The Income Tax (Amendment of Monetary Amounts) Regulations, 2026, published in the Lesotho Government Gazette on 27 March 2026, amends monetary thresholds and credits under the Income Tax Act, 1993. The changes apply from 1 April 2026.
Legislative summary of changes
Increase in personal tax credit – Section 73
- The annual personal tax credit increases from M11,640.00 to M12,240.00.
- This replaces the previous statutory amount under Section 73 of the Income Tax Act, 1993.
- The revised credit is applied annually, equivalent to M1,020.00 per month.
Increase in lower tax bracket threshold – Second Schedule
- The threshold for the first income tax band increases from M74,040.00 to M77,760.00.
- This amends the Second Schedule to the Income Tax Act, 1993.
- The revised threshold determines the upper limit of income taxed at the lower rate.
Resident individual income tax rates – Second Schedule
- From 1 April 2026, resident individual tax rates apply as follows:
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- Taxable income up to M77,760.00 is taxed at 20%.
- Taxable income above M77,760.00 is taxed at M15,552.00 plus 30% of the amount exceeding M77,760.00.
- The fixed amount of M15,552.00 represents 20% of the lower tax bracket threshold.
Repeal of prior regulations
- The Income Tax (Amendment of Monetary Amounts) Regulations, 2025 is repealed.
- The 2026 Regulations replace the previous monetary values in full.
Additional information and resources
- Please refer to release note PSPDEV-31887, titled Annual amendments | Tax table updates 2026/2027.
- Click here to access the official publication
Should you have any questions regarding the Lesotho | Annual amendments 2026/2027, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected].
The Deel Local Payroll Team