Methodology - Zambia (2026)

Educational model - not a ZRA assessment, not a tax return, not tax advice. Currency ZMW. Charge year 2026 (from 1 Jan 2026).

Employee (PAYE)

PAYE resident progressive MONTHLY scale: 0% up to 5,100; 20% to 7,100; 30% to 9,200; 37% above 9,200 (tax-free ZMW 61,200/year - the threshold was raised by the 2026 budget).
PAYE is charged on GROSS - Zambia has no personal allowances and the employee NAPSA/NHIMA are NOT deductible from the PAYE base. (Many local calculator sites deduct NAPSA first; per the Income Tax Act / ZRA that is incorrect.)
NAPSA pension: employee 5% + employer 5%, capped at the ZMW 37,236/month insurable-earnings ceiling (max each side 1,861.80). NHIMA health: employee 1% + employer 1% of gross, no ceiling.
Skills Development Levy (SDL): employer-only 0.5% of gross. Out of scope: the Base Tax for marketeers (ZMW 365/year) and the corporate Minimum Alternative Tax.

Turnover Tax for annual turnover up to ZMW 5,000,000: the first ZMW 30,000/year is at 0%, then 5% on turnover above 30,000 (on gross turnover; expenses are a cash outflow but do not reduce the tax).
Above ZMW 5,000,000 turnover: the standard regime applies - a sole trader's profits are taxed on the individual progressive scale (0/20/30/37%). NAPSA/NHIMA for the self-employed are voluntary and excluded.