Pay and rights at work · 5 min read
ZRA PAYE tax bands 2026: how to calculate PAYE in Zambia, with examples
You pay nothing on the first K5,100 a month, then 20%, 30% and 37%. On K15,000 gross that's K3,176 in PAYE, worked on your gross pay.
ZRA's 2026 PAYE bands charge 0% on the first K5,100 a month, 20% on the next K2,000, 30% on the next K2,100 and 37% on everything above K9,200. The tax is worked on your gross pay, and your pension doesn't come off first. So K15,000 a month means K3,176 in PAYE, and that's the example ZRA prints on its own page. These are the bands for the 2026 charge year. We found no official 2027 Budget text on 2 November 2026, so check again in January 2027.
The 2026 PAYE bands
PAYE is charged in slices. Each rate only touches the part of your pay inside its band, so a raise can't leave you with less money overall.
- First K5,100: 0%
- K5,100.01 to K7,100: 20%, at most K400
- K7,100.01 to K9,200: 30%, at most K630
- K9,200.01 and above: 37%
That also gives you a shortcut. If your gross pay is above K9,200, PAYE is K1,030 plus 37% of whatever is above K9,200.
How to calculate PAYE, step by step
Start with your gross pay for the month: basic pay plus allowances, overtime, commission and anything else paid to you. Then fill the bands from the bottom. Here's ZRA's own example.
First K5,100 at 0% = K0.00 Next K2,000 at 20% = K400.00 Next K2,100 at 30% = K630.00 Last K5,800 at 37% = K2,146.00 PAYE = K3,176.00
The same steps give K180 on K6,000, because only K900 falls in the 20% band. On K8,000 they give K670: K400 from the 20% band, and K270 from the K900 at 30%.
What you take home at common pay levels
ZRA's example stops at tax, so its net of K11,824 on K15,000 leaves out NAPSA and NHIMA. A real payslip takes them too. NAPSA is 5% of gross up to K1,861.80 a month in 2026, and NHIMA is 1% of basic pay. The table treats all pay as basic. If part of your pay is allowances, NHIMA is smaller and your net is a little higher.
K5,100 gross: PAYE K0, NAPSA K255, NHIMA K51, net K4,794 K6,000 gross: PAYE K180, NAPSA K300, NHIMA K60, net K5,460 K8,000 gross: PAYE K670, NAPSA K400, NHIMA K80, net K6,850 K10,000 gross: PAYE K1,326, NAPSA K500, NHIMA K100, net K8,074 K15,000 gross: PAYE K3,176, NAPSA K750, NHIMA K150, net K10,924 K20,000 gross: PAYE K5,026, NAPSA K1,000, NHIMA K200, net K13,774 K30,000 gross: PAYE K8,726, NAPSA K1,500, NHIMA K300, net K19,474 K50,000 gross: PAYE K16,126, NAPSA K1,861.80, NHIMA K500, net K31,512.20
Does NAPSA reduce your PAYE?
No, and this is a common mistake in calculators online. ZRA says that since 1 January 2018 it's no longer necessary to deduct allowable pension contributions before arriving at chargeable income. ZRA's own calculator script does the same: it runs the bands on gross pay, then takes off tax and contributions.
One warning on that calculator page. Its table still says 2023 and its NAPSA cap is out of date, so use it for the method only. The figures for 2026 are on ZRA's tax information page and NAPSA's own calculator page.
What counts as pay, and what doesn't
ZRA defines emoluments as wages, salaries, overtime, leave pay, commissions, fees, bonuses and any other payments from employment or office. All allowances and cash benefits are taxable, so your housing and transport allowances go into the sum.
ZRA's list of exceptions is short: Labour Day awards, ex gratia payments, medical expenses, funeral expenses, councillors' sitting allowances, and benefits you can't turn into cash, such as free housing owned and provided by the employer, canteen expenses and personal to holder cars. If your employer pays your rent, electricity, phone, water or school fees for you, it must add that to your pay and tax it.
Casual and daily paid workers are taxed too, using ZRA's separate tables for them. The Skills Development Levy of 0.5% of gross pay isn't a deduction from you: the law says the employer bears it.
Leaving a job, and getting tax back
When you leave, ask your old employer for Form ITF/P13, which shows your payroll details. Give it to your new employer. Without it, ZRA warns you may have more tax deducted.
PAYE is only refunded if you were overcharged. ZRA names payroll errors, wrong bands, stopping work and staying unemployed to the end of the charge year, and eligible deductions such as professional subscriptions. You claim by filing the ITF/1A return on the ZRA portal, with your termination letter, your payslips and the P13. For end of employment, you have 6 years to claim. The money goes straight to your bank account, so nobody needs to collect it for you.
If your employer takes PAYE and pays ZRA late, ZRA charges the employer a 5% penalty plus interest of 2% above the Bank of Zambia discount rate.
Sources and further reading
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Frequently asked questions
What is the PAYE tax-free threshold in Zambia for 2026?
K5,100 a month. Pay up to that amount is taxed at 0%. You still pay NAPSA and NHIMA on it.
What percentage is PAYE in Zambia?
It depends on the slice of pay: 0%, 20%, 30% or 37%. Your overall rate is lower than your top band. On K15,000 the PAYE of K3,176 is about 21% of gross.
Is a bonus taxed in Zambia?
Yes. ZRA lists bonuses among emoluments, so a bonus counts as pay for PAYE.
Have the bands changed for 2027?
We found no official 2027 Budget text on 2 November 2026. We'll check again in January 2027, and until then this page gives the 2026 charge year only.