President Bola Tinubu enjoined Nigerians to use the newly launched Personal Income Tax calculator to estimate how much would be paid under the tax reforms recently signed into law.
The President explained the Personal income tax calculator, which can be accessed via: https://fiscalreforms.ng/index.php/pit-calculator/, ensure a clear understanding of the impact on individual incomes.
He said “A fair tax system must never punish poverty or weigh down the most vulnerable and that
he has lifted burden and created a path of equity, fairness, and true redistribution in our economy.
A Personal Income Tax Calculator has been developed. It allows you to check your estimated tax under the new laws against what you currently pay.
It shows clearly how these reforms protect low-income earners, ensure progressiveness, and simplify compliance in order to deliver a transparent system that works for all.”
How to calculate tax on salary in Nigeria?
1. Step 1: Determine Your Gross Income. …
2. Step 2: Deduct Pension Contributions (8% of Gross Income) …
3. Step 3: Apply Consolidated Relief Allowance (CRA) …
4. Step 4: Determine the Tax-Exempt Amount: …
5. Step 5: Determine Taxable Income. …
6. Step 6: Apply the Progressive Tax Bands. …
7. Step 7: Sum up the Total Tax.