Mauritius moved to a progressive tax system as from 2023/2024. Even though we already had three rates at which income for individuals was being taxed, i.e., at 10%, 12.5% and 15%, taxpayers were only hit by the highest rate based on their monthly remuneration. This system also gave rise to an anomaly where individuals suffered a sudden relative increase in tax when moving salary bands. This incremental method was effective for the financial year 2024-2025 the with eleven different tax rates ranging from 0% to 20%. The tax bands have been reduced to only three for the financial year 2025-2026: 0% up to Rs 500,000 / 10% >Rs 500,000<Rs 1,000,000 / 20% >Rs 1,000,000). There is also an additional tax of 15% for taxable income above Rs.12,000,000. Calculations suggest that anyone earning taxable income above Rs.1,050,000 would be worse off under the system in force for the financial year 2025/26 as compared to 2024/2025.
The following link can be used to quickly calculate the personal tax liability of a person for the financial year 2025/2026 (with comparison of results relating to the financial year 2024-2025) and after until further amendment to the Act: https://eservices.mra.mu/taxcalculator/viewCalculate
Personal tax
Mauritius moved to a progressive tax system as from 2023/2024. Even though we already had three rates at which income for individuals was being taxed, i.e., at 10%, 12.5% and 15%, taxpayers were only hit by the highest rate based on their monthly remuneration. This system also gave rise to an anomaly where individuals suffered a sudden relative increase in tax when moving salary bands. This incremental method was effective for the financial year 2024-2025 the with eleven different tax rates ranging from 0% to 20%. The tax bands have been reduced to only three for the financial year 2025-2026: 0% up to Rs 500,000 / 10% >Rs 500,000<Rs 1,000,000 / 20% >Rs 1,000,000). There is also an additional tax of 15% for taxable income above Rs.12,000,000. Calculations suggest that anyone earning taxable income above Rs.1,050,000 would be worse off under the system in force for the financial year 2025/26 as compared to 2024/2025.
The following link can be used to quickly calculate the personal tax liability of a person for the financial year 2025/2026 (with comparison of results relating to the financial year 2024-2025) and after until further amendment to the Act: https://eservices.mra.mu/taxcalculator/viewCalculate