How is income tax calculated in Tanzania?
Tanzania publishes a monthly PAYE table; here it is multiplied by 12. The first TZS 270,000 a month (TZS 3,240,000 a year) is tax-free, then 8%, 20%, 25% and 30% on monthly pay above TZS 1,000,000. Non-residents pay a flat 15% on employment income.
Private-sector employers pay 20% of remuneration to the National Social Security Fund and normally recover half of it (10%) from the employee. That employee contribution is the only amount deductible from employment income, so tax is worked out on pay after it.
What is the income tax rate in Tanzania?
| Taxable income | Rate |
|---|---|
| TZS 0 – TZS 3,240,000 | 0% |
| TZS 3,240,000 – TZS 6,240,000 | 8% |
| TZS 6,240,000 – TZS 9,120,000 | 20% |
| TZS 9,120,000 – TZS 12,000,000 | 25% |
| Over TZS 12,000,000 | 30% |
What mandatory salary deductions apply?
- NSSF (employee share): 10% of pay.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: TZS 7,900,000.00 a month
An employee earning 7,900,000 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | TZS 7,900,000.00 | TZS 94,800,000.00 |
| Income tax | TZS 1,961,000.00 | TZS 23,532,000.00 |
| Compulsory contributions | TZS 790,000.00 | TZS 9,480,000.00 |
| Take-home pay | TZS 5,149,000.00 | TZS 61,788,000.00 |
Effective income tax rate 24.8%; all deductions 34.8%.
Frequently asked questions
Is there a personal allowance?
No, but the first TZS 270,000 of monthly taxable pay is taxed at 0%.
Do employees pay the Skills and Development Levy?
No. It is a 3.5% cost of the employer, not a tax on the employee.
What about public-sector employees?
They belong to PSSSF, where the employer may recover up to 5% from the employee, rather than NSSF's 10%.
Official sources
- PwC Worldwide Tax Summaries (reviewed 09 September 2026): Tanzania – Individual – Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 09 September 2026): Tanzania – Individual – Other taxes. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 09 September 2026): Tanzania – Individual – Deductions. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 09 September 2026): Tanzania – Corporate – Other taxes. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 09 September 2026): Tanzania – Individual – Tax administration. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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