How PAYE and NSSF work in Tanzania
Pension contributions to an approved fund are deducted before tax, so the order on a payslip is:
- NSSF employee contribution, 10% of gross monthly wages.
- Taxable pay, gross minus NSSF.
- PAYE on taxable pay using the monthly table.
The employer adds its own 10% to NSSF, plus the Skills and Development Levy and Workers Compensation Fund contribution. Those are employer costs and leave your net pay unchanged.
TRA monthly PAYE rates for residents
The TRA table for Mainland residents, in force since 1 July 2023:
| Monthly taxable pay | Rate on the band | Tax at top of band |
|---|---|---|
| Up to TZS 270,000 | 0% | TZS 0 |
| TZS 270,000 to TZS 520,000 | 8% | TZS 20,000 |
| TZS 520,000 to TZS 760,000 | 20% | TZS 68,000 |
| TZS 760,000 to TZS 1,000,000 | 25% | TZS 128,000 |
| Over TZS 1,000,000 | 30% | n/a |
TRA's own example: taxable pay of TZS 1,240,000 attracts TZS 200,000, which is TZS 128,000 plus 30% of the amount above TZS 1,000,000.
Worked example: TSh 1,000,000 a month
| Item | Per month | Per year |
|---|---|---|
| Gross salary | TZS 1,000,000 | TZS 12,000,000 |
| NSSF (10%) | −TZS 100,000 | −TZS 1,200,000 |
| Taxable pay | TZS 900,000 | TZS 10,800,000 |
| PAYE | −TZS 103,000 | −TZS 1,236,000 |
| Net pay | TZS 797,000 | TZS 9,564,000 |
Taxable pay of TZS 900,000 sits in the 25% band: TZS 68,000 on the first TZS 760,000 and 25% of the next TZS 140,000. Without the NSSF deduction the tax would be TZS 128,000, so the pension lowers PAYE by TZS 25,000.
NSSF pension contributions
The National Social Security Fund collects 20% of gross wages for private sector employees, half from the worker and half from the employer. The contribution counts toward retirement, invalidity and survivors' pensions. Public servants belong to the Public Service Social Security Fund, which has its own rates.
A worker outside a scheme can untick the NSSF box. For a low earner the effect is small: at TZS 300,000 a month, NSSF is TZS 30,000 and PAYE only TZS 0.
Net pay in Tanzania at six salary levels
Monthly figures with NSSF.
| Gross per month | NSSF | PAYE | Net pay | Total deductions |
|---|---|---|---|---|
| TZS 300,000 | TZS 30,000 | TZS 0 | TZS 270,000 | 10.0% |
| TZS 500,000 | TZS 50,000 | TZS 14,400 | TZS 435,600 | 12.9% |
| TZS 800,000 | TZS 80,000 | TZS 60,000 | TZS 660,000 | 17.5% |
| TZS 1,000,000 | TZS 100,000 | TZS 103,000 | TZS 797,000 | 20.3% |
| TZS 2,000,000 | TZS 200,000 | TZS 368,000 | TZS 1,432,000 | 28.4% |
| TZS 5,000,000 | TZS 500,000 | TZS 1,178,000 | TZS 3,322,000 | 33.6% |
A pay rise is worth less than its face value once you are in the higher bands. Going from TZS 1,000,000 to TZS 1,200,000 a month adds TZS 200,000 of gross but TZS 131,000 of net pay, because 10% goes to NSSF and PAYE takes 25% to 30% of what remains. Below TZS 270,000 of taxable pay, by contrast, only the pension contribution comes off.
Moving between Dar es Salaam and Nairobi? The Kenya Gross to Net Calculator uses Kenya's SHIF, Housing Levy and NSSF rules for the same comparison.
Which payments are taxable
- Taxable: salary, wages, overtime, leave pay, bonuses, commissions and cash allowances for housing, transport or meals.
- Benefits in kind: a car or housing provided by the employer is valued under TRA rules and added to taxable pay.
- Not taxed: refunds of genuine business expenses and employer contributions to an approved pension fund.
Monthly salary and Zanzibar
Salaries in Tanzania are paid monthly and PAYE is due to TRA by the seventh day of the following month. Zanzibar has its own revenue board and PAYE rules, so this calculator is for Mainland employment only. Enter a yearly figure to see it spread over twelve equal months.
Assumptions and sources for Tanzania
- Mainland resident employee with one employer and the same pay every month.
- All gross pay is subject to NSSF at 10%.
- No benefits in kind and no income from a second employer.
- The 2023/24 table is the latest one TRA has published, and no later change to the employment bands was found for 2026.
Sources: Tanzania Revenue Authority monthly income tax tables and the National Social Security Fund. Rates for 2026.
Frequently Asked Questions
How much is TSh 1,000,000 gross after tax in Tanzania?
TZS 797,000 a month, after NSSF of TZS 100,000 and PAYE of TZS 103,000.
What is the tax free salary in Tanzania?
Taxable pay up to TZS 270,000 a month. With NSSF deducted first, a gross salary of TZS 300,000 pays no PAYE.
Is NSSF deducted before PAYE in Tanzania?
Yes. The employee contribution to an approved pension fund is subtracted from gross pay before the PAYE table is applied.
What is the highest PAYE rate?
30%, on monthly taxable pay above TZS 1,000,000.
Does this gross to net salary calculator work for Zanzibar?
No. Zanzibar applies its own PAYE rules through the Zanzibar Revenue Board, so results here are for Mainland Tanzania.
Does the employer NSSF share reduce my take home pay?
No. The employer pays its 10% on top of your gross salary.
Can I use it for a salary in Arusha, Mwanza or Dodoma?
Yes. PAYE and NSSF rates are the same across Mainland Tanzania, so the city where you work does not change the result.