Nigeria Income Tax Calculator
Calculate Nigerian income tax (PAYE) with progressive rates 7%-24%, Consolidated Relief Allowance (CRA), pension and NHF contributions, life assurance relief under FIRS tax system.
Enter amounts in Nigerian Naira
Annual gross income before deductions
Higher of: (1% + ₦200,000) or 20% of gross
8% employee contribution is tax-deductible
2.5% of basic salary, tax-deductible
Nigeria Income Tax Calculator
Enter your gross income and tax details to calculate your net salary.
Understanding Nigerian PAYE Tax
Progressive Tax
FIRS uses 6 tax brackets from 7% to 24% based on your taxable income level.
CRA Allowance
The Consolidated Relief Allowance significantly reduces your taxable income.
NHF & Pension
Pension and NHF contributions are tax-deductible expenses.
2024 PAYE Tax Brackets
Progressive rates applied to taxable income.
Tax Relief & Deductions
Allowable deductions reduce taxable income.
- CRAConsolidated ReliefHigher of (1% + ₦200K) or 20%
- 8%Pension ContributionEmployee's 8% contribution
- 2.5%National Housing Fund2.5% of basic salary
Frequently Asked Questions
What is the Consolidated Relief Allowance (CRA)?
The CRA combines various allowances into one. It's calculated as the higher of (1% of gross income + ₦200,000) or 20% of gross income. This is automatically deducted before tax calculation.
Is pension contribution mandatory?
Yes, under the Pension Reform Act, all employees in organizations with 3+ staff must contribute 8% of their monthly emoluments to a Retirement Savings Account (RSA).
What is the National Housing Fund (NHF)?
NHF is a mandatory 2.5% contribution of basic salary for employees earning ₦3,000+ monthly. It's managed by the Federal Mortgage Bank of Nigeria and helps access affordable housing loans.
When must employers remit PAYE?
Employers must deduct and remit PAYE to the relevant State Internal Revenue Service within 10 days of the following month. Late payment attracts penalties.