APRIL 2026 – LESOTHO
TAX CHANGES 2026/2027
It is important that employers note the following:
Changes to Lesotho’s tax tables for the 2026/2027 tax year
Following the 2026/2027 Budget Speech delivered on 18 February 2026, the Income Tax (Amendment of Monetary Amounts) Regulations, 2026 were gazetted on 27 March 2026 and came into effect on 1 April 2026. The regulations give legislative effect to the income tax changes announced during the Budget Speech.
In terms of Legal Notice No. 24 of 2026, the regulations amend the monetary amounts prescribed in section 73 and the Second Schedule to the Income Tax Act No. 9 of 1993 and include:
- An increase in the lower tax bracket threshold from M74,040.00 to M77,760.00, and
- An increase in the non‑refundable personal tax credit applicable to resident individuals from M11,640.00 to M12,240.00.
With effect from 1 April 2026, the applicable rates for PAYE are as follows:
To view the legal notice, follow the link.
