🇳🇬 Nigeria Personal Income Tax Act (PITA) & Finance Act
Nigeria PAYE Income Tax Calculator
Accurate PAYE calculator with Consolidated Relief Allowance (CRA), statutory pension (8%), National Housing Fund (2.5%), progressive brackets (7%–24%), and minimum wage exemption.
💼 Salary & Statutory Inputs
₦
Total earnings including Basic, Housing, Transport, and regular allowances.
%
Standard Nigerian salary split: 50% Basic, 30% Housing, 20% Transport.
%
Under PRA 2014, Pension is 8% of Basic + Housing + Transport (BHT).
🛡️ Statutory Deductions & Reliefs
₦
Tax-deductible insurance premiums paid on taxpayer's or spouse's life.
📊 Tax & Take-Home Summary
Net Monthly Take-Home Pay
₦0
Annual Net: ₦0
Gross Income (Monthly) ₦0
Pension Contribution (8%) -₦0
National Housing Fund (2.5%) -₦0
Consolidated Relief Allowance (CRA) ₦0
Taxable / Chargeable Income ₦0
PAYE Income Tax (Monthly) -₦0
Annual Total PAYE Tax -₦0
Effective PAYE Tax Rate 0.00%
PITA Progressive Tax Brackets Annual Tax
First ₦300,000 @ 7% ₦0
Next ₦300,000 (300k - 600k) @ 11% ₦0
Next ₦500,000 (600k - 1.1M) @ 15% ₦0
Next ₦500,000 (1.1M - 1.6M) @ 19% ₦0
Next ₦1,600,000 (1.6M - 3.2M) @ 21% ₦0
Above ₦3,200,000 @ 24% ₦0
📜 How Nigeria PAYE Tax is Calculated (Finance Act & PITA)
Under the Personal Income Tax Act (PITA Cap P8 LFN 2011 as amended by Finance Acts 2020 & 2023), PAYE (Pay-As-You-Earn) tax is deducted monthly from all formal employment income:
- Consolidated Relief Allowance (CRA): Higher of ₦200,000 or 1% of Gross Income + 20% of Adjusted Gross Income (Gross less non-taxable statutory deductions like Pension and NHF).
- Statutory Pension (PRA 2014): Minimum 8% of BHT (Basic + Housing + Transport) is tax-exempt and deducted directly at source.
- National Housing Fund (NHF): 2.5% of Basic salary for qualifying employees earning above statutory minimum wage.
- Minimum Wage Exemption: Under Section 37 of PITA (amended by Finance Act 2020), individuals who earn the National Minimum Wage or less are completely exempt from personal income tax.
- Minimum Tax: If calculated tax is lower than 1% of Gross Emoluments, 1% minimum tax applies (unless exempted by minimum wage status).
📊 Statutory Breakdown Matrix
| Statutory Component | Amount / Metric |
|---|---|
| Statutory Pension Contribution (8%) | -- |
| Net Chargeable Taxable Income | -- |
| Monthly PAYE Tax Liability | -- |
| Total Annual PAYE Withholding | -- |
| Effective Income Tax Rate | -- |
| Net Monthly Take-Home Pay | -- |
MS
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Statutory Compliance Specialist
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.