Income Tax Calculator (PITA)

Calculate your Nigerian Personal Income Tax from your salary and see how RSA pension contributions reduce your tax bill.

Monthly Gross Income

₦

50,0005,000,000

Employee RSA Contribution

0%20%

Additional Voluntary RSA Contribution (Monthly)

₦

0500,000

Annual Tax Breakdown

Monthly Take-Home Pay

₦4,739,200

Annual PITA (Income Tax)

₦780,800

Pension Contributions

₦480,000

Annual Gross Income₦6,000,000

Monthly Take-Home

₦394,933

Effective Tax Rate

13.0%

marginal: 24%

Annual Gross Income₦6,000,000

Less: CRA−₦1,400,000

Less: Pension Deductions−₦480,000

Taxable Income₦4,120,000

Annual PITA₦780,800

Annual tax saved by RSA contributions

₦115,200

₦9,600 saved per month

Disclaimer

This calculator is for educational and illustrative purposes only. It does not constitute financial, investment, or tax advice. Results are estimates based on the inputs you provide and may not reflect actual returns. Consult a qualified financial advisor before making any investment decisions.

Turn The Numbers Into a Plan

Use these calculators to model outcomes, then see how Shares Saver helps you build direct ownership of Nigerian stocks through a regulated, long-term investing process.

Explore the Investment App Learn About Direct Ownership

How Nigerian PITA Is Calculated

Tax = PITA(Gross − CRA − Pension); CRA = 20% × Gross + max(1% × Gross, ₦200k)

Where:

GrossTotal annual employment income including all allowances

CRAConsolidated Relief Allowance — automatic deduction for all taxpayers

PensionRSA contributions (mandatory 8%+ voluntary) deducted before tax

PITA bands7% → 11% → 15% → 19% → 21% → 24% on successive income brackets

Disclaimer: This calculator uses the PITA progressive bands and the Consolidated Relief Allowance as amended by the Finance Acts. Actual PAYE deductions depend on your employer, your state of residence, and any additional levies applicable. This is not tax advice — consult a qualified tax consultant or your company's HR/finance team for your specific situation.

Frequently Asked Questions

Under the Personal Income Tax Act (PITA) as amended by the Finance Act, your taxable income is your gross income minus the Consolidated Relief Allowance (CRA) and any approved pension deductions. CRA equals 20% of gross income plus the higher of 1% of gross income or ₦200,000. Progressive tax bands then apply from 7% on the first ₦300,000 up to 24% on income above ₦3.2 million of taxable income.

Yes. Under the Pension Reform Act 2014, your mandatory employee RSA contribution (minimum 8% of monthly emoluments) is deductible from gross income before PITA is assessed. Additional voluntary contributions to your RSA are also deductible, making them a highly efficient way to both save for retirement and reduce your current tax bill.

Gross income for PITA purposes includes basic salary, housing allowance, transport allowance, meal allowance, and all other employment benefits including leave allowances. Legitimate business expense reimbursements are excluded. Your employer should provide a full breakdown on your payslip.

The CRA replaced the old system of individual personal allowances. It consists of two parts: a flat 20% of gross income, plus the higher of 1% of gross income or ₦200,000. Everyone is entitled to this deduction automatically — you do not need to apply for it. It significantly reduces the taxable income of lower and middle earners.

Nigeria uses a progressive (marginal) tax system. The band rates (7%, 11%, 15%, 19%, 21%, 24%) only apply to the portion of taxable income within each band — not to your entire income. Your effective rate is the total tax divided by total gross income, which is always lower than your marginal (top) rate. This is why high earners may face a 24% marginal rate but only a 12–18% effective rate.