NECO 2024 · Paper 1 · Q6

A man with an annual salary of ₦1,300,000.00 is to pay an income tax of 22%22\%. Calculate his tax, if his allowances amount to ₦137,000.00.

Worked solution (try it first)
  1. Allowances are not taxed, so the taxable income is 1 300 000−137 000=1\,300\,000 - 137\,000 = ₦1,163,000.
  2. The tax is 22%22\% of that: 0.22×1 163 000=255 8600.22 \times 1\,163\,000 = 255\,860.
  3. So his tax is ₦255,860.00, option B.

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