Tanzania vs Ethiopia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 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)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇹🇿 Tanzania — Local 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).
🇪🇹 Ethiopia — Regional State Taxes
Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.
Tanzania vs Ethiopia: Key Tax Differences (2026)
💰 Income Tax: 🇪🇹 Ethiopia has a higher top income tax rate (0–30% vs 0–35%). 🇹🇿 Tanzania is more favourable for high earners.
🛒 VAT/Sales Tax: Tanzania has a higher consumption tax (18% vs 15%).
🏢 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.