Example 3 A man has a total income of N528 000 pe month. He has three young children. He claims \( \$ 37000 \) for a dependent relative. Calculate the amount of tax he pays.

The man’s total income is N528,000 per month, which means he earns N6,336,000 annually (N528,000 x 12). To calculate the tax, you would first need to determine his taxable income. After claiming the dependent relative's allowance of N37,000, his taxable income is N6,299,000. Assuming a progressive tax rate (like many countries implement), you'll need to refer to the specific tax brackets to calculate the total tax paid. For instance, if the first N250,000 is taxed at 5%, and subsequent brackets at varying rates, this step will help you apply the appropriate rates accordingly to arrive at the total tax due. It's always wise to double-check local tax regulations or use a tax calculator for specific rates. Based on this outline, always make sure to track any applicable deductions, credits, or any changes in tax laws that may apply to your situation for a more accurate calculation!