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.
How it works
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 quarterWorked examples
Example
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.
Frequently asked questions
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.
Results are estimates provided for information only and do not constitute financial, legal or tax advice. Consult a qualified professional before making financial decisions.
Reviewed by the Calculator editorial team · Last updated 19 September 2026
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