East & Southern Africa

Botswana: tax at a glance

This is a source-based tax system. Reforms in July 2026 lifted the top personal rate to 27.5% and the corporate rate to 24.5%, with VAT at 14% and no social security.

Territorial Last verified July 2026

The taxes

Personal income (top)
27.5%
Corporate income
24.5%
Capital gains
Gains are taxed as income, indexed, up to 27.5% for individuals and 24.5% for companies.
VAT
14%
Dividends (WHT)
10%
Interest (WHT)
15%
Royalties (WHT)
15%
Social security (employee)
None
Social security (employer)
None
Wealth tax
None
Inheritance / estate
A Capital Transfer Tax applies to gifts and inheritances, up to roughly 5% for individuals and 12.5% for companies.
Property tax
Transfer duty runs 5%, rising to 30% for non-citizens, plus local rates.
Other
A training levy of 0.05%-0.2% applies on turnover.

How the system works

Tax system
Territorial
Foreign income
Largely outside scope (territorial)
Taxes by citizenship
No
Exit tax
No
CFC rules
No
CRS
Not participating

The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.

Frequently asked

What is the income tax rate in Botswana?

The top marginal personal income tax rate in Botswana is 27.5%. Rates are progressive. A new top band above BWP 400,000 takes effect from 1 Jul 2026, up from 25% previously.

What is the corporate tax rate in Botswana?

The headline corporate income tax rate is 24.5%.

Does Botswana tax capital gains?

Capital gains for individuals: Gains are taxed as income, indexed, up to 27.5% for individuals and 24.5% for companies..