Nigeria Tax Tables 2024 - 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 2024. 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.

Nigeria Personal Income Tax Tables in 2024

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 2024.

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 2024

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.

The Nigerian social security system includes contributions toward the National Pension Scheme, National Health Insurance Scheme (NHIS), and the National Housing Fund (NHF), among other statutory deductions. These contributions are designed to ensure that employees have support in the areas of retirement, healthcare, and housing, contributing to a more secure social foundation for all citizens.

The National Pension Scheme is a mandatory contribution system for all employees in the formal sector. It aims to provide a stable income to retirees, ensuring they can maintain a decent standard of living after retirement. Both employees and employers contribute to this scheme, which is then managed by licensed Pension Fund Administrators (PFAs). The contributions accumulate over the employee's career and are available upon retirement, ensuring financial stability in later years.

The National Health Insurance Scheme (NHIS) is designed to provide easy access to healthcare for all Nigerians, reducing the out-of-pocket expenditure on health. Through payroll deductions, employees are enrolled in a health insurance plan that grants them access to a variety of medical services. This scheme is vital for improving public health standards and ensuring that all citizens can receive medical attention when needed without the burden of excessive costs.

The National Housing Fund (NHF) is a contribution scheme aimed at facilitating affordable housing for Nigerians. Employees contribute a portion of their monthly income to the fund, which can later be accessed as affordable loans to purchase or build homes. This initiative is designed to increase homeownership among Nigerians, enhancing the standard of living and promoting social stability.

Besides these primary schemes, there are other statutory deductions such as the Employee Compensation Scheme (ECS), which provides compensation to employees who suffer occupational diseases or injuries at work. This ensures that employees are protected against the financial implications of work-related hazards, promoting safer working environments.

Employers in Nigeria are also required to make contributions to these schemes on behalf of their employees, reflecting a shared responsibility towards the welfare of the workforce. These contributions are not only beneficial for the employees but also advantageous for employers, as they lead to a healthier, more secure, and more motivated workforce.

While these social security and payroll deductions represent an additional expense for both employers and employees, they are investments in the well-being and stability of the Nigerian workforce and society at large. By funding retirement, healthcare, housing, and compensation for occupational hazards, these contributions play a crucial role in building a more resilient and equitable society.

In summary, the social security and payroll deduction system in Nigeria is a comprehensive framework designed to address the critical areas of retirement, health, housing, and occupational safety. By ensuring that both employees and employers contribute to this system, Nigeria aims to provide a safety net for its citizens, enhancing their quality of life and securing their future.

Nigeria VAT Rates in 2024

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.

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.