Tanzania Tax Rates
Tanzania operates a progressive personal income tax system with rates up to 30%. The Tanzania Revenue Authority (TRA) administers the tax system, featuring a 30% corporate tax rate, 18% VAT, and capital gains tax. Tanzania's economy is driven by mining, tourism, and agriculture, with special incentives offered through Special Economic Zones and Export Processing Zones.
Top Income Tax Rate
30%
Corporate Tax Rate
30%
VAT / Sales Tax
18%
Capital Gains Tax
10%
Detailed Tax Information
Income Tax Brackets
Tanzania levies progressive personal income tax on residents' worldwide income. Annual rates range from 0% on the first TZS 3.96 million to 30% on income exceeding TZS 16.8 million. Non-residents are taxed at a flat 20% on Tanzanian-sourced employment income. PAYE applies to employment income. Deductions are available for social security contributions and approved donations.
| Income Range | Tax Rate |
|---|---|
| TSh 0 – TSh 4.0M | 0% |
| TSh 4.0M – TSh 8.6M | 8% |
| TSh 8.6M – TSh 12.6M | 20% |
| TSh 12.6M – TSh 16.8M | 25% |
| TSh 16.8M+ | 30% |
Corporate Tax
Resident companies are taxed at 30% on worldwide income. Newly listed companies on the Dar es Salaam Stock Exchange enjoy a reduced rate of 25% for three years. Companies in Special Economic Zones benefit from tax incentives including reduced corporate rates. Alternative minimum tax of 0.5% of turnover applies when it exceeds the standard tax computation.
Standard Rate
30%
Capital Gains Tax
Capital gains are treated as part of total income but subject to a realisation basis. For residents, gains on investments held for less than 36 months are included in total income. Gains on investments held for 36 months or more are taxed at 10%. Non-residents pay 20% on gains from Tanzanian assets.
Rate
10%
VAT / Sales Tax
VAT is levied at 18% on taxable goods and services. Exempt supplies include unprocessed food, agricultural inputs, healthcare, education, and financial services. Exports are zero-rated. Registration is mandatory for businesses with annual taxable turnover exceeding TZS 200 million. Tanzania Mainland and Zanzibar have separate VAT administrations.
Standard Rate
18%
Cryptocurrency Tax
Tanzania does not have specific cryptocurrency tax legislation. The Bank of Tanzania has warned against cryptocurrency use. General income tax principles would apply to any gains from crypto transactions if they were to be reported.
Tax Treaties
Tanzania has approximately 12 double taxation agreements in force. The network covers key investment partners. As an East African Community member, Tanzania benefits from regional tax coordination.
Treaty Network
12
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Tanzania
See how much you could save by moving here from your current country.
+$14K
Tax in United States
$24K
24.4% effective
Tax in Tanzania
$10K
10% effective
You Save
59%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
