Nigeria Tax Tables 2020 - Tax Rates and Thresholds in Nigeria
This page contains the tax table information used for the calculation of tax and payroll deductions in Nigeria in 2020. These tax tables are used for the tax and payroll calculators published on iCalculator™ NG, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Nigeria or would like to add to or suggest amendments to the information herein then please contact us.
2020 Tax Tables [Quick Links]
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Nigeria Personal Income Tax Tables in 2020
The Income tax rates and personal allowances in Nigeria are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Nigeria Tax Calculator 2020.
Nigeria Residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)Tax Rate | Taxable Income Threshold |
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7% | Income from ₦ 0.000.00 | to | ₦ 300,000.00 |
11% | Income from ₦ 300,000.01 | to | ₦ 600,000.00 |
15% | Income from ₦ 600,000.01 | to | ₦ 1,100,000.00 |
19% | Income from ₦ 1,100,000.01 | to | ₦ 1,600,000.00 |
21% | Income from ₦ 1,600,000.01 | to | ₦ 3,200,000.00 |
24% | Income from ₦ 3,200,000.01 | | and above |
Nigeria Non-residents Income Tax Tables in 2020
Personal Income Tax Rates and Thresholds (Annual)Tax Rate | Taxable Income Threshold |
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7% | Income from ₦ 0.000.00 | to | ₦ 300,000.00 |
11% | Income from ₦ 300,000.01 | to | ₦ 600,000.00 |
15% | Income from ₦ 600,000.01 | to | ₦ 1,100,000.00 |
19% | Income from ₦ 1,100,000.01 | to | ₦ 1,600,000.00 |
21% | Income from ₦ 1,600,000.01 | to | ₦ 3,200,000.00 |
24% | Income from ₦ 3,200,000.01 | | and above |
In Nigeria, social security deductions, such as contributions to the National Pension Scheme, National Health Insurance Scheme (NHIS), and the National Housing Fund (NHF), are generally deductible when calculating taxable income. This means that the amounts contributed towards these schemes by employees can be subtracted from their gross income before applying the income tax rates. This provision helps reduce the taxable income of employees, potentially lowering their overall income tax liability and encouraging participation in these social security programs.
Nigeria Social Security and Payroll Deduction Rates in 2020
In Nigeria, social security and payroll deductions form an essential part of the employment landscape, providing a safety net for employees while contributing to national welfare schemes. These deductions are made from employees' salaries and, in some cases, are matched or supplemented by employers. The primary goal is to fund various social and welfare programs that benefit the workforce and the broader society. This article explores the different types of social security and payroll deductions in Nigeria, explaining the purpose of each.
Nigeria Social Security in 2020: Rates for Employers and EmployeesCategory | Employee | Employer | Total |
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Pension | 8% | 10% | 18% |
National Social Insurance Trust Fund (NSITF) | 0% | 1% | 1% |
Industrial Training Fund (ITF) | 0% | 1% | 1% |
National Housing Fund (NHF) | 2.5% | 0% | 2.5% |
Nigeria Social Security and Payroll Deduction in 2020: Earnings Thresholds for Employers and EmployeesCategory | Employee | Employer |
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Min. | Max. | Min. | Max. |
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Pension | n/a | n/a | n/a | n/a |
National Social Insurance Trust Fund (NSITF) | n/a | n/a | n/a | n/a |
Industrial Training Fund (ITF) | n/a | n/a | n/a | n/a |
National Housing Fund (NHF) | ₦ 30,000.00 | n/a | n/a | n/a |
Nigeria VAT Rates in 2020
VAT rates for Nigeria are reviewed annually, you can use the VAT Calculator to calculate VAT due in Nigeria or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Nigeria VAT RatesVAT Rate | VAT Description |
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0% | Zero Rated |
5% | Standard Rate |
Historic Tax Tables supported for Nigeria
The following tax tables are supported by iCalculator™ NG as part of the suite of free tax tools we provide for Nigeria.