This article provides a straightforward overview of individual income tax in Namibia for the 2025 tax year. You’ll find up-to-date income tax rates, how the system works, and essential practical insights for individual taxpayers considering Namibia as a residency or business location.
Individual Income Tax Framework in Namibia (2025)
Namibia employs a progressive income tax system where the rate increases as an individual’s income rises. The framework is based directly on an individual’s annual taxable income, and all figures are denominated in Namibian dollars (NAD).
Income Tax Brackets for Individuals
The table below details the official 2025 income tax brackets and rates in Namibia. All amounts are shown in Namibian dollars (NAD); approximate USD equivalents are provided in parentheses using an exchange rate of NAD 1 = USD 0.065.
| Taxable Income Bracket (NAD) | Taxable Income Bracket (USD) | Rate (%) |
|---|---|---|
| NAD 0 – NAD 100,000 | $0 – $6,500 | 0% |
| NAD 100,001 – NAD 150,000 | $6,501 – $9,750 | 18% |
| NAD 150,001 – NAD 350,000 | $9,751 – $22,750 | 25% |
| NAD 350,001 – NAD 550,000 | $22,751 – $35,750 | 28% |
| NAD 550,001 – NAD 850,000 | $35,751 – $55,250 | 30% |
| NAD 850,001 – NAD 1,550,000 | $55,251 – $100,750 | 32% |
| NAD 1,550,001 and above | $100,751 and above | 37% |
Namibia’s progressive system means that only the portion of income falling within each bracket is taxed at the corresponding rate. No surtaxes apply for the 2025 tax year, and rates are based strictly on declared income.
Assessment Basis and Applicability
Individual income tax in Namibia is determined solely on the basis of income earned within the tax year. Both residents and, where applicable, certain non-residents are subject to assessment, depending on their source of income and the country’s tax residency criteria.
Key Features of Namibia’s Progressive Tax Regime
- No tax on the first NAD 100,000 (about $6,500) of income, providing relief for lower-income earners.
- Steep progressive increases beyond NAD 1,550,000 ($100,751), peaking at a 37% marginal rate.
- No published surtaxes, special levies, or holding period requirements for 2025.
- Tax is assessed directly on annual income, with clear bracket boundaries and applicable rates.
Illustrative Example
Suppose you earn NAD 900,000 in annual taxable income (approximately $58,500 at the conversion rate used above). Your total tax liability is calculated by applying the relevant rates to each portion of your income, not a flat rate on the full amount, as follows:
- First NAD 100,000: 0%
- NAD 100,001 – NAD 150,000: 18%
- NAD 150,001 – NAD 350,000: 25%
- NAD 350,001 – NAD 550,000: 28%
- NAD 550,001 – NAD 850,000: 30%
- NAD 850,001 – NAD 900,000: 32%
Each tier applies only to income inside that range, with the total tax owed being the sum across all applicable brackets. This structure provides relief to lower incomes while ratcheting up liabilities as earnings increase.
Is There a Surtax or Extra Levy?
According to currently available data for 2025, Namibia imposes no additional surtaxes or temporary levies on individual income.
Are There Special Considerations?
No minimum or maximum holding period requirements exist for income tax in Namibia based on this year’s framework.
Pro Tips for Navigating Namibian Income Tax
- Monitor your income against brackets: Review projected totals annually to anticipate changes in marginal rate exposure—especially if nearing a new tax threshold.
- Keep accurate records: Meticulous documentation of your income sources and supporting statements will streamline your annual assessment and reduce audit risk.
- Take note of the exempt threshold: If your income is below NAD 100,000 (~$6,500), you currently owe no income tax in Namibia.
- Verify any residency requirements: Ensure your status is correctly declared if you earn income both from within and outside Namibia, as cross-border tax rules may also apply.
- Consult the official authority: For definitive guidance and application forms, visit the Namibia Ministry of Finance at mof.gov.na.
Practical Summary and Key Takeaways
Namibia’s progressive income tax framework means rates rise with income, but the first NAD 100,000 is completely exempt, which provides a degree of protection for low earners. Mid-to-high earners will find marginal rates escalate quickly, peaking at 37% for top incomes. No additional surcharges or complex holding requirements are specified in the 2025 regulations. For international professionals and business owners, careful income planning and ongoing documentation remain essential when considering Namibia as a tax resident.