Zimbabwe Income Tax Rates 2026: PAYE, Corporate Tax and Capital Gains
A practical guide to Zimbabwe personal income tax, payroll withholding, corporate income tax and capital gains, with the original 2018 tax rates preserved for historical reference.
1. Personal Income Tax and PAYE in Zimbabwe
Pay As You Earn (PAYE) is income tax withheld by an employer from an employee's taxable remuneration. Taxable pay can include salary, wages, allowances and certain benefits, less applicable exemptions and allowable deductions. The progressive marginal rate is applied to each band, not to the employee's entire salary.
For 2026, the maximum PAYE marginal rate is commonly reported as 40%, while the correct thresholds depend on the payment currency and applicable official tax tables. ZIMRA's published guidance confirms that employers should use USD tables for mixed-currency remuneration, applying the prescribed conversion and apportionment rules. The 3% AIDS levy is added to the income tax calculated after applicable credits; it is not a flat 3% tax on gross salary.
Illustrative USD monthly PAYE bands reported for 2026
| Monthly taxable pay (USD) | Marginal rate |
|---|---|
| 0 to 100 | 0% |
| Above 100 to 300 | 20% |
| Above 300 to 1,000 | 25% |
| Above 1,000 to 2,000 | 30% |
| Above 2,000 to 3,000 | 35% |
| Above 3,000 | 40% |
Indicative bands from payroll-provider material; they are not a substitute for an enacted 2026 ZIMRA table. Published third-party 2026 band figures are inconsistent. Always check the applicable official schedule before calculating tax.
Employers generally submit PAYE returns and remit withholding by the 10th day of the following month. Consult ZIMRA's PAYE guidance and TaRMS self-service.
2. Zimbabwe Corporate Income Tax Rates
Under the Income Tax Act [Chapter 23:06], company taxable income is charged at rates prescribed by the Finance Act [Chapter 23:04]. ZIMRA's published corporate tax-rate schedule identifies a standard 25% rate for companies and trusts, with an additional AIDS levy of 3% of the income tax liability. The combined amount is therefore ordinarily equivalent to 25.75% of taxable profits where the full 25% rate applies.
| Taxpayer or activity | Published base rate |
|---|---|
| Ordinary companies and trusts | 25% |
| Mining operations (ordinary) | 25% |
| Special mining lease holder | 15% |
| Qualifying manufacturing exporter (output conditions apply) | 20%, 17.5% or 15% |
| Qualifying licensed investor, first five years | 0% subject to eligibility |
Preferential rates depend on statutory qualification, licensing and current Finance Act amendments. The tax authority's corporate rate schedule should be checked alongside the 2026 Budget and fiscal review. A budget proposal does not itself replace enacted law.
3. Capital Gains Tax in Zimbabwe
The Capital Gains Tax Act [Chapter 23:01] governs tax on disposals of specified assets, including certain immovable property and marketable securities. A capital gain generally refers to the taxable amount arising from a disposal after permitted costs and deductions, while a gross proceeds basis taxes the sale consideration rather than the net gain.
| Specified asset acquisition period | Common statutory treatment |
|---|---|
| Acquired on or after 1 February 2009 | Generally 20% of taxable capital gain, subject to exemptions and current law |
| Acquired before 1 February 2009 | Generally 5% of gross sale proceeds, subject to applicable exceptions |
Reliefs and exclusions may apply to qualifying principal private residences, rollovers, certain securities or other statutory situations. Determine the asset's acquisition date, sale date, consideration, allowable expenditure and any exemption before applying a rate. Consult ZIMRA for current procedures and payment obligations.
4. Residents, Nonresidents and Source of Income
Tax residence, the source of income, the existence of a permanent establishment or local business activity, and any applicable double-taxation agreement can affect a nonresident's liability. Employment income earned in Zimbabwe, local business profits and certain investment payments may be taxed under different charging and withholding provisions. A single universal nonresident income tax rate does not apply.
For cross-border transactions, review the relevant definitions and charging provisions in the Income Tax Act, withholding tax rules, and any applicable tax treaty before calculating liability.
5. Historical Zimbabwe Income Tax Rates for 2018
The following figures reproduce the important historical rates from the original article. They are presented for comparison and historical research, not for 2026 tax calculations.
Personal income tax, 2018 (annual taxable income)
| Annual taxable income ($) | 2018 rate |
|---|---|
| 0 to 3,600 | 0% |
| 3,601 to 18,000 | 20% |
| 18,001 to 36,000 | 25% |
| 36,001 to 60,000 | 30% |
| 60,001 to 120,000 | 35% |
| 120,001 to 180,000 | 40% |
| 180,001 to 240,000 | 45% |
| Above 240,000 | 50% |
Capital gains, 2018
| Historical asset category | 2018 treatment |
|---|---|
| Specified assets acquired on or after 1 February 2009 | 20% of capital gain |
| Specified assets acquired before 1 February 2009 | 5% of gross proceeds |
Corporate income tax, 2018
| Historical category | 2018 base rate / levy |
|---|---|
| Ordinary companies, including branches | 25% |
| AIDS levy on income tax | 3% |
| Special mining lease | 15% |
| Qualifying manufacturing exporters | 15% |
| Bookmakers (historical category) | 5% |
6. Applicable Tax Legislation and Official Sources
- Income Tax Act [Chapter 23:06]: establishes the charge to income tax, income concepts, deductions and assessment framework.
- Finance Act [Chapter 23:04] and subsequent amendments: prescribes rates, thresholds, levies and special categories.
- Capital Gains Tax Act [Chapter 23:01]: governs taxable disposals, computation and reliefs for specified assets.
- ZIMRA tax tables: official PAYE schedules by currency and period.
- ZIMRA corporate tax rates: published sectoral rates and AIDS levy.
- Zimbabwe Ministry of Finance 2026 budget documents: fiscal changes and reviews.
Tax guidance is general information and does not replace legislation, tax authority directions or professional advice. Last editorial review: 24 October 2026.