Income Tax in Mauritius: Rates, Bands and How You're Taxed (2026)
Mauritius is known for its low, simple taxes — but “low tax” does not mean “no tax”. If you live in Mauritius, or are planning to move, here is exactly how personal income tax works: the current rates and bands, who counts as a tax resident, how foreign income is treated, and the taxes Mauritius does not charge at all.
Personal income tax rates and bands (2026/27)
Individuals are taxed on a progressive scale. Following the June 2026 National Budget, the rates for the income year running 1 July 2026 to 30 June 2027 are:
| Annual chargeable income (MUR) | Tax rate | Approx. USD* |
|---|---|---|
| First 500,000 | 0% | up to ~11,000 |
| 500,001 – 1,000,000 | 10% | ~11,000 – 22,000 |
| 1,000,001 – 12,000,000 | 20% | ~22,000 – 265,000 |
| Above 12,000,000 | 35% | above ~265,000 |
*USD figures are rough conversions at about MUR 45 to the dollar, for orientation only. The 35% top band was introduced in the 2026/27 budget, replacing the temporary “Fair Share Contribution” that applied the year before. The bands are cumulative, so a higher rate only ever applies to the slice of income within that band.
A worked example
Someone with MUR 1,500,000 of chargeable income pays nothing on the first 500,000, 10% on the next 500,000 (MUR 50,000), and 20% on the final 500,000 (MUR 100,000) — a total of MUR 150,000, or an effective rate of about 10%. Only income above MUR 12 million is exposed to the 35% band.
Who is a tax resident in Mauritius?
The Mauritian tax year runs from 1 July to 30 June. You are tax resident for a year if you are:
- physically present in Mauritius for 183 days or more in that income year; or
- present for 270 days or more across that year and the two preceding years; or
- domiciled in Mauritius (unless your permanent place of abode is elsewhere).
Residency is what determines how much of your income Mauritius can tax. Our guide to Mauritius tax residency rules explains the tests, and the day-counting, in more detail.
Foreign income and the remittance basis
This is the point international residents most often misunderstand. A Mauritian tax resident is taxed in full on Mauritius-source income. But foreign-source income — for example dividends from a UK company or rent from a French property — is only taxed if and when it is remitted to Mauritius. Income that is genuinely kept and used outside Mauritius generally falls outside the Mauritian net. This “remittance basis” is a large part of why the island is attractive to globally mobile individuals, and it works alongside Mauritius’s network of double-taxation treaties to prevent the same income being taxed twice.
What Mauritius does not tax
Several taxes that weigh heavily elsewhere simply do not exist here:
- No capital gains tax — gains on shares, property and other assets are not taxed.
- No inheritance, estate or gift tax — wealth can pass between generations without a death-tax charge.
- No wealth tax.
- No withholding tax on dividends, and dividends paid by a Mauritius-resident company are exempt in the shareholder’s hands.
For how companies are taxed — the 15% headline rate and the ~3% effective rate for Global Business Companies — see our guide to corporate tax in Mauritius.
Social contributions and payroll
Employees also pay the Contribution Sociale Généralisée (CSG). The employee rate is 1.5% (with the employer adding 3%) on monthly pay up to MUR 50,000, rising to 3% (employer 6%) above that. Employers deduct income tax monthly under PAYE and remit it to the Mauritius Revenue Authority; most employees settle up through an annual return.
How income tax fits into your move
Tax rarely sits on its own — it is tied to how you obtain the right to live here. Whether you come through the Occupation Permit, the retirement route, or residency by investment, the permit you hold and the days you spend on the island shape your tax position. As a British lawyer-led firm we plan the two together. Talk to our advisers about your circumstances before you commit.
What is the income tax rate in Mauritius?
For the 2026/27 income year, individuals pay 0% on the first MUR 500,000 of chargeable income, 10% from MUR 500,001 to 1,000,000, 20% from MUR 1,000,001 to 12,000,000, and 35% above MUR 12,000,000. The rates are progressive, so each rate applies only to income within its band.
Does Mauritius tax foreign income?
A Mauritian tax resident is taxed on Mauritius-source income in full. Foreign-source income is taxed only if it is remitted (brought in) to Mauritius; income kept abroad is generally not taxed. Double-taxation treaties provide further relief.
Is there capital gains tax in Mauritius?
No. Mauritius does not levy capital gains tax, and there is no inheritance, estate, gift or wealth tax.
When does the Mauritian tax year run?
From 1 July to 30 June. You are generally tax resident if you spend at least 183 days in Mauritius during that year (or 270 days across three years, or are domiciled there).
Sources & further reading
Figures are summarised for general guidance and were correct at the time of writing; tax rules change with each budget, so we confirm the current position for your circumstances before you act.
More insights
Related reading
What the UK–Mauritius treaty covers — residence tie-breakers, dividends, interest, pensions and gains — and how it helps people and businesses.
How UK nationals are taxed after moving to Mauritius — leaving UK residence, UK-source income, the treaty and the Mauritian remittance basis.
The 183-day and 270-day tests, the domicile rule, the remittance basis for foreign income, and how to obtain a Tax Residence Certificate — explained clearly.
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