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Kenya vs Tanzania
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇰🇪 Kenya
vs
🇹🇿 Tanzania
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
10–35%
Ruto administration fiscal consolidation; rates stable
No change
0–30%
30% top; East Africa Community harmonization
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
16%
16% maintained; exemption list under review
No change
18%
18% standard; no change expected
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30% stable; East Africa harmonization discussions
No change
30%
30% maintained
No change

Capital Gains Tax

Capital Gains Tax
15%
15% property CGT unchanged
No change
10%
10% stable
No change

Social Security & Payroll

Social Security / Payroll
~14%
Universal health coverage (SHA) replacing NHIF from 2024
No change
~20%
NSSF expanding coverage; adequacy improving
No change
State, Regional & Local Taxes

🇰🇪 KenyaCounty & Local Authority Taxes

Kenya's 47 counties levy business permits (single business permit), property rates, and various local service charges. County governments have own-source revenue from markets, parking, land rates, and entertainment taxes. The Kenya Revenue Authority (KRA) administers national taxes. A housing levy of 1.5% of gross salary (employer+employee) was introduced in 2023. The digital service tax (DST) at 1.5% on digital marketplace revenues was replaced by a significant economic presence tax framework.

🇹🇿 TanzaniaLocal Government Authority Taxes

Tanzania's 26 regions and 184 district/city councils levy local government taxes including property tax (for urban areas), business licence fees, and various service levies. The Tanzania Revenue Authority (TRA) administers all national taxes. Zanzibar has its own tax administration and slightly different rates for some taxes. The Local Government Finance Act sets the framework for council taxation. The country has been expanding its tax base through digitalization and mandatory electronic fiscal devices (EFDs).

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Kenya vs Tanzania: Key Tax Differences (2026)

💰 Income Tax: 🇰🇪 Kenya has a higher top income tax rate (10–35% vs 0–30%). 🇹🇿 Tanzania is more favourable for high earners.

🛒 VAT/Sales Tax: Tanzania has a higher consumption tax (16% vs 18%).

🏢 Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).

📈 Capital Gains: 🇹🇿 Tanzania taxes investment gains at a lower rate (10% vs 15%), benefiting investors.

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