Tax rates 2026/27.
Every key rate in one place, updated for the Finance Act 2026. Valid for 2026/27 (Finance Act 2026, effective 1 July 2026).
Corporate income tax
| Corporate income tax (resident companies & permanent establishments) | 30% |
| Newly listed on the DSE (≥25% of shares to the public), first 3 years | 25% |
| Alternative minimum tax: perpetual unrelieved losses for 3 years | 1% of turnover |
| New vehicle, tractor & fishing-boat assemblers (first 5 years) | 10% |
| New pharmaceutical & leather manufacturers with a Government performance agreement (first 5 years) | 20% |
| Gains on disposal of Tanzanian investments | 30% |
| Deemed distribution of undistributed profits (Commissioner may deem) | 15% of profits (was 30%) |
PAYE: resident employees (monthly)
| Monthly taxable income (TSh) | Tax |
|---|---|
| 0 – 270,000 | Nil |
| 270,001 – 520,000 | 8% of excess over 270,000 |
| 520,001 – 760,000 | 20,000 + 20% of excess over 520,000 |
| 760,001 – 1,000,000 | 68,000 + 25% of excess over 760,000 |
| 1,000,001 – and above | 128,000 + 30% of excess over 1,000,000 |
Non-resident employees: 15% flat, final tax. Employee NSSF contributions are deducted before PAYE. Try the PAYE calculator →
Value Added Tax
| Standard VAT rate (Mainland) | 18% |
| VAT registration threshold | Taxable turnover above TSh 200 million a year |
| Professional service providers | Must register regardless of turnover |
| VAT return & payment | Monthly, by the 20th of the following month |
| Withholding VAT (by appointed agents) | 3% on goods · 6% on services |
| Withheld VAT remittance (from 1 July 2026) | Within 10 days after the month ends |
| Non-resident digital services | Digital service tax 3% of turnover; VAT on e-services to unregistered persons |
| Zanzibar (separate law) | 15% standard |
Payroll levies & other taxes
| Skills & Development Levy (SDL) | 3.5% of gross payroll (employers with 10+ employees) |
| NSSF social security | 20%: 10% employer + 10% employee |
| Workers Compensation Fund (WCF) | 0.5% of gross payroll |
| Non-resident employment income | 15% flat, final tax |
| Presumptive tax (resident individuals) | Turnover ceiling TSh 200m; 4% above TSh 11m |
| New small businesses (presumptive regime) | Possible 1-year tax holiday from TIN date (CG approval) |
| Stamp duty (conveyances, leases, share transfers) | Generally 1% |
| Agricultural land transfers (stamp duty) | 0.5% (new, Finance Act 2026) |
| Local service levy (councils) | Up to 0.25% of turnover |
| Railway Development Levy (imports) | 2% of CIF value |
Withholding tax rates
| Payment | Resident | Non-resident |
|---|---|---|
| Dividends: holding ≥25% (company shareholder) | 5% | 10% |
| Dividends: from a DSE-listed company | 5% | 5% |
| Dividends: other | 10% | 10% |
| Interest | 10% | 10% |
| Rent: land & buildings | 10% | 10% |
| Rent: motor vehicles, aircraft, construction equipment | 10% | 10% |
| Royalties | 15% | 15% |
| Service fees | 5% | 15% |
| Director fees (non-full-time) | 15% | 15% |
| Insurance premiums | 0% | 10% |
| Natural resource payments | 15% | 15% |
| Payments to digital content creators | 5% | — |
| Goods supplied to government institutions | 2% | — |
| Forest produce sold by residents (final tax, Finance Act 2026) | 2% | — |
WHT returns and payments are due by the 7th of the following month. Double tax treaties may reduce non-resident rates where conditions are met. Royalties for film, video and sound recordings: 10%.
Finance Act 2026: key changes.
Assented on 30 June 2026. Some measures need regulations or Ministerial notices before they fully apply.
Presumptive tax widened
Turnover ceiling doubled from TSh 100m to TSh 200m; rate for TSh 11m–200m set at 4%.
Tax holiday for new small businesses
A possible one-year nil-tax holiday from the TIN date for new businesses (TSh 4m–200m turnover), subject to approval.
Deemed dividends cut
The share of profits TRA may deem distributed falls from 30% to 15%.
Withholding VAT tightened
Agents must remit withheld VAT and file statements within 10 days after month end.
TIN within 15 days
Anyone starting employment, a business or investment must apply for a TIN within 15 days.
Contractor disclosure
Construction & extractive contracts: contractor/subcontractor details to TRA within 30 days of signing.
Transfer-pricing penalty
Now the greater of 30% of the adjustment or 100% of the tax shortfall.
Digital services
Payments to non-resident digital providers: 3% (up from 2%); marketplaces deemed suppliers for VAT.
Longer settlement window
Amicable settlement of tax appeals extended to 90 days (+30 days possible).
Also in the Act
- Excise on imported used vehicles: 18% (8–10 years), 35% (10–20 years), 40% (over 20 years).
- Specific excise rates up 8%, and adjusted annually from now on (inflation + 2%).
- Misusing tax exemptions: fine of 100% of the tax exempted; exemption revoked.
- Stamp duty changes: agricultural land transfers 0.5%; cheques, partnership deeds and bills of sale revised.
- Mandatory electronic payment proof for transfers of land, buildings and vehicles.
Sources & disclaimer
Compiled by Walker's Accounting from the Tanzania Revenue Authority, the Finance Act 2026 and professional summaries. Last checked: October 2026. Rates for Tanzania Mainland; Zanzibar has separate VAT and some other laws. This page is general information, not advice. Confirm your position before acting.
Tanzania Revenue Authority · PwC Worldwide Tax Summaries: Tanzania · EY: Finance Act 2026 analysis · Clyde & Co: Finance Act 2026 highlights