Tax Rates
PAYE, NSSF, SDL and WCF rates for 2024.
PAYE
PAYE rates in effect as from 1st July 2021:
| Monthly Taxable Pay (Tsh) | Annual Taxable Pay (Tsh) | Rate of Tax (%) |
|---|---|---|
| Up to 270,000 | Up to 3,240,000 | 0 |
| 270,001 - 520,000 | 3,240,001 - 6,240,000 | 8 |
| 520,001 - 760,000 | 6,240,01 - 9,120,000 | 20 |
| 760,001 - 1,000,000 | 9,120,001 - 12,000,000 | 25 |
| Above 1,000,000 | Above 12,000,0000 | 30 |
PAYE rates in effect up to 30th June 2021:
| Monthly Taxable Pay (Tsh) | Annual Taxable Pay (Tsh) | Rate of Tax (%) |
|---|---|---|
| Up to 270,000 | Up to 3,240,000 | 0 |
| 270,001 - 520,000 | 3,240,001 - 6,240,000 | 9 |
| 520,001 - 760,000 | 6,240,01 - 9,120,000 | 20 |
| 760,001 - 1,000,000 | 9,120,001 - 12,000,000 | 25 |
| Above 1,000,000 | Above 12,000,0000 | 30 |
NSSF
Monthly employee contribution is 10% of gross pay. Employer contribution is also 10% of gross pay. There is no upper limit for either contribution.
SDL
The Skills Development Levy (SDL) is levied each month on employers with ten or more employees. It is collected by the Tanzania Revenue Authority. As from 1 July 2023, the amount payable is 3.5% of the total emoluments paid to all employees.
WCF
All employers in mainland Tanzania are required to contribute to the Workers Compensation Fund (WCF). With effect from 1 July 2022 the amount payable is 0.5% of total employee earnings.