How is employment income tax calculated in Nigeria?

Nigerian progressive PAYE tax ranging from 7% to 24% with CRA and 8% statutory PENCOM pension deduction. The primary tax authority is Federal Inland Revenue Service (FIRS).

What are the statutory deductions in Nigeria?

Statutory deductions include income tax and social contributions (PENCOM Pension: 8.0%).

🇳🇬 Nigeria • Federal Inland Revenue Service (FIRS) (2026)

Nigeria Salary & Income Tax Calculator 2026

Nigerian progressive PAYE tax ranging from 7% to 24% with CRA and 8% statutory PENCOM pension deduction. Governed by Personal Income Tax Act (PITA).

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Tax Jurisdiction

Paycheck Period

Gross Monthly Basic Salary

Enter pre-tax contracted compensation before statutory deductions

₦

₦ 0₦ 1,000,000₦ 2,000,000

Presets:

Estimated Take-Home Paycheck (MONTHLY)

₦ 361,333

After all statutory taxes (Nigeria) & mandatory pension levies

Gross Earnings₦ 500,000

Income Tax- ₦ 98,667

Pension / Social- ₦ 40,000

Effective Rate19.73%

Keep Ratio72.3%Take-Home

Paycheck DistributionMONTHLY

Net Take-Home

₦ 361,333 (72.3%)

Income Tax (PAYE)

-₦ 98,667 (19.7%)

Social Security / Pension

-₦ 40,000 (8.0%)

Gross Pre-Tax Salary₦ 500,000

Marginal Tax Bracket Utilization

Layered progressive taxation bands

Statutory

First ₦300,000 (7%) (7.000000000000001%)Assessed: ₦ 21,000

Next ₦300,000 (11%) (11%)Assessed: ₦ 33,000

Next ₦500,000 (15%) (15%)Assessed: ₦ 75,000

Next ₦500,000 (19%) (19%)Assessed: ₦ 95,000

Next ₦1,600,000 (21%) (21%)Assessed: ₦ 336,000

Above ₦3,200,000 (24%) (24%)Assessed: ₦ 624,000

Multi-Frequency Paycheck Breakdown

Statutory Conversions

Frequency	Gross Pay	Income Tax	Social / Pension	Net Take-Home
Annual	₦ 6,000,000	- ₦ 1,184,000	- ₦ 480,000	₦ 4,336,000
Monthly	₦ 500,000	- ₦ 98,667	- ₦ 40,000	₦ 361,333
Bi-Weekly	₦ 230,769	- ₦ 45,538	- ₦ 18,462	₦ 166,769
Weekly	₦ 115,385	- ₦ 22,769	- ₦ 9,231	₦ 83,385
Daily (260d)	₦ 23,077	- ₦ 4,554	- ₦ 1,846	₦ 16,677
Hourly (2080h)	₦ 2,885	- ₦ 569	- ₦ 231	₦ 2,085

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Popular Salary Milestones in Nigeria

Pre-computed take-home pay and tax deduction tables for benchmark compensation levels.