Tanzania

Individual - Taxes on personal income

Last reviewed - 18 January 2021

Income tax is payable by individuals resident in Tanzania (other than short-term residents) on their worldwide income. ‘Short-term residents’ and non-residents are taxable on income from a Tanzanian source.

Personal services have a Tanzanian source if (i) performed in Tanzania or (ii) performed outside Tanzania but where the payer is the government of Tanzania.

Personal income tax rates

The top marginal rate of tax for resident individuals is 30%. The tax table is out below.

Non-resident individuals are subject to tax at a flat rate of 15% on employment income, which is final tax in Tanzania.

For individuals with business turnover not exceeding TZS 100 million per annum, specific presumptive income tax rates apply, as set out in the table in the Business income section

Where the income from investment represents a ‘final withholding payment’, the tax rate applicable is the relevant withholding tax (WHT) rate. The disposal of an investment with a Tanzanian source is subject to tax at a rate of 10% if disposed by a resident and 30% if disposed by a non-resident. The disposal by a resident of an investment with an overseas source is subject to tax at a rate of 30%.

Resident rates 

Taxable income (TZS) Tax on column 1 (TZS) Tax on excess (%)
Over (column 1) Not over
0 270,000 - 0
270,001 520,000 - 8
520,001 760,000 20,000 20
760,001 1,000,000 68,000 25
1,000,001 And above 128,000 30