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Tax Rates

PAYE and NSSF rates for 2014.

PAYE

PAYE rates in effect as from 1st July 2014:

Monthly Taxable Pay (Tsh) Annual Taxable Pay (Tsh) Rate of Tax (%)
Up to 170,000 Up to 2,040,000 0
170,001 - 360,000 2,040,001 - 4,320,000 12
360,001 - 540,000 4,320,001 - 6,480,000 20
540,001 - 720,000 6,480,001 - 8,640,000 25
Above 720,000 Above 8,640,000 30

PAYE rates in effect up to 30th June 2014:

Monthly Taxable Pay (Tsh) Annual Taxable Pay (Tsh) Rate of Tax (%)
Up to 170,000 Up to 2,040,000 0
170,001 - 360,000 2,040,001 - 4,320,000 13
360,001 - 540,000 4,320,001 - 6,480,000 20
540,001 - 720,000 6,480,001 - 8,640,000 25
Above 720,000 Above 8,640,000 30

Other PAYE Parameters:

  1. Maximum allowable pension fund contribution is currently Tsh 2,400,000 per annum or Tsh 200,000 per month.
  2. Statutory interest rate for computing low interest benefit on loans to employees is 12% per annum or 1% per month (w.e.f. from 1st January 2012).

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.