East & Southern Africa
Lesotho tax rates 2026
A 25% corporate rate and a two-band personal system reaching 30%, with the loti pegged to the South African rand. Textiles and water royalties from South Africa anchor the economy.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 30%Two bands, with the higher rate of 30% applying above the threshold, subject to a personal credit. |
|---|---|
| Corporate income | 25% |
| Capital gains | Included in taxable income. |
| VAT | 15% |
| Dividends (WHT) | 25% |
| Interest (WHT) | 25% |
| Royalties (WHT) | 25% |
| Social security (employee) | None |
| Social security (employer) | None |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | Property rates apply at municipal level. |
| Other | The loti is pegged to the rand. A reduced 10% corporate rate applies to manufacturing income. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
- Special regime
- Manufacturing rate: 10% corporate tax on qualifying manufacturing income
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.