Sierra Leone Personal Income Tax Guide 2026

Overview — National Revenue Authority (NRA)

The National Revenue Authority (NRA) administers all domestic tax collection in Sierra Leone including personal income tax, corporate tax, GST, and other levies. Tax residents are taxed on worldwide income; non-residents are taxed only on Sierra Leone-source income. Residency is determined by physical presence of 183 days or more in a calendar year, or having a permanent home in Sierra Leone. Employees have tax withheld at source under PAYE. Self-employed individuals and business owners file annual returns directly with NRA. The currency is the Sierra Leonean Leone (SLL).

PAYE Tax Brackets 2026 — Annual Rates

Sierra Leone uses a progressive annual bracket system with 5 bands and a top marginal rate of 30%. For 2026, the annual PAYE brackets are:

• 0% — on income up to SLL 6,000,000
• 15% — on income from SLL 6,000,001 to 12,000,000
• 20% — on income from SLL 12,000,001 to 18,000,000
• 25% — on income from SLL 18,000,001 to 30,000,000
• 30% — on income above SLL 30,000,000

Effective tax rates are modest due to the SLL 6,000,000 tax-free threshold. A taxpayer earning SLL 60,000,000/year pays approximately SLL 11,700,000 in PAYE — an effective rate of ~19.5%. The annual tax-free amount is SLL 6,000,000.

PAYE Withholding

Employers must register for PAYE with NRA and deduct tax monthly from employee salaries. The employer calculates monthly tax on gross salary, deducts NASSIT employee contribution (5%), and remits the net tax to NRA by the 15th of the following month. Employers file monthly PAYE returns via NRA's online portal. Employees receive annual tax deduction summaries for their records. Failure to remit PAYE attracts penalties and interest on the overdue amount.

Self-Employed Individuals

Self-employed individuals and sole proprietors are taxed under the same progressive rates as employees, but must file self-assessment returns. Estimated tax is payable in quarterly instalments. The annual return must be filed by 30 April of the following year. Self-employed individuals can deduct allowable business expenses (rent, utilities, raw materials, salaries) to arrive at taxable profit. Proper books of account must be maintained.

FAQs

Do I need to file a return if I pay PAYE through my employer?

Yes, all resident individuals must file an annual income tax return with NRA by 30 April, even if all tax was withheld at source. The process is simplified for PAYE-only employees.

Is overtime pay taxable?

Yes, all remuneration including basic salary, overtime, bonuses, commissions, and allowances are taxable as employment income.

What happens if my employer does not remit PAYE?

The employer is liable for the unpaid tax plus penalties. Employees should verify their tax compliance through NRA's portal.

Disclaimer

This guide provides general information about Sierra Leone personal income tax for the 2026 tax year. Tax laws, rates, and regulations may change. Always consult with a qualified Sierra Leone tax advisor or the National Revenue Authority for advice specific to your situation. InvestmentKit does not provide tax advice.