Methodology - Tanzania (mainland, 2025/2026)

Educational model - not a TRA assessment, not a tax return, not tax advice. Currency TZS. Mainland only (Zanzibar/ZRA differs).

Employee (PAYE)

PAYE is progressive on the resident MONTHLY scale (Income Tax Act Cap 332, First Schedule): 0% up to 270,000; 8% to 520,000; 20% to 760,000; 25% to 1,000,000; 30% above 1,000,000. The first taxable rate is 8% (not the pre-2021 9%).
The only deduction from employment income is the employee statutory social security contribution: NSSF 10% of gross (no ceiling). The PAYE taxable base = gross MINUS the employee NSSF.
Employer cost: NSSF 10% + SDL 3.5% (Skills Development Levy, employers with 10+ employees) + WCF 0.5% (Workers Compensation Fund, private sector). The employer-cost view assumes a 10+ employee formal employer.
Out of scope: the NHIF/UHI 6% contribution (Universal Health Insurance Act 2023; rollout commenced 26 Jan 2026 at an intended 6% employer/employee split, but private-sector payroll-withholding mechanics are still being operationalised - kept off by default), the non-resident flat 15%, secondary-employment flat 30%, and the PSSSF public-sector fund. Tanzania's tax year runs 1 Jul - 30 Jun; the 2025/2026 bands are in force throughout 2026.

Standard regime: the resident individual progressive scale (annual 0/8/20/25/30%, tax-free up to TZS 3,240,000/year) applies to net business profit (revenue minus deductible expenses).
Out of scope (documented alternative): the presumptive regime for resident individuals with exclusively business income, turnover up to TZS 100,000,000/year, not VAT-registered, electing in (excludes professionals). With records: 3% / 90,000 + 3% / 3.5% of turnover by band. NSSF for the self-employed is voluntary.