Tax Rates

PAYE, NSSF, SDL and WCF rates for 2021.

PAYE

PAYE rates in effect as from 1st July 2020:

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

PAYE rates in effect up to 30th June 2020:

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 9
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

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 four or more employees. It is collected by the Tanzania Revenue Authority. As from 1 July 2020, the amount payable is 4% of the total emoluments paid to all employees.

WCF

As from 1 July 2015 all employers in mainland Tanzania are required to contribute to the Workers Compensation Fund (WCF). Private sector employers contribute 1% of total employee earnings and public sector employers contribute 0.5%.