How Income Tax Works in Tanzania
Tanzania taxes employment income through PAYE (Pay As You Earn), withheld monthly by your employer. The key thing to know: your 10% NSSF pension contribution comes off first, and PAYE is calculated on what remains.
The 2026 PAYE bands (monthly)
| Monthly taxable income (TZS) | Rate |
|---|---|
| 0 – 270,000 | 0% |
| 270,001 – 520,000 | 8% |
| 520,001 – 760,000 | 20% |
| 760,001 – 1,000,000 | 25% |
| Above 1,000,000 | 30% |
Worked example
Monthly salary of TSh 1,500,000: NSSF = 10% × 1,500,000 = TSh 150,000. Taxable = 1,350,000. PAYE = 128,000 + 30% × (1,350,000 − 1,000,000) = TSh 233,000. Take-home = 1,500,000 − 150,000 − 233,000 = TSh 1,117,000.
NSSF — the pension deduction
Employees pay 10% of gross monthly wage to the National Social Security Fund (employer adds another 10%). There is no salary ceiling. WCF (0.5%) and SDL (3.5%) are employer-only levies you never see on your payslip.
Try it: Tanzania salary calculator →
Sources: Tanzania Revenue Authority (tra.go.tz), NSSF (nssf.go.tz). Estimate only — not tax advice.