Tax Rates
MRA Tax Rates and Brackets in Mauritius (2025): A Complete Guide
Understand the 2025 MRA tax rates and brackets and how they affect employees and the self-employed.
Understanding MRA Tax Rates and Brackets in Mauritius (2025/2026)
Filing your income tax in Mauritius requires a clear understanding of the Mauritius Revenue Authority (MRA) tax rates and brackets. These rates determine how much you owe based on your income and play a crucial role in financial planning. This guide will help you navigate the tax brackets for 2025, compare them with previous years, and understand their impact on employees and self-employed individuals.
1. What Are Tax Brackets and Why Do They Matter?
Tax brackets categorize income ranges to determine the percentage of tax applicable to each range. In Mauritius, the MRA implements a progressive tax system, meaning higher income earners pay a larger percentage of their earnings in taxes.
Understanding these brackets helps you:
- Estimate your tax liability accurately.
- Plan for deductions and reliefs available under the law.
- Avoid underpayment penalties from the MRA.
2. MRA Tax Rates and Brackets for 2025/2026
The MRA tax rates for the income year starting 1 July 2025 offer a simplified progressive structure, making income tax filing more manageable for most individuals in Mauritius. Tax rates applicable to individuals and companies differ significantly.
2025 Tax Rates — Income Year starting 1 July 2025
| Yearly Bracket | Rate | Monthly Bracket | Rate |
|---|---|---|---|
| First Rs 500,000 | 0% | First Rs 38,462 | 0% |
| Next Rs 500,000 | 15% | Next Rs 38,462 | 15% |
| Remainder | 20% | Above Rs 76,924 | 20% |
Key Takeaway: The tax-free threshold increases from Rs 390,000 to Rs 500,000, and the entire system is simplified from 11 brackets to just 3. Many middle-income earners will pay significantly less tax from 1 July 2025.
2.1 Tax Brackets for 2024/2025 (Previous System)
For reference, the annual chargeable income of an individual under the previous system was taxed progressively across 11 brackets:
| Yearly Bracket | Rate | Monthly Bracket | Rate |
|---|---|---|---|
| First Rs 390,000 | 0% | First Rs 30,000 | 0% |
| Next Rs 40,000 | 2% | Next Rs 3,077 | 2% |
| Next Rs 40,000 | 4% | Next Rs 3,077 | 4% |
| Next Rs 60,000 | 6% | Next Rs 3,077 | 6% |
| Next Rs 60,000 | 8% | Next Rs 4,615 | 8% |
| Next Rs 300,000 | 10% | Next Rs 23,077 | 10% |
| Next Rs 300,000 | 12% | Next Rs 23,077 | 12% |
| Next Rs 300,000 | 14% | Next Rs 23,077 | 14% |
| Next Rs 500,000 | 16% | Next Rs 30,769 | 16% |
| Next Rs 400,000 | 18% | Next Rs 38,462 | 18% |
| Remainder | 20% | Remainder | 20% |
3. Impact of Tax Brackets on Employees
For employees, taxes are deducted at source through the Pay-As-You-Earn (PAYE) system. Employers calculate the applicable tax based on the employee's gross income, ensuring compliance with MRA guidelines.
Example Tax Calculation Based on 2025/2026 Rates
If your annual salary is MUR 1,200,000:
| Income Bracket | Taxable Income | Rate | Tax (Rs) |
|---|---|---|---|
| First MUR 500,000 | 500,000 | 0% | — |
| Next MUR 500,000 | 500,000 | 15% | 75,000 |
| Remainder | 200,000 | 20% | 40,000 |
| Total | 1,200,000 | 115,000 |
Example Tax Calculation Based on 2024/2025 Rates
If your annual salary is MUR 1,200,000 under the previous system:
| Income Bracket | Taxable Income | Rate | Tax (Rs) |
|---|---|---|---|
| First MUR 390,000 | 390,000 | 0% | — |
| Next MUR 40,000 | 40,000 | 2% | 800 |
| Next MUR 40,000 | 40,000 | 4% | 1,600 |
| Next MUR 60,000 | 60,000 | 6% | 3,600 |
| Next MUR 60,000 | 60,000 | 8% | 4,800 |
| Next MUR 300,000 | 300,000 | 10% | 30,000 |
| Next MUR 300,000 | 300,000 | 12% | 36,000 |
| Next MUR 300,000 | 10,000 | 14% | 1,400 |
| Total | 1,200,000 | 78,200 |
Key Takeaway: Under the new 2025/2026 rates, the same salary of Rs 1,200,000 results in a higher headline tax bill in this illustration — but middle-income earners below Rs 1M benefit substantially from the raised threshold. To see how rates interact with deductions and reliefs, refer to our comprehensive income tax guide for individuals.
4. Tax Brackets for Self-Employed Individuals
Self-employed individuals must calculate their taxes independently and file returns through the MRA portal. Understanding tax brackets helps you:
- Plan CPS (Current Payment System) quarterly payments accurately.
- Avoid penalties for underpayment or late filing.
- Model different revenue scenarios before the end of the income year.
5. Comparison with Previous Years
Changes in tax rates and thresholds can significantly affect taxpayers. Here's a comparison of the 2025 tax rates with the past several years:
| Income Year | Income Threshold for 10% | Income Threshold for 15% / 20% |
|---|---|---|
| 2020 | 650,000 | Above 650,000 |
| 2021 | 675,000 | Above 675,000 |
| 2022 | 700,000 | Above 700,000 |
| 2023 | 700,000 | Above 700,000 |
| 2024 | Progressive 0%–20% (11 brackets) | See table above |
| 2025 | Above Rs 500,000 → 15% | Above Rs 1,000,000 → 20% |
Pro Tip: For a full breakdown of all aspects of individual income tax in Mauritius — including deductions, reliefs, CPS and CSG — check out our comprehensive guide.