Tanzania Tax Rates 2026: Income Tax, Corporate Tax, VAT and Withholding Tax

Tanzania Individual Income Tax Rates (PAYE) - 2026

Resident individuals are taxed on a progressive monthly schedule. The following table shows the commonly applied resident PAYE bands.

Non-resident employment income is generally subject to a separate flat-rate treatment, and investment income may be taxed under final withholding-tax rules. Residence, source and the nature of the payment therefore matter.

Corporate Income Tax Rate in Tanzania

The standard corporate income tax rate is 30% for a resident corporation and for a permanent establishment of a non-resident corporation, subject to special rules and sector-specific regimes.

A qualifying company newly listed on the Dar es Salaam Stock Exchange may apply a reduced 25% corporate income tax rate for three consecutive years where the statutory public-shareholding conditions are met. Other preferential rates may apply to specifically qualifying activities or investments.

2026 presumptive-tax change

The Finance Act, 2026 increased the turnover ceiling of the presumptive income-tax regime for eligible individuals from TZS 100 million to TZS 200 million. Taxpayers within the relevant turnover range may also be affected by the revised presumptive-tax rules and record-keeping options introduced for 2026/27.

Withholding Tax Rates in Tanzania

Withholding tax depends on the nature of the payment and whether the recipient is resident or non-resident. Treaty relief may reduce a domestic rate where an applicable double-tax agreement provides a lower rate.

The Finance Act, 2026 also increased the income-tax rate on payments to non-resident digital-service providers from 2% to 3% and introduced a 1% single-instalment tax mechanism for specified agricultural produce.

Capital Gains and Disposal of Investments

Tanzania generally taxes gains from the disposal of investment assets through the income-tax system rather than through a separate universal capital-gains tax. For corporations, taxable gains on investments with a Tanzanian source are generally included in taxable income and subject to the 30% corporate income-tax rate.

For individuals, a disposal of a Tanzanian-source investment is generally subject to tax at 10% for a resident individual and 30% for a non-resident individual, subject to exemptions, source rules and any applicable special provisions.

Value Added Tax (VAT) in Tanzania

The standard VAT rate in Mainland Tanzania is 18%. Zero-rating and exemptions apply to specified supplies under the Value Added Tax Act and subsequent Finance Acts.

A reduced 16% VAT rate applies to qualifying business-to-consumer supplies of goods where the statutory electronic-payment and invoice-confirmation conditions are satisfied. Businesses should verify eligibility and invoicing requirements before applying the reduced rate.

The Finance Act, 2026 further amended the VAT withholding framework, including rates and compliance rules for designated withholding agents, and expanded aspects of VAT administration for electronic services supplied through digital platforms.

Other Taxes, Levies and Duties

Stamp duty

Stamp duty applies to specified instruments. Ad valorem rates commonly include 1% for certain instruments such as leases and conveyances, subject to the precise statutory category, exemptions and special 2026 amendments.

Service levy

Local government service levy rules have been revised in recent Finance Acts. Businesses should apply the rate and tax base prescribed for the relevant local authority and period rather than relying on the older "up to 0.3%" wording previously shown on this page.

Customs duty

Customs duties are principally governed through the East African Community customs framework and the applicable Common External Tariff. Rates vary according to tariff classification, origin, exemptions, remissions and current EAC measures; a single generic 0%-25% range is no longer an adequate description for all imports.

Skills and Development Levy and excise duties

Employer payroll levies and excise duties apply under separate legislation and can change through annual Finance Acts. Excise rates vary significantly by product or service, so current statutory schedules should be checked for the particular transaction.

Tax Year, Returns and Payment

For most individual taxpayers, the year of income is the calendar year ending 31 December. Companies may in qualifying circumstances use an approved accounting period. Filing and payment deadlines depend on taxpayer type, instalment obligations, withholding requirements, VAT periods and any extension or special rule applicable to the taxpayer.

Because tax administration is increasingly electronic, taxpayers should use the Tanzania Revenue Authority's current filing and payment systems and confirm deadlines for the relevant tax type before filing.

Official Tanzania Tax-Law Resources

• Office of the Attorney General - Finance Act, 2026
• Parliament of Tanzania - Acts
• Ministry of Finance - Tax Acts
• Ministry of Finance Repository - Income Tax Act, Cap. 332
• Tanzania Revenue Authority

This page is a general tax-rate summary. The governing Acts, regulations, notices, tax treaties and Tanzania Revenue Authority guidance should be checked for a particular transaction or filing position.