Lesotho Salary Calculator 2026 - PAYE
Free Lesotho salary calculator (2026/27): estimate take-home pay for employees and the self-employed. PAYE 20% to M77,760 then 30%, less the M12,240 personal tax credit. No mandatory employee social security. Educational, not tax advice.
by Simon Bodych
Methodology & sources
Methodology - Lesotho (2026/27)
Educational model - not a Revenue Services Lesotho assessment, not a tax return, not tax advice. Currency LSL (loti, M; pegged 1:1 to the rand). Tax year 1 Apr 2026 - 31 Mar 2027.
Employee (PAYE)
- Two-rate PAYE: 20% on chargeable income up to M77,760/year (M6,480/month), 30% above. There is no 0% band.
- A non-refundable personal tax credit of M12,240/year (M1,020/month) is subtracted from the computed tax, floored at zero. This produces the effective tax-free point at roughly M61,200/year.
- Lesotho has no mandatory national social-security or pension contribution for private-sector employees, so net = gross - PAYE.
- Out of scope: the optional deduction for approved-fund pension contributions (capped at 20% of income) and fringe-benefits tax (an employer cost).
Sources: Revenue Services Lesotho (RSL), PwC - Lesotho individual taxes.
Self-employed (sole trader)
- Sole traders are taxed as individuals on net business income (receipts less allowable expenses) at the same 20%/30% rates with the same M12,240 personal tax credit. There is no minimum or turnover tax.
- Out of scope: the 10% concessional rate for manufacturing / commercial farming, and the company route (25% corporate rate).