This is tax calculator. It's a free SME toolkit utility. It calculates income tax called Pay As You Earned tax amount (PAYE) that is deductible from staff salary according to the requirements of Nigeria personal income tax Act of 2011 (PITA 2011). It helps employer with filing tax return to revenue agency while it provides means for employees to verify PAYE tax deducted from their paycheck.

Finance Act 2020 becomes effective from January 1st, 2021. This new Act exempts national minimum wage earners from paying the mandatory minimum tax. As of January 1st, 2021, thirty thousand Naira (30,000 NGN) is the monthly minimum wage in Nigeria. Consequently, PAYE tax is zero for all those who earn 30,000 Naira monthly (or less).
We wish to announce that SME Payroll is fully compliant with the Finance Act 2020.

Employment PAYE Tax Calculator

 

 
DESCRIPTION
MONTHLY
YEARLY
50%
25%
25%
Gross Pay ()
100,000.00
1,200,000.00
Taxable Income ()
58,333.33
700,000.00
PAYE Tax ()
5,750.00
69,000.00
Effective Tax Rate (%)
5.75
5.75
Total Deductions ()
10,750.00
129,000.00
Net Salary ()
89,250.00
1,071,000.00