Employment Income Tax Calculator | Nigeria PAYE Calculator 2024

Last Reviewed: 12-Aug-2024   See Notes
SEE ALSO:  Salary Calculator  |  Reverse Net Salary Calculator  |  Statutory Notes  |  Loan Calculator  |  Import Duty Calculator   |  VAT Calculator  
OTHERS:  Kenya PAYE Calculator  |  Ghana PAYE Calculator  |  Nigeria PAYE Calculator  | South Africa PAYE Calculator  | United States Tax Calculator  
VIDEO:    How to use tax calculator
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DESCRIPTION
MONTHLY
YEARLY
Basic Salary (₦)
50,000.00
600,000.00
Housing Allowance (₦)
25,000.00
300,000.00
Transport Allowance (₦)
25,000.00
300,000.00
Total Pay (₦)
100,000.00
1,200,000.00
Pension (₦)
8,000.00
96,000.00
PAYE Tax (₦)
5,540.00
66,480.00
Total Deductions (₦)
13,540.00
162,480.00
Take-Home Pay (₦)
86,460.00
1,037,520.00
Chargeable Income (₦)
56,933.33
683,200.00
Effective Tax Rate (%)
5.5400 %
5.5400 %
Average Tax Rate (%)
9.7307 %
9.7307 %
Marginal Tax Rate (%)
15.0000 %
15.0000 %
  Red * indicates required input.

Tax Calculator

This free tax calculator can help you in preparartion of tax returns for filing; Also a means for employee to verify Pay As You Earned (PAYE) tax deducted from his or her paycheck.

SME Payroll tax calculator is compliant with taxation of personal income which is determined by the following laws of the Federal Republic of Nigeria:
  1. Personal Income Tax Act Cap P8 Laws of Federation of Nigeria,2004 (PITA 2004)
  2. Personal Income Tax (Amendment) Act 2011 (PITA 2011)
  3. Finance Act, 2019
  4. Finance Act, 2020

Finance Act 2020 becomes effective from January 1st, 2021. This new Act exempts national minimum wage earners from paying the mandatory minimum tax on employment income. 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). Additionally, statutory contributions are excluded from the computation of consolidated relief allowance.

We wish to announce that SME Payroll is fully compliant with the Finance Act 2020 of the Federal Republic of Nigeria.


NHF Change

NHF calculation is now 2.5% of gross income as amended in Finance Act 2023. It is no longer just 2.5% of basic salary.
In Nigeria, the national mininimum wage has been raised from 30,000 Naira to 70,000 Naira monthly in Nigeria.