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How PAYE Is Calculated in Lesotho 2026/2027
This guide explains the calculation method used by the TaxEase PAYE planning calculator. It is educational and independent, not an RSL assessment or filing.
The current monthly bands
For the 2026/2027 structure, the first M6,480 of monthly chargeable income is taxed at 20%. The amount above M6,480 is taxed at 30%. The monthly tax credit is M1,020 for the applicable resident taxpayer.
Worked example: M20,000 chargeable income
- First band: M6,480 x 20% = M1,296.
- Excess: M20,000 - M6,480 = M13,520.
- Excess tax: M13,520 x 30% = M4,056.
- Tax before credit: M1,296 + M4,056 = M5,352.
- Less monthly credit: M5,352 - M1,020 = M4,332 estimated PAYE before any approved deduction treatment.
What the calculator needs
Enter gross salary manually, then review allowances, overtime, bonus, pension and other deductions. The result shows the assumptions and calculation rows so you can check the working.
Source and review
Open the Lesotho PAYE CalculatorReviewed 9 August 2026. RSL 2026/2027 income tax structure. Confirm current requirements before filing or relying on a tax position.