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Mauritius Personal Income Tax Guide 2026

Mauritius applies a flat personal income tax (IIT) rate of 15% on chargeable income. The system includes a MUR 390,000 personal allowance, a reduced 10% rate for pensioners, and a MUR 50,000 Child Credit Scheme (CSG) per dependent child. Tax residents are taxed on worldwide income.

Overview — Mauritius Revenue Authority (MRA)

The Mauritius Revenue Authority (MRA) administers all national taxes in Mauritius. The tax year runs from 1 July to 30 June. Individual taxpayers must file an annual return (Form 1) by 30 September following the end of the tax year. Mauritius operates a self-assessment system where taxpayers declare their income and calculate tax due. The MRA has a fully digital platform (e-Services) for filing and payments.

Tax residents are taxed on worldwide income at the flat 15% rate. Non-residents are taxed only on Mauritian-source income at the same flat rate but are not entitled to the personal allowance.

Flat Rate — 15% on Chargeable Income

Mauritius introduced a flat personal income tax rate of 15% in 2009, replacing the former progressive system. All individuals pay the same marginal rate, making Mauritius one of the simplest personal tax regimes globally. Chargeable income is calculated as:

  • Gross income — employment income, business profits, investment income, rental income, and other sources
  • Less: Allowable deductions — retirement fund contributions, insurance premiums (limited), approved savings schemes
  • Less: Personal allowance — MUR 390,000
  • Equals: Chargeable income — taxed at 15%

Employment income is subject to Pay As You Earn (PAYE) withholding by employers. Self-employed individuals pay quarterly advance instalments based on the prior year's tax liability.

Personal Allowance — MUR 390,000

Every individual resident taxpayer is entitled to a personal allowance of MUR 390,000 per year. This means the first MUR 390,000 of income is tax-free. Effectively, an individual earning up to MUR 390,000 per year pays no income tax. The allowance is automatically applied — no separate claim is needed. Non-residents are not entitled to the personal allowance and are taxed on gross Mauritian-source income at 15%.

Pensioner Rate — 10%

Individuals aged 60 and above benefit from a reduced flat IIT rate of 10% (instead of the standard 15%). This applies to all chargeable income of qualifying pensioners. The personal allowance of MUR 390,000 is also available, meaning a pensioner with income up to MUR 390,000 pays no tax, and income above that threshold is taxed at 10% rather than 15%.

Child Credit Scheme (CSG) — MUR 50,000

Mauritius offers a Child Credit Scheme providing a tax credit of MUR 50,000 per dependent child under the age of 18 (or up to 24 if in full-time education). The credit is deducted from the tax liability (not the income). For a parent with one child, the tax credit reduces the final tax bill by MUR 50,000 (equivalent to saving tax on approximately MUR 333,333 of income at the 15% rate). Both parents may claim the credit for different children, or share the credit for the same child.

Allowable Deductions

Several deductions are available to reduce gross income before applying the personal allowance:

  • Retirement fund contributions: Contributions to approved pension or retirement funds (e.g., National Pension Fund) are deductible up to certain limits
  • Life insurance premiums: Deductible up to MUR 60,000 per year
  • Medical insurance: Premiums for approved health insurance schemes
  • Approved savings schemes: Contributions to the National Savings Fund or other approved savings plans
  • Home ownership savings: Contributions to a Home Ownership Savings Account (up to MUR 30,000 per year)

Filing Requirements

All resident individuals with chargeable income exceeding MUR 390,000 must file an annual tax return (Form 1) by 30 September. Employees with PAYE withholding may still need to file if they have additional income sources (rental, investment, business). The return is filed electronically via the MRA e-Services portal. Late filing penalties apply: MUR 2,500 per month for failure to file, plus interest at 0.5% per month on unpaid tax.

FAQs

Is the 15% flat rate really flat — no brackets at all?

Yes, Mauritius has a genuinely flat 15% rate. There are no progressive brackets. Every rupee of chargeable income above the personal allowance is taxed at exactly 15% (or 10% for pensioners). This makes the Mauritian system one of the simplest in the world.

Do I pay tax on foreign income as a Mauritius resident?

Yes, tax residents are taxed on worldwide income. However, foreign-source income may be eligible for relief under the Foreign Tax Credit (FTC) system to avoid double taxation. Assess income is credited against Mauritian tax on the same income.

Are capital gains taxable for individuals?

No, Mauritius has no capital gains tax (0% CGT). Gains from the sale of shares, property, or other assets are not subject to IIT for individuals, unless the taxpayer is considered to be trading (in which case it may be treated as business income).

Disclaimer

This guide provides general information about Mauritian personal income tax (IIT) for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Mauritian tax advisor or the MRA directly for advice specific to your situation. InvestmentKit does not provide tax advice.

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