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✔ Complete income tax, PAYE calculations and salary example for ₦ 78,500.00 salary per annum
This income tax and PAYE calculation for an individual earning ₦ 78,500.00 per annum in Nigeria is provided to allow you to compare salaries and understand the tax and payroll deductions that are applied during the 2017/18 tax year in accordance with Nigeria Tax law.
The ₦ 78,500.00 salary income tax calculation uses default setting to illustrate Housing Allowance, Transport Allowance, Utility Allowance etc. applying 0.5% of income to illustrate the tax exemption thresholds and calculations applied. You can produce your own bespoke income tax calculation by entering your own income and expenditure for 2017/18 in the Nigeria Income Tax Calculator.
This salary, PAYE and tax examples provides an overview of salary deductions followed by the details of the calculations and explanation of how income tax is calculated and deducted from your salary when paying income tax in Nigeria. Our aim is to make the tax calculation transparent so you can clearly understand how your tax, salary deductions and contributions are calculated in Nigeria.
| Yearly | %1 | Salary/Tax Component |
|---|---|---|
| ₦78,500.00 | 100.00% | Gross Income |
| ₦2,355.00 | 3.00% | Housing Allowance |
| ₦2,355.00 | 3.00% | Utility Allowances |
| ₦2,355.00 | 3.00% | Meal & Ents. Allowance |
| ₦2,500.00 | 3.18% | Child deduction |
| ₦4,000.00 | 5.10% | Dependant deduction |
| ₦5,495.00 | 7.00% | Leave Allowance |
| ₦5,495.00 | 7.00% | Pension Contributions |
| ₦53,945.00 | 68.72% | Taxable income |
| ₦3,776.15 | 4.81% | PAYE |
| ₦28,331.15 | 36.09% | Total Deductions |
| ₦50,168.85 | 63.91% | Net Pay |
| ₦78,500.00 | 100.00% | Salary Package [Cost of Employee] |
1 Percentage expressed in relation to Gross Income [₦78,500.00].
In Nigeria, PAYE Income Tax is calculation based on the amount you earn. Income tax is calculated on a threshold basis with different rates applied depending on your income. The table below illustrates an income tax calculation for a ₦ 78,500.00 per annum salary with regular amount deducted through PAYE by the employer.
| ₦53,945.00 | Taxable Income in 2017 | |
| - | ₦3,776.15 | Taxable amount due in within ₦0.00 - ₦300,000.00 income tax threshold (7%) |
| = | ₦3,776.15 | Income tax due in 2017 |
The example below shows how Taxable Income is calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| ₦78,500.00 | Annual Salary in 2017 | |
| - | ₦2,355.00 | Housing Allowance Deduction in 2017 |
| - | ₦0.00 | Transport Allowance Deduction in 2017 |
| - | ₦2,355.00 | Utility Allowances Deduction in 2017 |
| - | ₦2,355.00 | Meal and Entertainment Allowances in 2017 |
| - | ₦2,500.00 | Child Tax Credit Deduction in 2017 |
| - | ₦4,000.00 | Dependant Tax Credit Deduction in 2017 |
| - | ₦5,495.00 | Leave Allowance Deduction in 2017 |
| = | ₦53,945.00 | Taxable Income in 2017 |
The example below shows how Employer Pension Contributions are calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| ₦78,500.00 | Annual Income in 2017 | |
| ₦0.00 | Employer Pension Contribution rate in 2017 | |
| = | ₦0.00 | Employer Pension Contributions in 2017 |
Disclaimer: whilst we aim for 100% accuracy in our payroll, tax and salary calculations we make no guarantee as to the accuracy of the information herein. This tool is provided free of charge to support those who are looking at alternate salaries or to improve the knowledge and understanding of income tax in Nigeria, it is not a 100% accurate tax return or tax refund calculation. If however you do spot a mistake in our calculations, the rates or thresholds used, please get in touch.
The example below shows how Leave Allowance is calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| 7 | Leave Allowance claimed for in 2017 | |
| 10 | Maximum Leave Allowance in 2017 | |
| = | ₦7.00 | Leave Allowance in 2017 |
| x | ₦78,500.00 | Annual Salary in 2017 |
| = | ₦5,495.00 | Leave Allowance Deduction in 2017 |
The example below shows how Dependant Tax Credits are calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| 2 | Number of dependants claimed for in 2017 | |
| 2 | Maximum number of qualifying dependants in 2017 | |
| = | 2 | No of qualifying dependant for Dependant Tax Credit in 2017 |
| x | ₦2,000.00 | Dependant Tax Credit per child in 2017 |
| = | ₦4,000.00 | Dependant Tax Credit Deduction in 2017 |
The example below shows how Child Tax Credits are calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| 1 | Number of children claimed for in 2017 | |
| 4 | Maximum number of qualifying children in 2017 | |
| = | 1 | No of qualifying chidren for Child Tax Credit in 2017 |
| x | ₦2,500.00 | Child Tax Credit per child in 2017 |
| = | ₦2,500.00 | Child Tax Credit Deduction in 2017 |
The example below shows how Employee Pension Contributions are calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| ₦78,500.00 | Annual Income in 2017 | |
| ₦0.00 | Employer Pension Contribution rate in 2017 | |
| = | ₦0.00 | Employer Pension Contributions in 2017 |
The example below shows how Meal and Entertainment Allowances are calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| ₦6,000.00 | Maximum Meal and Entertainment Allowances in 2017 | |
| ₦2,355.00 | Meal and Entertainment Allowances claimed in 2017 | |
| = | ₦2,355.00 | Meal and Entertainment Allowances Deduction in 2017 |
The example below shows how Utility Allowances are calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| ₦10,000.00 | Maximum Utility Allowances in 2017 | |
| ₦2,355.00 | Utility Allowances claimed in 2017 | |
| = | ₦2,355.00 | Utility Allowances Deduction in 2017 |
The example below shows how Transport Allowances are calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| ₦20,000.00 | Maximum Transport Allowance in 2017 | |
| ₦0.00 | Transport Allowance claimed in 2017 | |
| = | ₦0.00 | Transport Allowance Deduction in 2017 |
The example below shows how Housing Allowance is calculated in 2017/18 tax year for an annual salary of ₦ 78,500.00.
| ₦150,000.00 | Maximum Housing Allowance in 2017 | |
| ₦2,355.00 | Housing Allowance claimed in 2017 | |
| = | ₦2,355.00 | Housing Allowance Deduction in 2017 |
Disclaimer: whilst we aim for 100% accuracy in our payroll, tax and salary calculations we make no guarantee as to the accuracy of the information herein. This tool is provided free of charge to support those who are looking at alternate salaries or to improve the knowledge and understanding of income tax in Nigeria, it is not a 100% accurate tax return or tax refund calculation. If however you do spot a mistake in our calculations, the rates or thresholds used, please get in touch. Whilst we make no guarantees on the accuracy on the tax calculations, we do aim to be 100% accurate. This position allows us to support our community without any unnecessary grumpiness or actions from legal folk.