Lesotho PAYE Tax Table 2026/27: How Much Tax You Pay

If you earn a salary in Lesotho, you won't pay any PAYE until you earn more than about M5,100 a month. Above that, tax starts at 20% and rises to 30% on higher pay.

On a M10,000 salary, PAYE comes to M1,332 a month. The amounts changed on 1 April 2026, and they leave most earners slightly better off than last year. Here's how it's worked out.

Lesotho PAYE tax table 2026/27

Source: the Income Tax (Amendment of Monetary Amounts) Regulations, 2026 (Legal Notice No. 24 of 2026), as set out in this Lesotho legal briefing on the 2026 amendments. The rates of 20% and 30% are unchanged; only the band and the credit went up.

What changed on 1 April 2026

The 2025/26 figures are from Revenue Services Lesotho's 2025–2026 tax tables. Some online calculators still use even older figures (a M64,080 threshold), so check which year a calculator is set to.

How to calculate PAYE in Lesotho

Lesotho's PAYE works in three steps: tax the income at 20% and 30%, then subtract the tax credit.

Example: M10,000 a month

1. 20% of the first M6,480 = M1,296
2. 30% of the rest (M10,000 − M6,480 = M3,520) = M1,056
3. Tax before credit: M1,296 + M1,056 = M2,352
4. Minus the personal tax credit: M2,352 − M1,020 = M1,332 PAYE

Example: M6,000 a month (all within the 20% band)

1. 20% of M6,000 = M1,200
2. Minus the credit: M1,200 − M1,020 = M180 PAYE

Shortcut for anyone earning more than M6,480 a month: PAYE = (salary × 30%) − M1,668. For M10,000: M3,000 − M1,668 = M1,332.

Why you pay nothing below M5,100 a month

The tax credit of M1,020 a month cancels out 20% tax on the first M5,100 of income (20% × M5,100 = M1,020). So anyone earning M5,100 a month or less pays no PAYE at all, even though there's no formal "zero" band. A year earlier, the cut-off was M4,850.

PAYE and take-home pay at common salaries (2026/27)

"Pay after PAYE" is before pension, medical aid, loans or other deductions. Above M6,480 a month, the saving is the same M81 for everyone: M50 from the bigger credit and M31 from the wider 20% band.

Who do the 2026 amounts apply to?

The new band and credit apply to all resident individuals: employees taxed through PAYE, sole traders, and pensioners. If you have income from more than one employer, each employer may give you the full credit, which can leave you owing tax at the end of the year. Tell your second employer, or set money aside.

Common PAYE mistakes in Lesotho

• Payroll still on 2025/26 amounts. If your April 2026 (or later) payslip shows the same PAYE as March on the same salary, your employer may not have updated to the M6,480 band and M1,020 credit. You should be M81 a month better off if you earn above M6,480.
• Forgetting the credit. A calculation that stops at 20% and 30% overstates tax by M1,020 a month.
• Old calculators. Some still use a M64,080 annual threshold from earlier years.
• Two jobs, two credits. Claiming the full credit with two employers usually means a tax bill later.

Once you're paid, moving money costs extra too; see M-Pesa and EcoCash charges in Lesotho. Many Basotho work in or are paid from South Africa; our South Africa income tax calculator works out SARS PAYE. For the rest of the region, compare PAYE in Namibia and the BURS PAYE tax table in Botswana. More Lesotho guides are on our Lesotho page.

Frequently asked questions

What is the PAYE tax threshold in Lesotho for 2026/27?

The 20% band runs up to M77,760 a year (M6,480 a month), and income above that is taxed at 30%. With the M12,240 annual tax credit, you pay no PAYE until your income passes M61,200 a year (M5,100 a month).

How much PAYE do I pay on M10,000 a month in Lesotho?

M1,332: 20% of M6,480 (M1,296) plus 30% of M3,520 (M1,056), minus the M1,020 tax credit.

What is the personal tax credit in Lesotho?

M12,240 a year, or M1,020 a month, from 1 April 2026. It was M11,640 (M970 a month) in 2025/26.

When did the new Lesotho tax tables start?

1 April 2026, the start of Lesotho's 2026/27 tax year, under the Income Tax (Amendment of Monetary Amounts) Regulations, 2026 (Legal Notice No. 24 of 2026).

What are the income tax rates in Lesotho?

Two rates: 20% on income up to the threshold and 30% above it. The rates haven't changed; the threshold and credit rise most years.

Do pensioners get the new tax credit in Lesotho?

Yes. The 2026 band and credit apply to all resident individuals, including pensioners, sole traders and employees.