Tanzania PAYE
Calculator 2025/26

TRA progressive tax (0%–30%), NSSF social security (10% employee), Skills Development Levy (3.5% employer), Workers Compensation Fund (0.5%). Monthly computation per TRA bands.

✦ Includes AI Advisor TRA 2025/26 Verified NSSF · SDL · WCF TZS · Tanzanian Shilling

Last verified: July 2025 · Source: TRA (tra.go.tz) · Income Tax Act 2004 · Finance Act 2024/25

Also see: Tanzania VAT Calculator

2025/26 Key Facts: PAYE bands unchanged — tax-free threshold TZS 270,000/month (TZS 3,240,000/year). Top rate remains 30% above TZS 1,000,000/month. NSSF total 20% (employer 10% + employee 10%), no cap. SDL remains 3.5% employer-only for 10+ employee organisations. Secondary employment taxed at flat 30% at source. Finance Act 2025 note: WCF rate remains 0.5% private sector.

Enter Your Details Tanzanian Shilling · TZS
SectorDetermines social security fund
Monthly Gross Salary TZS 1,500,000
TZS 100,000TZS 20,000,000
Or type exact monthly amountBefore any deductions
TZS
Active DeductionsToggle to include / exclude
NSSF (private)
10% employee — tax-deductible
Secondary Employment
Flat 30% no deductions

NSSF employee contribution (10%) is fully deductible from taxable income before PAYE is calculated. Employer NSSF (10%) is an additional cost shown in employer chart. No NSSF cap — applies to full gross salary.

Monthly Take-Home Pay
TZS 0
After PAYE, NSSF & all deductions
Effective Tax Rate 0%

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TRA 2025/26 Monthly Bands ▾
TZS 0 – 270,0000% — exempt
TZS 270,001 – 520,0008% on excess above 270k
TZS 520,001 – 760,000TZS 20,000 + 20% on excess
TZS 760,001 – 1,000,000TZS 68,000 + 25% on excess
Above TZS 1,000,000TZS 128,000 + 30% on excess

Calculated monthly on taxable income (gross minus NSSF/PSSSF). Annual tax-free threshold: TZS 3,240,000. Secondary employment: flat 30% on gross, no deductions.

NSSF · SDL · WCF Rates 2025 ▾
Employee NSSF (private sector)10% of gross (no cap)
Employer NSSF (private sector)10% of gross (no cap)
Employee PSSSF (public sector)5% of basic salary
Employer PSSSF (public sector)15% of basic salary
SDL (employer only, 10+ staff)3.5% of gross emoluments
WCF (employer only, private)0.5% of monthly wage bill

NSSF/PSSSF employee contribution deductible from taxable income. SDL due by 7th of following month (same as PAYE). NSSF due end of following month. No cap on NSSF contributions.

Disclaimer: For informational purposes only. Not professional tax or legal advice. Rates based on Tanzania Income Tax Act 2004, Finance Act 2024/25. Verify with TRA (tra.go.tz) or a qualified Tanzanian tax advisor.
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How Tanzania PAYE Tax Is Calculated 2025/26

Tanzania's Pay As You Earn (PAYE) system is administered by the Tanzania Revenue Authority (TRA) and applies to all employees earning income from employment sources in Tanzania. Employers must register with TRA, deduct PAYE monthly, and remit it alongside the Skills Development Levy (SDL) by the 7th of the following month. Non-compliance attracts penalties of 2.5% per month on outstanding amounts. The Income Tax Act 2004 (as amended) and Finance Acts provide the legislative basis for PAYE in Tanzania.

Tanzania uses a five-band progressive PAYE structure applied on monthly taxable income after NSSF deduction. The first TZS 270,000 per month is completely tax-free. Income between TZS 270,001 and TZS 520,000 is taxed at 8%. Above TZS 520,000 up to TZS 760,000, tax is TZS 20,000 plus 20% on the excess. From TZS 760,001 to TZS 1,000,000, tax is TZS 68,000 plus 25% on the excess. Above TZS 1,000,000 per month, tax is TZS 128,000 plus 30% on the excess. These are marginal rates — only the income within each band is taxed at that rate.

Beyond PAYE, Tanzanian payroll involves several employer levies. The Skills Development Levy (SDL) is 3.5% of the total monthly gross wage bill and is entirely an employer cost — not deducted from employee pay. It applies to organisations employing 10 or more workers on mainland Tanzania. The Workers' Compensation Fund (WCF) is an additional 0.5% employer contribution covering workplace injury insurance. NSSF contributions are 10% from the employee and 10% from the employer (private sector), while public sector employees use the PSSSF at 5% each side.

For employees with a second job in Tanzania, secondary employment income is subject to a flat 30% withholding tax at source with no deductions allowed — a deliberate measure to prevent gaming of the progressive bands across multiple employers. All employment income is denominated in Tanzanian Shillings (TZS). Tanzania's economy is East Africa's second-largest with a GDP of approximately $80 billion, and mobile money via M-Pesa and Airtel Money is widely used for payroll disbursement.

Tanzania PAYE Tax Bands 2025/26 (Monthly)

Monthly Band (TZS) Rate
0 – 270,0000%
270,001 – 520,0008%
520,001 – 760,00020%
760,001 – 1,000,00025%
Over 1,000,00030%
Tanzania Tax FAQ

Common PAYE Questions

What are the Tanzania PAYE tax bands for 2025/26?

Five monthly bands: 0% on first TZS 270,000; 8% on TZS 270,001–520,000; TZS 20,000 plus 20% on TZS 520,001–760,000; TZS 68,000 plus 25% on TZS 760,001–1,000,000; TZS 128,000 plus 30% above TZS 1,000,000. These bands are applied monthly against taxable income (after NSSF deduction).

Is NSSF contribution deductible from PAYE taxable income?

Yes — the employee's mandatory 10% NSSF contribution (private sector) or 5% PSSSF contribution (public sector) is fully deductible from gross pay before calculating PAYE. This reduces your taxable income and therefore your PAYE tax. The employer's matching contribution is a separate employer cost, not deducted from your pay.

What is the Skills Development Levy (SDL)?

SDL is an employer-only payroll tax of 3.5% of gross monthly emoluments, paid to TRA by the 7th of the following month alongside PAYE. It applies to organisations employing 10 or more people on Tanzania Mainland (4+ in Zanzibar). SDL is not deducted from employee pay — it's an additional cost borne entirely by the employer.

How is secondary employment taxed in Tanzania?

Income from a second job in Tanzania is taxed at a flat rate of 30% at source, with no deductions or tax-free band allowed. This is a final withholding tax — the secondary employer withholds 30% of the full gross amount and remits it to TRA. This prevents the progressive bands from being applied twice across two employers.

What is the Workers' Compensation Fund (WCF)?

WCF is an employer-only contribution of 0.5% of the monthly gross wage bill for private sector employers (0.5% for public sector too). It funds compensation for employees injured at work. WCF returns are filed annually (1 March to 28 February), with monthly payments. This is separate from SDL and NSSF.

When must employers remit PAYE to TRA?

PAYE and SDL must be filed and paid to TRA by the 7th day of the month following the payroll month. NSSF and WCF contributions are due by the end of the following month. Late payment attracts penalties of 2.5% per month (minimum TZS 100,000 for individuals). Employers must file a monthly PAYE return even for nil-tax months.