Lesotho income tax calculator

Use this for a full tax year, from 1 April to 31 March. It suits a sole trader filing a return, a pensioner, or an employee who wants to check the yearly total.

The rates are the ones Revenue Services Lesotho (RSL) set for resident individuals from 1 April 2026.

How it's calculated

Take your income for the year and subtract your approved pension contributions (up to 20% of income) and other allowable deductions.
Tax the first M 77,760 at 20% and the rest at 30%.
Subtract the tax credit of M 12,240. A negative result means no tax, not a refund.

An example

From RSL's table: on M114 000 a year, the first M77 760 costs M15 552 and the other M36 240 costs M10 872. Less the M12 240 credit, the tax is M14 184.

Frequently asked questions

How many tax rates does Lesotho have for individuals?

Two. Chargeable income up to M 77,760 a year is taxed at 20% and income above it at 30%.

Is the tax credit paid out if my tax is lower?

No. RSL treats a negative or nil result as non-taxable income. The credit only reduces tax, it never becomes a refund.

Who uses these rates?

Resident individuals, including sole traders for their yearly tax, employees and pensioners through PAYE.

Key terms

Tax year: In Lesotho it runs from 1 April to 31 March.
Sole trader: A person who runs a business in their own name and pays income tax on its profit.
RSL: Revenue Services Lesotho, the tax authority. It was known before as the Lesotho Revenue Authority.