DoubleTaxationTaxes on salary: Tanzania preliminary data
How much income tax and social contributions are paid on a salary in Tanzania, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | TZS 172,309,263 ≈ €60,000 |
|---|---|
| Income tax | TZS 44,459,501 ≈ €15,481 |
| Employee contributions | TZS 17,230,926 ≈ €6,000 |
| Take-home pay | TZS 110,618,836 ≈ €38,519 |
| Employer contributions and payroll taxes | TZS 24,295,606 ≈ €8,460 |
| Employer's labour cost | TZS 196,604,869 ≈ €68,460 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 TZS 86,154,631 | €60,000 TZS 172,309,263 | €120,000 TZS 344,618,526 |
|---|---|---|---|
| Sole proprietor | TZS 26,625,492 34.3 % | TZS 55,314,985 35.7 % | TZS 112,693,969 36.3 % |
| Company | TZS 28,689,492 37.0 % | TZS 57,378,985 37.0 % | TZS 114,757,969 37.0 % |
| Sole proprietor · Presumptive income tax for small businesses — turnover TZS 11m–200m | TZS 3,446,185 4.4 % | TZS 6,892,371 4.4 % | above the regime's limit |
| Sole proprietor · Presumptive income tax for small businesses — turnover TZS 4m–11m, with records | above the regime's limit | above the regime's limit | above the regime's limit |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Tanzania yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 2871.821049 TZS (Bank of Tanzania — previous exchange rates, USD mean rate for 2 Jan 2026 (buying 2437.9604 / selling 2462.34), 2026-01-02) ↗
Sources
- Tanzania Revenue Authority — Income tax for individuals (PAYE bands, presumptive tax)
- Tanzania Revenue Authority — Taxes and Duties at a Glance 2023/2024 (corporation tax, dividend withholding, SDL)
- US SSA — Social Security Programs Throughout the World: Africa, 2019 — Tanzania (NSSF/PSSSF/WCF)
- Embassy of Tanzania in Israel (news repost) — WCF private-sector rate cut from 1% to 0.6% (July 2021)
- Bank of Tanzania — previous exchange rates
- Ministry of Finance (Tanzania) — The Income Tax Act, Cap. 332 R.E. 2019 (s.61 retirement contributions)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.