Annual PAYE Tax
NGN0
Consolidated Relief Allowance (CRA)
NGN0
Taxable Income
NGNNaN
Monthly PAYE
NGN0
Effective Tax Rate
0.00%
Nigeria PAYE Income Tax Calculator — Annual Gross Income (₦) ₹2,70,00,000
With annual gross income (₦) of ₹2,70,00,000, the annual paye tax is NGN48,58,880.
Total annual gross income including basic salary and all allowances
CRA (₦200,000 + 20% of gross) reduces taxable income
Employee pension contribution (8% of monthly emoluments × 12). Tax-deductible.
Consolidated Relief Allowance (CRA)
NGN9,20,000
Taxable Income
NGN23,92,000
Annual PAYE Tax
NGN3,90,320
Monthly PAYE
NGN32,527
Effective Tax Rate
10.84%
Nigeria PAYE based on Personal Income Tax Act (PITA) as amended. CRA = ₦200,000 + 20% of gross income. Pension contributions (8% employee share) are deductible. Minimum tax of 1% of gross income applies if computed tax is lower.
Nigeria PAYE Tax Brackets 2024
| Income Range | 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% |
What is the Nigeria PAYE Income Tax Calculator?
Nigeria's PAYE (Pay As You Earn) system taxes employment income under the Personal Income Tax Act (PITA). Employers deduct tax monthly and remit to the relevant State Internal Revenue Service. Key deductions include the Consolidated Relief Allowance (CRA = ₦200,000 + 20% of gross income) and pension contributions (8% of monthly emoluments). Progressive rates from 7% to 24% apply to taxable income.
Formula
Taxable Income = Gross − CRA (₦200K + 20%) − Pension. PAYE = Progressive slab tax on taxable income.- G
- = Annual gross income
- CRA
- = Consolidated Relief Allowance (₦200K + 20% of gross)
- P
- = Annual pension contribution
- T_PAYE
- = Annual PAYE tax
How to use the Nigeria PAYE Income Tax Calculator
- 1
Step 1
Enter annual gross income (basic salary + all allowances).
- 2
Step 2
Confirm whether CRA applies (yes for most formal employees).
- 3
Step 3
Enter annual pension contribution (8% of monthly emoluments × 12).
- 4
Step 4
View taxable income, annual PAYE, and effective rate.
Reviewed by
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Frequently asked questions
What is the Consolidated Relief Allowance (CRA) in Nigeria?
CRA = ₦200,000 + 20% of gross income. This replaces the old itemized personal relief allowances. On a ₦3.6M salary, CRA = ₦200K + ₦720K = ₦920,000 reduction from taxable income.
What are the PAYE tax rates in Nigeria in 2024?
Nigeria's PAYE rates: 7% on first ₦300K, 11% on next ₦300K, 15% on next ₦500K, 19% on next ₦500K, 21% on next ₦1.6M, 24% on income above ₦3.2M. Maximum marginal rate is 24%.
Is pension deductible from PAYE in Nigeria?
Yes. Employee pension contributions (8% of monthly emoluments — basic + housing + transport) are fully deductible from gross income before PAYE is calculated. Employer contributions (10%) are not counted as employee income.
What is minimum tax in Nigeria?
If the computed PAYE is less than 1% of gross income, the minimum tax of 1% applies. This affects very low income earners where deductions exceed most of the gross income.
Which state receives PAYE in Nigeria?
PAYE is remitted to the State Internal Revenue Service (SIRS) of the state where the employee is resident (principal place of employment). For multiple states, complex rules apply. FIRS handles non-residents and absentee assessments.
Sources
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