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Tanzania vs Ethiopia
Tax Rate Comparison

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

πŸ‡ΉπŸ‡Ώ Tanzania
vs
πŸ‡ͺπŸ‡Ή Ethiopia
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–30%
30% top; East Africa Community harmonization
No change
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
18%
18% standard; no change expected
No change
15%
15% standard
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30% maintained
No change
30%
30%; industrial parks offer incentives
No change
Capital Gains Tax
Capital Gains Tax
10%
10% stable
No change
15%
15% maintained
No change
Social Security & Payroll
Social Security / Payroll
~20%
NSSF expanding coverage; adequacy improving
No change
~17%
Pension expansion targeted
No change
State, Regional & Local Taxes

πŸ‡ΉπŸ‡Ώ Tanzania β€” 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).

πŸ‡ͺπŸ‡Ή Ethiopia β€” 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.

⚠️ 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.

Tanzania vs Ethiopia: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ͺπŸ‡Ή Ethiopia has a higher top income tax rate (0–30% vs 0–35%). πŸ‡ΉπŸ‡Ώ Tanzania is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Tanzania has a higher consumption tax (18% vs 15%).

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

πŸ“ˆ Capital Gains: πŸ‡ΉπŸ‡Ώ Tanzania taxes investment gains at a lower rate (10% vs 15%), benefiting investors.

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