Lesotho vs South Africa
Tax Rate Comparison
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💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
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Corporate Tax Rate
Capital Gains Tax
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🇱🇸 Lesotho — 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 — 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.
🇿🇦 South Africa — Provincial & Municipal Taxes
South Africa's 9 provinces do not levy their own income tax — this is national. Municipalities levy property rates (0.5%–2.5% 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)
💰 Income Tax: 🇿🇦 South Africa has a higher top income tax rate (0–35% vs 18–45%). 🇱🇸 Lesotho is more favourable for high earners.
🛒 VAT/Sales Tax: South Africa has a higher consumption tax (15% vs 16%).
🏢 Corporate Tax: 🇱🇸 Lesotho offers a lower corporate rate (25% vs 27%), which can influence business location decisions.
📈 Capital Gains: 🇿🇦 South Africa taxes investment gains at a lower rate (18% vs 25%), benefiting investors.