Tax Rates

PAYE, NSSF, SDL and WCF rates for 2021.

PAYE

PAYE rates in effect as from 1st July 2021:

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 8
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 2021:

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

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 ten 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

All employers in mainland Tanzania are required to contribute to the Workers Compensation Fund (WCF). As from 1 July 2021, private sector employers contribute 0.6% of total employee earnings while public sector employers contribute 0.5%.