A Tanzania Mainland payroll has one employee tax, PAYE, plus NSSF shared with the employee and two levies the employer pays alone: SDL and WCF. This guide doesn’t cover Zanzibar, which has its own revenue authority and social security fund.
PAYE bands
Taxable pay is gross pay and taxable benefits less the employee’s NSSF contribution.
| Taxable pay (TZS a month) | Rate |
|---|---|
| Up to 270,000 | 0% |
| 270,001 to 520,000 | 8% |
| 520,001 to 760,000 | 20% |
| 760,001 to 1,000,000 | 25% |
| Above 1,000,000 | 30% |
There’s no separate personal relief, because the 0% band plays that role.
What the employer pays
| Contribution | Rate | Base |
|---|---|---|
| NSSF, employer share | 10% by default | Gross |
| Skills and Development Levy | 3.5% | Gross, for employers with 10 or more employees |
| Workers Compensation Fund | 0.5% | Basic plus fixed allowances, excluding overtime and bonuses |
Headcount for SDL includes casual and part-time staff. Some employers, such as government bodies and registered schools, are exempt.
Worked example: TZS 800,000
| Item | TZS |
|---|---|
| Gross pay | 800,000 |
| NSSF, employee 10% | 80,000 |
| Taxable pay | 720,000 |
| PAYE | 60,000 |
| Net pay | 660,000 |
| NSSF, employer 10% | 80,000 |
| SDL 3.5% | 28,000 |
| WCF 0.5% | 4,000 |
HESLB beneficiaries also repay 15% of basic salary from net pay.
Deadlines
- PAYE and SDL: the 7th of the following month, paid by control number.
- NSSF and WCF: the end of the following month.
- Half-year PAYE and SDL certificate: within 30 days after 30 June and 31 December.
Try your own figures in the PAYE calculator.