Tanzania Service Levy Calculator
The service levy is charged by local government authorities on a business's net turnover. Since 1 July 2025 the rate is a flat 0.25% for every LGA, and it is paid quarterly. Enter a quarter's net turnover to see what you owe.
Filed under Business & VAT
Key facts
- Service levy rate: 0.25% of net turnover, fixed for every local government authority since 1 July 2025.
- The base excludes VAT and excise duty — it is turnover, not profit.
- Paid quarterly to the authority where the business operates.
- A loss-making quarter can still attract the levy.
How the 0.25% service levy is calculated
The Finance Act 2025 amended the Local Government Finance Act to fix the rate at 0.25% of net turnover, replacing the previous framework in which each authority could set anything up to 0.3%. Sector arrangements below that ceiling — such as the 0.2% some banks had — are no longer permitted. The base is net turnover excluding excise duty and VAT, and payment falls due quarterly.
Service levy = 0.25% × net turnover for the quarterService levy by quarterly net turnover
| Quarterly net turnover (TZS) | Service levy at 0.25% (TZS) | Annualised if repeated (TZS) |
|---|---|---|
| 10,000,000 | 25,000 | 100,000 |
| 50,000,000 | 125,000 | 500,000 |
| 100,000,000 | 250,000 | 1,000,000 |
| 500,000,000 | 1,250,000 | 5,000,000 |
Service levy worked examples
A quarter's net turnover of 100,000,000 TZS
Grace runs a wholesale business in Njombe and files the levy every quarter.
A quarter's net turnover of 100,000,000 TZS attracts 250,000 TZS in service levy at 0.25% — that is 1,000,000 TZS if the same turnover repeats all year. The base is net turnover excluding excise duty and VAT.
A smaller business with 12,000,000 TZS in the quarter
Halima, a smaller wholesaler in the same district, on the same 0.25% rate.
A quarter's net turnover of 12,000,000 TZS attracts 30,000 TZS in service levy at 0.25% — that is 120,000 TZS if the same turnover repeats all year. The base is net turnover excluding excise duty and VAT.
Tanzania Service Levy: assumptions and limits
What it assumes
- Service levy is 0.25% of net turnover, charged quarterly by the local government authority.
- The base is net turnover excluding excise duty and VAT, as the Finance Act 2025 amendment sets out.
Where the result does not apply
- Charged on turnover, not profit: a business making a loss on the quarter can still owe it.
- Does not determine which authority may levy it or whether a particular business is liable - that follows the local government legislation and the business's location.
- Other local government charges and licences are not included.
Service levy FAQs
What is the service levy rate in Tanzania?
0.25% of net turnover, fixed for all local government authorities since 1 July 2025. Before that each authority could set up to 0.3%.
Is service levy charged on turnover or profit?
Turnover — specifically net turnover excluding excise duty and VAT. It is not a tax on profit.
How often is service levy paid?
Quarterly, to the local government authority where the business operates.
Do the old sector-specific rates still apply?
No. The Act removed the discretion that allowed them, so arrangements such as the 0.2% banking rate are no longer supported by law.
When is service levy due?
It is paid quarterly to the local government authority. The exact filing dates are set by the authority, so diarise the four deadlines it gives you; late payment attracts fines and interest.
What is the penalty for late service levy?
Late payment attracts fines and interest from the local authority. The exact amount is set by the local government legislation and the council, so confirm it with the authority that charges the levy.
Results are estimates provided for information only and do not constitute financial, legal or tax advice. Consult a qualified professional before making financial decisions.
Delta Tech Solutions prepared this page. No external tax, accounting or legal professional reviewed it — the figures were checked against the sources listed above, and you should confirm anything you rely on with the authority that sets it.
Maintained by David M at Delta Tech Solutions · Figures last checked 19 September 2026 · Next check due 19 March 2027
Content updated 24 October 2026
Related calculators
Tanzania VAT Calculator
Free Tanzania VAT calculator: add or remove 18% VAT on any amount in TZS, showing the VAT amount and total. Accurate for invoices and pricing.
FinanceTanzania SDL Calculator
Free Tanzania Skills Development Levy (SDL) calculator: work out the 3.5% employer levy on your monthly payroll. Fast and free, no sign-up.
FinanceTanzania Presumptive Tax Calculator
Work out Tanzania's presumptive (turnover) tax from annual turnover, with the flat annual rates for taxi, ride-hailing, tour and goods vehicles.
Embed this calculator
Add this calculator to your site with a few lines of HTML. It stays free and the snippet includes a visible attribution line linking back to www.calculator.co.tz — keep that line as it is, or delete it if you would rather not link.
<iframe
src="https://www.calculator.co.tz/embed/tanzania-service-levy-calculator"
title="Tanzania Service Levy Calculator"
width="600"
height="520"
style="max-width:100%;border:0;"
loading="lazy"
allow="clipboard-write"
></iframe>
<p style="margin:8px 0 0;font-size:12px;text-align:center;">
<a href="https://www.calculator.co.tz/tools/tanzania-service-levy-calculator" target="_blank" rel="noopener">Tanzania Service Levy Calculator by calculator.co.tz</a>
</p>