Tanzania (TZ)

East African expat base with Swahili-English daily life, Indian Ocean access, major safari and NGO sectors, growing mining and energy work, and relatively low local costs offset by permit, insurance, school, and hard-currency housing expenses.

Capital: Dodoma

Region: Africa

Language: Swahili

Currency: TZS (TSh)

Cost of living: Very affordable (index 27)

Emergency: 112

Tax & Payslip Guide

Understanding your taxes in Tanzania — tax year 1 July – 30 June (Tanzania fiscal year 2025/26 and 2026/27). Individuals use this cycle; companies may have TRA-approved accounting periods..

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Tax Year

1 July – 30 June (Tanzania fiscal year 2025/26 and 2026/27). Individuals use this cycle; companies may have TRA-approved accounting periods.

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Filing Deadline

Individual annual returns due 30 June 2026 (covering FY 2025/26) and 30 June 2027 (FY 2026/27) where filing is required. PAYE remitted monthly by employers by the 7th of the following month.

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VAT (Standard)

18%

📊 Income Tax Brackets

Income from	Income to	Rate	Notes
0	270,000	0%	Monthly taxable employment income up to TSh 270,000.
270,001	520,000	8%	Resident PAYE band on monthly taxable income above TSh 270,000 up to TSh 520,000.
520,001	760,000	20%	Resident PAYE band with fixed tax plus 20% on excess.
760,001	1,000,000	25%	Resident PAYE band with fixed tax plus 25% on excess.
1,000,001	∞	30%	Top resident PAYE band. Non-resident employment income is generally taxed at a flat 15% final rate.

🏛️ Social Contributions

NSSF private-sector social security

Employee: Up to 10% recoverable from employee

Employer: 20% total remitted by employer, with employer able to recover up to half from employee

Mandatory for private-sector employees including foreigners employed in mainland Tanzania.

PSSSF public-sector pension

Employee: Usually up to 5% recoverable depending arrangement

Employer: 20% total public-sector scheme contribution

Applies in public sector rather than most private expat employment.

Skills and Development Levy

Employee: 0%

Employer: 3.5% of gross cash emoluments for employers with at least 10 employees

Employer payroll cost; relevant when comparing gross salary offers or running a company.

Workers Compensation Fund

Employee: 0%

Employer: Employer contribution; rate depends on sector/current WCF rules

Employer-side workplace injury coverage; confirm current WCF rate with payroll adviser.

🛒 VAT Rates

18%

Standard

0% for exports and selected zero-rated supplies

Reduced

Exempt treatment applies to selected financial, education, health, and basic supplies depending law

Super reduced

VAT registration and filing rules should be checked with TRA; Zanzibar can have separate administration for some taxes.

🧾 Sample Payslip Decoder

Gross Salary TSh 5,000,000/month

Gross salary + TSh 5,000,000

NSSF Employee Contribution (10%) - -TSh 500,000

PAYE Income Tax (TRA progressive rates) - -TSh 1,104,500

Net Salary (Take-home) TSh 3,395,500/month

Illustrative 2026 example. NSSF employee 10% = TSh 500,000; employer also contributes 10% (TSh 500,000) — not deducted from employee. PAYE is calculated on gross salary using TRA progressive monthly bands; the TSh 1,104,500 estimate is approximate and actual PAYE depends on current TRA tables, allowances, and residency status. Employer additionally pays SDL (Skills Development Levy) at 4% of gross salary (TSh 200,000/month) and WCF (Workers Compensation Fund) premiums — neither is deducted from the employee. TZS and TSh are both used interchangeably for the Tanzanian shilling.

🌍 Special Expat Tax Rules

No general expat tax holiday. Residence status, Tanzania-source income, employer payroll, and permit status drive exposure. Short-term residents and non-residents are treated differently from resident individuals.

📋 Double Tax Treaties

Tanzania has a limited treaty network. Check treaty availability before accepting remote income, board fees, pensions, or investment income while resident.

Tanzania Revenue Authority (TRA)

https://www.tra.go.tz

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