How Tanzania PAYE is Calculated
PAYE (Pay As You Earn) is the income tax deducted from your salary in Tanzania before you're paid. This guide walks through the current bands, the tax-free threshold, and worked examples — and shows you exactly how your take-home pay is reached.
Reviewed by the Calculator editorial team · Last updated 6 September 2026
How the PAYE bands work
Tanzania taxes resident employment income progressively. Each band's rate applies only to the income within that band. The first 270,000 TZS per month is tax-free, then 8% on income up to 520,000, 20% up to 760,000, 25% up to 1,000,000, and 30% on anything above. Your total PAYE is the sum across the bands your salary reaches.
The 270,000 TZS tax-free threshold
The first 270,000 TZS of monthly income is taxed at 0%. This is why lower salaries pay little or no PAYE, and why a 500,000 TZS salary only pays tax on the 230,000 TZS above the threshold.
What reduces your taxable income
Your statutory pension contribution — NSSF (10%, private sector) or PSSSF (5%, public sector) — is deducted from your salary before PAYE is calculated. This lowers the amount PAYE is applied to, so contributing to a pension also reduces your income tax.
Worked example
On a 1,000,000 TZS gross monthly salary, the tax is 128,000 TZS (0% on the first 270,000, 8% on 250,000, 20% on 240,000, and 25% on 240,000). Your take-home is about 872,000 TZS before other deductions. Use the calculator below to check your own salary.
Tanzania PAYE Calculator
Try it with your own numbers:
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Frequently asked questions
What are the Tanzania PAYE tax bands?
0% up to 270,000 TZS, 8% on 270,001–520,000, 20% on 520,001–760,000, 25% on 760,001–1,000,000, and 30% above 1,000,000 TZS per month.
Is PAYE deducted before or after NSSF?
Your employee NSSF/PSSSF contribution is deducted from the salary before PAYE is calculated, so it reduces the amount of tax you pay.
When is PAYE paid to TRA?
Employers remit PAYE to the Tanzania Revenue Authority by the 7th of the following month.