Lesotho | Income tax updates for 2026/2027

Lesotho | Income tax updates for 2026/2027

Lesotho, Income Tax (Amendment of Monetary Amounts) Regulations, 2026, published in the Government Gazette on 27 March 2026, introduces updates to personal tax credits and income tax thresholds, effective 1 April 2026.
What is changing
Personal tax credit
  • The annual personal tax credit increases from M11,640.00 to M12,240.00.
  • This is equal to a monthly credit of M1,020.00.
Lower tax bracket threshold
  • The threshold for the first income tax band increases from M74,040.00 to M77,760.00.
  • This is equal to a monthly threshold of M6,480.00.
Resident individual tax rates
  • From 1 April 2026, the following annual rates apply:
    ◦ Up to M77,760, tax is charged at 20% of taxable income.
    ◦ Above M77,760, tax is M15,552 plus 30% of the amount exceeding M77,760.
  • The fixed amount of M15,552 represents 20% of the lower band threshold.

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