Changes to Zambia's Income Tax Brackets for 2024

The Personal Income tax legislation of Zambia was recently changed through the 2024 Budget Address which was presented to the National Assembly on September 29, 2023. These changes were made on December 26, 2023 by The Income Tax (Amendment) Act, of 2023 in order to provide relief for wage earners and will be effective from January 1, 2024.

Key Changes

Increased Exemption Threshold

The tax-free income threshold has been increased from K4,800.00 to K5,100.00. In other words, individuals earning up to K5,100.00 per month will not be subject to any income tax.

Reduction in Top Tax Rate

The highest tax rate has been marginally lowered, decreasing from 37.5% to 37.0%; a slight change however providing some relief to those individuals who are within this income bracket.

Updated Income Tax Bands

Below are new income tax bands from January 1st ,2024.

From	To	Tax Rate
0.00	5,100.00	0.00%
5,100.01	7,100.00	20.00%
7,100.01	9,200.00	30.00%%
9,200.10 and Above	_	37.00%%

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Employers need to update payroll systems to accommodate the new tax brackets and rates. This upgrade is not merely a statutory obligation but a practical approach to ensure correct payroll processing and compliance with the new regulations. The employees should scrutinize their pay slips so as to see how these amendments affect them in terms of their net wages

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