If you earn a salary, run a side hustle, or take a drawing from your own company, the question is always the same: how much of this do I actually keep? The 2025-2026 Budget reshaped the personal income tax system in Mauritius, and the rules that apply to the income year 1 July 2025 to 30 June 2026 are simpler than before — but different enough that the old calculations you may have memorised no longer give the right answer.
This guide breaks down the current bands, shows worked examples at every income level, and explains exactly what changed.
The 2026 income tax bands at a glance
For the income year starting 1 July 2025, individuals are taxed on a progressive scale:
| Chargeable Income (Rs) | Tax Rate | Tax on this band |
|---|---|---|
| First 500,000 | 0% | Rs 0 |
| Next 500,000 (500,001 – 1,000,000) | 10% | up to Rs 50,000 |
| Remainder (above 1,000,000) | 20% | 20% of the excess |
On top of this, a Fair Share Contribution of 15% applies to very high earners — individuals whose net income (including domestic dividends) exceeds Rs 12 million a year pay an additional 15% on the portion above Rs 12 million. This applies for income years from 1 July 2025 through 2027.
"Chargeable income" is not the same as your gross salary. It is what remains after deducting allowable reliefs and exemptions (such as the Income Exemption Threshold for dependents, pension contributions, and approved deductions). The bands above apply to that final figure.
What changed from last year
If you read older guides — including some still circulating online — you will see bands of 0% / 10% / 15% with thresholds at Rs 390,000 and Rs 750,000. Those were the pre-Budget figures. The 2025-2026 Budget:
- Raised the tax-free threshold from Rs 390,000 to Rs 500,000 of chargeable income.
- Widened the 10% band so it now covers income up to Rs 1,000,000 (previously the top rate kicked in at Rs 750,000).
- Replaced the old 15% top rate with 20% on income above Rs 1,000,000.
- Introduced the 15% Fair Share Contribution on income above Rs 12 million.
The net effect: lower-and-middle earners generally pay less tax than before, while high earners pay more.
Worked examples
Example 1 — Earner with Rs 480,000 chargeable income
Everything falls inside the 0% band.
- Tax due: Rs 0
Example 2 — Earner with Rs 700,000 chargeable income
- First Rs 500,000 → 0% = Rs 0
- Next Rs 200,000 → 10% = Rs 20,000
- Tax due: Rs 20,000 (effective rate 2.9%)
Example 3 — Earner with Rs 1,200,000 chargeable income
- First Rs 500,000 → 0% = Rs 0
- Next Rs 500,000 → 10% = Rs 50,000
- Remaining Rs 200,000 → 20% = Rs 40,000
- Tax due: Rs 90,000 (effective rate 7.5%)
Example 4 — Earner with Rs 3,000,000 chargeable income
- First Rs 500,000 → 0% = Rs 0
- Next Rs 500,000 → 10% = Rs 50,000
- Remaining Rs 2,000,000 → 20% = Rs 400,000
- Tax due: Rs 450,000 (effective rate 15%)
Example 5 — Earner with Rs 14,000,000 net income
- Standard bands on the first Rs 12,000,000 as above, plus
- Fair Share Contribution: 15% × (Rs 14,000,000 − Rs 12,000,000) = Rs 300,000 on top.
Individuals vs companies — don't confuse the two
These bands apply to individuals: employees, sole traders, freelancers, and partners. Companies are taxed differently — most pay a flat corporate rate, with sector-specific reliefs. If you are weighing how to structure your income, see our breakdown of corporate vs personal tax in Mauritius and the sole trader vs company comparison.
If you are self-employed, the way you report and pay (including the Current Payment System instalments) is covered in our self-employed tax guide.
When and how you pay
- Employees have tax withheld monthly under PAYE by their employer.
- Self-employed individuals pay through the CPS (Current Payment System) in quarterly instalments and file an annual return.
- The annual individual income tax return is filed with the MRA after the income year closes. For exact dates, see our tax filing deadlines guide and the business compliance calendar.
FAQ
Is the Rs 500,000 threshold per person or per household?
Per individual. Each taxpayer files on their own chargeable income. Additional exemptions apply if you have dependents.
Does the 0% band mean I don't need to file?
Not necessarily. Many people below the threshold are still required to file a return to declare income and claim exemptions. Filing also creates the clean record you'll need for loans, visas, and tenders.
I run a one-person company and pay myself a salary — which rules apply?
Your salary is taxed under these individual bands via PAYE; the company itself is taxed separately on its profits. Getting the salary-vs-dividend mix right is exactly the kind of question an accountant earns their fee on.
Where do these income tax numbers come from?
They reflect the measures enacted following the 2025-2026 Budget, effective for the income year 1 July 2025 – 30 June 2026. Always confirm your specific situation against current MRA guidance, as reliefs and thresholds can change with each Budget.
Get it right the first time
Tax bands are the easy part — the savings live in how you structure income, what you can legitimately deduct, and filing on time. Browse accountants in our directory who handle this every day, or if you're just getting started, see how we help you register your company for Rs 5,000.