Income Tax Calculator Nigeria — PIT 2024 (Personal Income Tax)
Calculate Nigerian income tax with PITA bands and simplified CRA relief. Estimate your tax liability instantly using federal brackets.
Nigeria
PIT (Personal Income Tax)
Income tax payable
NGN 84,000
Net income (after tax)
NGN 916,000
Effective tax rate
8.40%
View the Nigeria tax slabs ↓
| Income range (NGN) | Rate |
|---|---|
| 0 – 300,000 | 7.00% |
| 300,000 – 600,000 | 11% |
| 600,000 – 1,100,000 | 15% |
| 1,100,000 – 1,600,000 | 19% |
| 1,600,000 – 3,200,000 | 21% |
| 3,200,000+ | 24% |
Nigeria: Personal Income Tax slabs per the Nigerian Personal Income Tax (Amendment) Act. Standard consolidated relief allowance of NGN 200K assumed (real allowance depends on individual circumstances).
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How Nigerian Income Tax Really Works
Nigerian income tax (Personal Income Tax, PITA) is not applied to your gross salary. Before any tax is calculated, a Consolidated Relief Allowance (CRA) is deducted from your income. This is where Nigerian tax differs from most other countries, and where most people misunderstand their actual tax liability.
The statutory CRA is the higher of ₦200,000 or 1% of gross income, plus 20% of gross income. Take a ₦5,000,000 gross salary. The first part of the formula compares ₦200,000 against 1% of gross, which is ₦50,000, so ₦200,000 wins. The second part is 20% of gross, or ₦1,000,000. Added together the CRA is ₦1,200,000, leaving ₦3,800,000 as the taxable base. The PITA bands then apply to this reduced figure, not to your gross pay.
This Calculator Simplifies—And That Matters
This calculator applies a simplified, flat ₦200,000 relief rather than the full CRA formula. For most salaries above ₦1,000,000, this approach will show a tax figure that is higher than your actual liability, because the 20% component of the full CRA is missing. This is intentional: a conservative estimate is useful if you know it is conservative—you can plan upward, knowing the real figure is likely lower. The calculator gives you a ceiling, not an exact answer, and that transparency is important.
What Else Reduces Your Taxable Income
Beyond CRA, three additional deductions lower your taxable base before the PITA bands apply: pension contributions to an approved scheme (8% of gross), the National Housing Fund at 2.5% of basic salary, and health insurance contributions where a scheme applies. Together these can reduce the taxable base considerably. Use our Salary Calculator for Nigeria to see the full impact of all deductions in one view.
The Tax Bands and State Administration
Once taxable income is determined, the federal PITA bands apply: 7% on the first ₦300,000, 11% on the next ₦300,000, 15% on the next ₦500,000, 19% on the next ₦500,000, 21% on the next ₦1,600,000, and 24% above ₦3,200,000. One critical point: PITA is administered by state internal revenue services, not the federal government. While rate bands are national, enforcement, filing deadlines, and processing vary by state. Always confirm calculated figures with your state IRS or a qualified tax professional.
How to use the Income Tax Calculator Nigeria 🇳🇬
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- 1Open the tool. Scroll up to the Income Tax Calculator Nigeria 🇳🇬 above — it loads instantly in your browser, no install needed.
- 2Enter your values. The fields come pre-filled with realistic defaults so you can see how it works — replace them with your own numbers.
- 3Read the result. The output updates instantly. Copy or share it — nothing is uploaded to a server, everything stays on your device.
Frequently asked questions
Common questions about the Income Tax Calculator Nigeria 🇳🇬.
What is consolidated relief allowance in Nigeria?
The Consolidated Relief Allowance (CRA) is a deduction applied before tax is calculated. It equals the higher of ₦200,000 or 1% of gross income, plus 20% of gross income. On a ₦5,000,000 salary, CRA is ₦1,200,000, leaving ₦3,800,000 subject to tax. This calculator uses a simplified ₦200,000 flat CRA, which gives a conservative (higher) estimate for most earners.
How is Nigerian income tax calculated?
Nigerian income tax applies PITA federal bands to taxable income after CRA is deducted. The bands range from 7% on the first ₦300,000 to 24% on income above ₦3,200,000. Your state revenue service works from the full allowances plus pension (8% of gross) and National Housing Fund (2.5% of basic) contributions. This calculator uses simplified ₦200,000 relief to provide an estimate.
How much tax on a ₦500,000 salary in Nigeria?
On ₦500,000 gross, after ₦200,000 simplified relief, taxable income is ₦300,000. Tax is 7% × ₦300,000 = ₦21,000. However, actual liability is lower: full CRA (with 20% component) is ₦300,000, leaving ₦200,000 taxable (7% = ₦14,000). Pension and housing-fund contributions reduce this further. Always verify with your state IRS.
Why is my calculated tax higher than I actually pay?
This calculator uses a simplified ₦200,000 flat relief. The true CRA includes a 20% income component, missing here, so estimates are conservative—especially above ₦1,000,000 salary. Pension at 8% of gross and National Housing Fund at 2.5% of basic also reduce the taxable base. For exact figures, confirm with your state IRS or tax professional.
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