Denilagari

PAYE Tax Calculator In Tanzania For 2025/2026

Our PAYE calculator tool helps you easily calculate PAYE in Tanzania with accurate TRA PAYE calculator rates. Estimate your tax in seconds, whether you're checking PAYE rates in Tanzania or looking for a PAYE calculator monthly update. Ideal for anyone needing a PAYE calculator for Tanzania or simply learning how to calculate PAYE in Tanzania. From PAYE tax breakdowns to personalized figures, the calculator gives you everything you need.

TSh
Gross Income
TSh 600,000
Take-home Pay
TSh 564,000
PAYE Tax
TSh 36,000
Effective Rate: 6.0%
Marginal Rate: 20%

Understanding PAYE in Tanzania

Pay As You Earn (PAYE) is a system of income tax collection in Tanzania where employers deduct tax from employees' salaries before paying them. This ensures continuous tax collection throughout the year.

PAYE applies to employment income including salaries, wages, bonuses, overtime pay, and other benefits. The tax is calculated based on progressive tax brackets, meaning higher earners pay higher rates.

All employers in Tanzania are required to register for PAYE and deduct tax from their employees' salaries before remitting it to the Tanzania Revenue Authority (TRA).

Tanzania uses a progressive tax system with the following monthly brackets for Tanzania Mainland:

TSh 0 - 270,0000% (NIL)
TSh 270,001 - 520,0008% of excess above TSh 270,000
TSh 520,001 - 760,000TSh 20,000 + 20% of excess above TSh 520,000
TSh 760,001 - 1,000,000TSh 68,000 + 25% of excess above TSh 760,000
Above TSh 1,000,000TSh 128,000 + 30% of excess above TSh 1,000,000

Note: Annual income threshold of TSh 3,240,000 is not taxable (equivalent to TSh 270,000 monthly).

Individual traders who are not under presumptive tax regime must comply with specific requirements:

  • Keep proper records of all business transactions
  • File provisional returns on or before 31st March
  • Pay tax based on taxable income for the year
  • File final returns with audited financial statements by 30th June
  • Submit returns to TRA within the specified deadlines

These individuals pay tax using the same progressive rates as PAYE employees, calculated on their annual taxable income.

Important: Under the presumptive system, individuals are not obliged to file returns but can pay by installments if the assessed amount exceeds TSh 50,000 per year.

Provisional Returns (Form ITX200.01.E)

Estimated tax must be filed within 3 months of the year beginning, with payments in 4 installments:

1st Payment:On or before 31st March
2nd Payment:On or before 30th June
3rd Payment:On or before 30th September
4th Payment:On or before 31st December

Final Returns (Form ITX201.01.E)

Must be filed within 6 months after the tax year ends (between 1st January and 30th June).

The Commissioner may extend filing deadlines upon written application with appropriate terms and conditions.

The Income Tax Act requires every individual liable for tax to maintain comprehensive documentation:

  • All documents necessary for accurate tax determination
  • Records must be retained for at least 5 years from the end of the relevant tax year
  • Documents not in official languages must be translated by TRA-approved translators
  • Business and investment financial information
  • Supporting calculations and supplementary documentation

Tip: Keep copies of all completed returns and supporting documents for your own records.

Return Form Components

The return form consists of seven pages plus supplementary pages for:

  • Gains from realization of shares and securities
  • Gains from realization of assets (excluding shares, securities, or trading stock)
  • Repatriated income of domestic permanent establishment
  • Income from general insurance business
  • Income from life insurance business
  • Income from mining operations

Submission Guidelines

  • Round down revenue figures, round up tax credits and deductions to nearest shilling
  • Don't delay submission even if some information is missing - estimate and indicate
  • Sign and date the declaration before submission
  • Include all supporting calculations, supplementary pages, and audited accounts
  • You are responsible for filing a correct return - penalties apply for false information

Important: Contact your nearest TRA Office or Call Centre if you need assistance completing your return or require supplementary pages.

Before calculating PAYE tax, certain deductions are made from gross income:

  • NSSF Contributions: National Social Security Fund contributions (worker's portion)
  • PSSSF Contributions: Public Service Social Security Fund (for public servants)
  • LAPF Contributions: Local Authorities Provident Fund (for local government employees)
  • Other approved pension schemes

The standard NSSF contribution rate is 10% of basic salary (5% employee + 5% employer), with a maximum monthly contribution ceiling.

PAYE tax is then calculated on the income remaining after these deductions.

Employers in Tanzania have several PAYE-related responsibilities:

  • Register for PAYE with Tanzania Revenue Authority (TRA)
  • Deduct correct amount of PAYE tax from employee salaries
  • Remit PAYE tax to TRA by the 15th of the following month
  • Submit monthly PAYE returns
  • Issue P9A forms (tax deduction cards) to employees
  • Submit annual returns and reconciliation

Penalties: Late payment or non-compliance attracts penalties and interest charges from TRA.

Employers must keep proper records of all PAYE transactions for audit purposes.

Note that PAYE is calculated after deducting NSSF or PSSSF contributions from your gross income.

Monthly Income
After Tax
Tax Rate
TSh 270,000
TSh 270,000
0.0%
TSh 275,000
TSh 274,600
0.1%
TSh 280,000
TSh 279,200
0.3%
TSh 285,000
TSh 283,800
0.4%
TSh 290,000
TSh 288,400
0.6%
TSh 295,000
TSh 293,000
0.7%
TSh 300,000
TSh 297,600
0.8%
TSh 305,000
TSh 302,200
0.9%
TSh 310,000
TSh 306,800
1.0%
TSh 315,000
TSh 311,400
1.1%
TSh 320,000
TSh 316,000
1.3%
TSh 325,000
TSh 320,600
1.4%
TSh 330,000
TSh 325,200
1.5%
TSh 335,000
TSh 329,800
1.6%
TSh 340,000
TSh 334,400
1.6%
TSh 345,000
TSh 339,000
1.7%
TSh 350,000
TSh 343,600
1.8%
TSh 355,000
TSh 348,200
1.9%
TSh 360,000
TSh 352,800
2.0%
TSh 365,000
TSh 357,400
2.1%
TSh 370,000
TSh 362,000
2.2%
TSh 375,000
TSh 366,600
2.2%
TSh 380,000
TSh 371,200
2.3%
TSh 385,000
TSh 375,800
2.4%
TSh 390,000
TSh 380,400
2.5%
TSh 395,000
TSh 385,000
2.5%
TSh 400,000
TSh 389,600
2.6%
TSh 405,000
TSh 394,200
2.7%
TSh 410,000
TSh 398,800
2.7%
TSh 415,000
TSh 403,400
2.8%
TSh 420,000
TSh 408,000
2.9%
TSh 425,000
TSh 412,600
2.9%
TSh 430,000
TSh 417,200
3.0%
TSh 435,000
TSh 421,800
3.0%
TSh 440,000
TSh 426,400
3.1%
TSh 445,000
TSh 431,000
3.1%
TSh 450,000
TSh 435,600
3.2%
TSh 455,000
TSh 440,200
3.3%
TSh 460,000
TSh 444,800
3.3%
TSh 465,000
TSh 449,400
3.4%
TSh 470,000
TSh 454,000
3.4%
TSh 475,000
TSh 458,600
3.5%
TSh 480,000
TSh 463,200
3.5%
TSh 485,000
TSh 467,800
3.5%
TSh 490,000
TSh 472,400
3.6%
TSh 495,000
TSh 477,000
3.6%
TSh 500,000
TSh 481,600
3.7%
TSh 505,000
TSh 486,200
3.7%
TSh 510,000
TSh 490,800
3.8%
TSh 515,000
TSh 495,400
3.8%