Tax calculators, PDF workspace, currency tools and more — all built for Tanzania. Tax tools updated for Finance Act 2025.
Tanzania's tax system is overseen by the Tanzania Revenue Authority (TRA) and applies a progressive Pay-As-You-Earn (PAYE) structure with rates from 0% to 30% on employment income, all denominated in the Tanzanian Shilling (TZS). The first TSh 270,000 of monthly income is exempt from tax, providing meaningful relief for lower-income workers. Beyond PAYE, Tanzanian employees in the private sector contribute 10% of their gross salary to the National Social Security Fund (NSSF), with employers matching this at 10%, resulting in a combined 20% social security contribution with no upper earnings cap. Public sector employees instead contribute to the Public Service Social Security Scheme (PSSSF) at different rates. Employers with ten or more staff must also pay a 3.5% Skills Development Levy (SDL) on gross payroll, plus a 0.5% Workers' Compensation Fund (WCF) contribution. Tanzania's fiscal year runs from July to June, and the Finance Act 2025 governs the current 2025/26 period. VAT is charged at 18% on most goods and services, with exemptions for unprocessed foodstuffs, medical supplies, and educational materials. Businesses exceeding TSh 100 million in annual turnover must register for VAT. AfroTools provides free PAYE calculators, NSSF contribution tools, SDL estimators, and net salary breakdown calculators specifically calibrated for Tanzania. All tools are updated for the 2025/26 fiscal year and reflect TRA-compliant tax tables to help Tanzanian workers and employers calculate their obligations accurately.
Finance Act 2025 in effect (1 July 2025). PAYE bands remain progressive from 0% (up to TSh 270,000/month) to 30%. NSSF: 20% of gross salary (10%+10%), no cap. SDL: 3.5% for employers with 10+ employees. Fiscal year: July–June.
Tax calculators, document tools, and more — built specifically for Tanzania or available across all 54 African countries.
Official TRA tax bands, NSSF, SDL, and VAT rates for the 2025/26 fiscal year.
| Monthly Taxable Income (TSh) | Annual Equivalent | Rate |
|---|---|---|
| TSh 0 – 270,000 | TSh 0 – 3,240,000/yr | 0% |
| TSh 270,001 – 520,000 | TSh 3,240,001 – 6,240,000/yr | 8% |
| TSh 520,001 – 760,000 | TSh 6,240,001 – 9,120,000/yr | 20% |
| TSh 760,001 – 1,000,000 | TSh 9,120,001 – 12,000,000/yr | 25% |
| TSh 1,000,001 – 3,000,000 | TSh 12,000,001 – 36,000,000/yr | 30% |
| Above TSh 3,000,000 | Above TSh 36,000,000/yr | 30% |
| Component | Details | Rate |
|---|---|---|
| NSSF — Employee (private) | On gross salary | 10% |
| NSSF — Employer (private) | Matched | 10% |
| PSSSF — Employee (public) | On gross salary | 5% |
| PSSSF — Employer (public) | Government | 15% |
| Upper cap | No ceiling | Uncapped |
| Levy | Rate | Applies To |
|---|---|---|
| SDL | 3.5% | Employers with 10+ employees |
| WCF | 0.5% | All employers |
| City Service Levy | Varies | Municipal areas |
| Category | Examples | Rate |
|---|---|---|
| Standard-rated | Most goods & services | 18% |
| Zero-rated | Exports, certain food, agri inputs | 0% |
| Exempt | Unprocessed food, medical, education | Exempt |
| Registration threshold | Turnover exceeding | TSh 100M |
Important updates from the Finance Act 2025.