).
Tax calculation in nigeria: Instantly Know Your Take-Home Pay
Understanding how much tax is deducted from your salary in Nigeria can be confusing, especially when you're trying to plan a monthly budget or evaluate a job offer. That’s where a Nigeria Salary Tax Calculator becomes an essential tool. This article will guide you through how salary tax works in Nigeria, how to use a salary tax calculator effectively, and why it’s important to know your take-home pay.
💼 What Is a Salary Tax Calculator?
A salary tax calculator is an online tool that helps you estimate your net salary after taxes and statutory deductions are applied. It factors in:
- Personal Income Tax (PIT) under Nigeria's Pay-As-You-Earn (PAYE) system
- Pension contributions
- National Housing Fund (NHF) deductions
- Other applicable levies (such as NSITF, ITF)
With a reliable Nigeria salary tax calculator, you get to see the actual amount you’ll receive in your bank account each month.
📊 Breakdown of Salary Tax in Nigeria
1. PAYE Tax Structure
Nigeria operates a progressive tax rate for income earners:
| Annual Taxable Income (₦) | Tax Rate |
|---|---|
| First ₦300,000 | 7% |
| Next ₦300,000 | 11% |
| Next ₦500,000 | 15% |
| Next ₦500,000 | 19% |
| Next ₦1,600,000 | 21% |
| Above ₦3,200,000 | 24% |
2. Pension Contribution
- Employee: 8%
- Employer: 10%
3. National Housing Fund (NHF)
- 2.5% of monthly basic salary (optional for some organizations)
4. Other Possible Deductions
- NSITF – Nigeria Social Insurance Trust Fund (1%)
- ITF – Industrial Training Fund (1%) (mostly employer)
💡 Why Use a Salary Tax Calculator in Nigeria?
- Instantly know your net pay
- Plan better with accurate take-home estimates
- Evaluate job offers realistically
- Helps in monthly budgeting
- Makes it easier to file taxes or raise complaints
🔢 How to Use the Nigeria Salary Tax Calculator
- Enter Your Gross Monthly Salary
- Select any applicable allowances or exemptions
- Indicate your pension status (mandatory or voluntary)
- Click Calculate
The calculator will automatically compute your total tax, statutory deductions, and net salary.
🔍 Example: Monthly Salary of ₦500,000
| Deduction Type | Amount (₦) |
|---|---|
| PAYE Tax | ₦37,000 |
| Pension (8%) | ₦40,000 |
| NHF (2.5%) | ₦12,500 |
| Total Deductions | ₦89,500 |
| Net Salary | ₦410,500 |
Note: This is an estimate. Actual deductions may vary.
✅ Key Benefits of Knowing Your Take-Home Pay
- Avoid surprises on payday
- Helps with loan applications and planning
- Understand the true value of your salary package
- Helps in setting saving goals
🌐 Where to Find a Nigeria Salary Tax Calculator?
You can find salary tax calculators on reputable platforms such as:
- paycalculator.ng
- salaries.ng
- Some fintech and HR platforms
Or you can even build one yourself using Excel or Google Sheets!
🔐 Is It Safe to Use Online Salary Calculators?
Yes—as long as you avoid submitting sensitive personal information (e.g., BVN or bank details). Use only reputable calculators that require non-intrusive data like salary and deductions.
📌 Conclusion: Know Before You Earn
With the right Nigeria Salary Tax Calculator, you’re empowered to make better financial decisions, whether you're changing jobs, negotiating a raise, or planning your future.
📝 Quick Summary
- PAYE tax rates in Nigeria range from 7% to 24%
- Statutory deductions include pension (8%), NHF (2.5%), and others
- A salary tax calculator helps you understand your net salary
- Use tools from trusted Nigerian payroll or tax websites
- Always review deductions before accepting a salary offer
