LS · Africa · LSL
Lesotho
Tax rates
Income Tax
30%
Top rate, progressive scale
Source: Revenue Services Lesotho — Employees' Tax (Pay As You Earn) · as of 2026-07-20Corporate Tax
25%
Statutory rate
Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01VAT
15%
Standard rate
Source: PwC — VAT and Indirect Taxes in Africa 2023, Lesotho · as of 2023-01-26Wealth Tax
0%
Not levied
No verified data yet for: Capital Gains Tax, Crypto Tax.
Estimate your income tax
Enter a gross annual salary to estimate 2026 national income tax for Lesotho using verified brackets — total tax, effective and marginal rate, net income, and the per-band breakdown. National income tax only; social contributions and sub-national taxes are excluded unless the notes say otherwise. The full calculator covers every country with verified rates.
The calculator needs JavaScript — every figure stays readable without it. The full bracket schedule is under Brackets & notes below, and the calculator page lists every country's schedule.
Brackets, notes & in practice
Income Tax
| Threshold | Rate |
|---|---|
| LSL 0 | 20% |
| LSL 77,760 | 30% |
Marginal rates on annual chargeable income; a non-refundable annual tax credit of M12,240 is then deducted from the computed liability.
Lesotho taxes resident individuals' employment income under a progressive two-rate structure: 20% on chargeable income between M1.00 and M6,480.00 a month, and a top rate of 30% on the excess, before applying a non-refundable tax credit.
VAT
VAT has applied since 2003 under the Value Added Tax Act No. 9 of 2001, at a standard rate of 15%. Electricity supplies are taxed at a reduced 10% rate.
In practice
- Filing
VAT registration is compulsory once annual turnover exceeds the M2,000,000 threshold, with voluntary registration available below it; auctioneers must register regardless of turnover. Returns and VAT payments are due by the 20th of the month following each tax period.
Source: Revenue Services Lesotho — Value Added Tax (VAT) · as of 2026-07-27- Exemptions
Lesotho's VAT rate schedule applies a 0% rate to exports and basic commodities.
Source: Revenue Services Lesotho — Value Added Tax (VAT) · as of 2026-07-27
Wealth Tax
No net wealth tax is levied in Lesotho. It is not among the tax categories listed by Revenue Services Lesotho: Pay As You Earn/income tax, corporate income tax, fringe benefits tax, withholding tax, VAT, plastic levy, tobacco and alcoholic products levy, and customs and excise duties.