Tanzania applies income tax under the Income Tax Act, 2004 (Cap. 332), as amended, together with annual finance legislation. This guide retains the 2017-2018 rates for historical reference and explains the current legal framework for residents, non-residents and companies.
Important: The historical rates below must not be used as current PAYE tables. Tax bands and special regimes can change with annual Finance Acts. Verify the applicable year and jurisdiction with the Tanzania Revenue Authority (TRA) before calculating a present-day liability.
Tanzania personal income tax rates for 2017-2018
Individual employment income is generally subject to progressive taxation for residents. The original historical tables distinguish Mainland Tanzania and Zanzibar and show the rates effective from 1 July 2017. The percentages shown are marginal band rates, not a flat rate on all earnings.
Mainland Tanzania: resident individual monthly income
| Monthly Income (Tshs) | Tax Rate |
|---|---|
| Up to 170,000 | 0% |
| 170,001 to 360,000 | 9% |
| 360,001 to 540,000 | 20% |
| 540,001 to 720,000 | 25% |
| Over 720,000 | 30% |
For the original 2017-2018 table, monthly income up to TZS 170,000 was shown as untaxed, corresponding to TZS 2,040,000 annually. These figures are historical.
Zanzibar: resident individual monthly income
| Monthly Income (Tshs) | Tax Rate |
|---|---|
| Up to 180,000 | 0% |
| 180,001 to 360,000 | 9% |
| 360,001 to 540,000 | 20% |
| 540,001 to 720,000 | 25% |
| Over 720,000 | 30% |
For the original Zanzibar 2017-2018 table, monthly income up to TZS 180,000 was shown as untaxed, corresponding to TZS 2,160,000 annually. Zanzibar-specific administration and annual changes should be checked for the relevant period.
Income tax for non-residents in Tanzania
The original 2017-2018 page reported a 15% withholding tax for certain non-resident employees and a 20% rate on specified non-resident income. These are historical descriptions and should not be interpreted as universal rates for all non-residents.
Under the Income Tax Act, a person's residence status affects the scope of taxable income, while the character and source of a payment can determine whether withholding is final or creditable. Employment income, service fees, dividends, interest, royalties and gains can be governed by different rules. A tax treaty may also affect withholding where its conditions are satisfied.
Tanzania corporate income tax rates for 2017-2018
The following table preserves the rates and special categories stated in the original article. Preferential rates, qualifying conditions and turnover-based alternative minimum tax rules must be checked against the legislation applicable to the particular tax year.
| Particulars | Tax Rate |
|---|---|
| Resident Corporation | 30% |
| Non Resident Corporation with domestic permanent establishment | 30% |
| Newly listed companies - Reduced rates for 3 years | 25% |
| A corporation with newly established plant for assembling motor vehicles, tractors, fishing boat or out boat engine | 10% |
| Alternate Minimum tax on turnover | .3% |
For current periods, 30% remains the general reference corporate income tax rate for many companies, but exceptions and sector-specific provisions may apply. A permanent establishment is generally a sufficiently fixed business presence through which a non-resident conducts business, subject to the statute and any applicable treaty.
Capital gains tax in Tanzania
Capital gains are not governed by one universal rate. The Income Tax Act addresses gains on the realisation of investment and business assets, including certain land, buildings and shares. The amount subject to tax and the applicable collection mechanism depend on the asset, taxpayer status, exemptions and any relevant special provisions.
Realisation generally refers to an event such as a sale, transfer or other disposal that brings an asset gain or loss into account. Cost base refers broadly to the expenditure recognised under the law in measuring that gain or loss. For property transactions, obtain the latest TRA guidance before relying on any historic rate.
Current legal framework and official sources
Income Tax Act, 2004 (Cap. 332)
The principal legislation covers chargeable income, resident and non-resident taxation, business and investment income, deductions, asset realisations, withholding and tax administration. It is amended from time to time, including by Finance Acts.
Tax Administration Act, 2015
This legislation provides the framework for registration, returns, assessments, record keeping, collection, objections and related compliance procedures, as amended.
Annual Finance Acts and PAYE schedules
Budget measures may change tax bands, rates and exemptions from their effective dates. For the 2026 period, use the official published schedules rather than extrapolating from the 2017-2018 tables.
Official sources: Tanzania Revenue Authority; Ministry of Finance, Tanzania; Parliament of Tanzania. These portals provide access to current tax guidance, Finance Acts and legislative publications.
Frequently asked questions
Is the 2017-2018 Tanzania tax table still applicable?
No. The tables are retained to explain historical rates. The relevant tax year, current PAYE schedule and subsequent legislative amendments must be checked.
Does Zanzibar always have the same PAYE threshold as Mainland Tanzania?
No. The original tables show different historical thresholds. Verify the applicable Zanzibar and Mainland rules for the year concerned.
Is every capital gain taxable at the corporate income tax rate?
No. Tax treatment depends on the asset, taxpayer, nature of the gain and applicable statutory provisions.
Updated: 24 October 2026. This article is general information, not a substitute for advice on an individual tax position.