| Our effort here is to give you a table with which to read off the tax you are
expected to pay per month based on your monthly gross taxable income.
The following are the exceptions you need to note in using this table:
1. Exclude items that are not taxable
2. We have excluded from our calculations the Tax EXEMPTS – Pension, NHF, Life assurance, etc
3. Use your monthly pay figures
4. In arriving at the tax payable we have applied the two statutory RELIEF
5. We also use the Tax table
6. Not to make the table too long, we started from a Gross Pay of N45,000.00 and a range of N5000
Now let me give you a simple example to illustrate how to use the Nigerian Tax Calculation table.
**** Say Mr Okoro Mohammed Oluwole earned a gross salary for the month of February 2012: N120,000.00.
Lets say he also:
a) Paid N15,000.00 for Pension
b) N15,000.00 was official journey taxi expenses refund to him through payroll
c) Life Assurance premium paid by Mr Oluwole for the month of Feb 2012 N10,000
Now calculate whats taxable:
GrossPay = N120,000.00
Life Assurance N10,000.00
Taxable Pay N80,000.00
The tax payable on N80,000.00 taxable pay is N4, 206.67
If you dont have any of the EXEMPTIONS to claim, then your tax will be based on N120,000.00 which then amounts to N8,900.00
You can confirm these figures by looking at the table below