United Republic of Tanzania — PAYE, VAT, NSSF/NHIF, Excise Duty 2026
💰 PAYE Calculator (Pay As You Earn)
Calculate annual personal income tax under Tanzania's progressive PAYE system (Income Tax Act, 2004 as amended). Top marginal rate: 30%. Tax-free threshold: TSh 3,240,000/year. All amounts in Tanzanian Shillings (TZS).
TSh
TSh
📌 Deductions & Reliefs:
NSSF/PSSSF employee contributions (10%) and NHIF (3%) are tax-deductible. Mortgage interest on owner-occupied housing is deductible. Donations to approved institutions are deductible. Personal relief of TSh 3,240,000/year (TSh 270,000/month) is automatically applied. Tax year: 1 Jul – 30 Jun. Returns due by 30 September of the following year.
📊 TRA PAYE Tax Brackets 2026
Progressive personal income tax rates for individuals resident in Tanzania, per the Income Tax Act, 2004 as amended by the Tanzania Revenue Authority (TRA).
Lower Limit (TZS)
Upper Limit (TZS)
Fixed (TZS)
Rate %
0
3,240,000
0
0%
3,240,001
6,240,000
0
8%
6,240,001
9,120,000
240,000
10%
9,120,001
10,000,000
528,000
15%
10,000,001
12,000,000
660,000
20%
12,000,001
14,000,000
1,060,000
25%
14,000,001
Above
1,560,000
30%
📌 Formula:
Tax = Fixed Amount + Rate × (Chargeable Income − Lower Limit). The first TSh 3,240,000 of annual income is exempt from tax.
🏢 NSSF / NHIF Contribution Rates
Item
Employee
Employer
NSSF/PSSSF Pension
10%
10%
NHIF Health Insurance
3%
10%
Total
13%
20%
📌 Note:
NSSF (National Social Security Fund) / PSSSF (Public Service Social Security Fund) covers retirement pensions. NHIF (National Health Insurance Fund) provides health insurance. Both employee (13%) and employer (20%) contributions are tax-deductible for PAYE purposes.
🧾 VAT Calculator (Value Added Tax)
Standard rate: 18% (VAT Act, 2014). Zero-rated: exports, certain basic foodstuffs (maize, rice, cassava). Exempt: financial services, medical services, education, residential rent, public transport.
TSh
📌 Zero-Rated Items:
Exports of goods and services, maize, rice, cassava, wheat flour, milk, cooking oil (unprocessed), agricultural inputs, and certain basic foodstuffs. Exempt supplies include financial services, medical services, educational services, residential rent, and public transportation.
Calculate mandatory social security and health insurance contributions under NSSF/PSSSF and NHIF. Covers retirement pension, invalidity benefit, survivor benefit, and health insurance.
TSh
📌 NSSF/NHIF Benefits:
NSSF/PSSSF provides: retirement pension (after minimum 10 years of contributions, at age 55), invalidity benefit, survivor's benefit (widow/widower and dependent children), and funeral grant. NHIF provides: outpatient and inpatient health coverage, maternity benefits, and coverage for dependants (spouse + up to 4 children). Both employee (13%) and employer (20%) contributions are tax-deductible for PAYE purposes.
🍺 Excise Duty Calculator
Tanzania excise duties under the Excise (Management and Tariff) Act, 2005. Levied on alcoholic beverages, tobacco, petroleum products, motor vehicles, and sugar-sweetened beverages.
TSh
TSh
%
📌 Excise Duty in Tanzania:
Excise duty is governed by the Excise (Management and Tariff) Act, 2005 and administered by the TRA. Motor vehicle excise rates vary by engine capacity (10–50% of CIF value). Tobacco products attract both specific (per stick) and ad valorem (50%) excise. Petroleum products are subject to specific levies including the Road Fund and Petroleum Supply Levy. Sugar-sweetened beverages attract 10% ad valorem excise. VAT at 18% is applied on top of the excise-inclusive price.