Lesotho vs South Africa
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π±πΈ Lesotho β Lesotho Tax System
Lesotho is a landlocked enclave within South Africa with progressive income tax up to 35%. VAT is 15%. The country's economy is closely tied to South Africa β customs revenues from SACU (Southern African Customs Union) provide a major share of government income. Textile exports (especially to the US under AGOA) and diamond mining are key sectors. Water royalties from the Lesotho Highlands Water Project also contribute.
πΏπ¦ South Africa β Provincial & Municipal Taxes
South Africa's 9 provinces do not levy their own income tax β this is national. Municipalities levy property rates (0.5%β2.5% of assessed value/year), utilities, and refuse levies. Cape Town and Johannesburg have relatively higher municipal rates. Load-shedding prompted energy-related tax credits in recent budgets.
Lesotho vs South Africa: Key Tax Differences (2026)
π° Income Tax: πΏπ¦ South Africa has a higher top income tax rate (0β35% vs 18β45%). π±πΈ Lesotho is more favourable for high earners.
π VAT/Sales Tax: South Africa has a higher consumption tax (15% vs 16%).
π’ Corporate Tax: π±πΈ Lesotho offers a lower corporate rate (25% vs 27%), which can influence business location decisions.
π Capital Gains: πΏπ¦ South Africa taxes investment gains at a lower rate (18% vs 25%), benefiting investors.