What Is the AIDS Levy?
The AIDS levy is an additional tax charged in Zimbabwe at a rate of 3% on the income tax payable by every taxpayer. It was introduced under the National AIDS Council of Zimbabwe Act to fund the national HIV/AIDS response, including treatment, prevention, and support programmes.
The levy applies to all categories of taxpayers — individuals, companies, trusts, and non-resident taxpayers with Zimbabwe-sourced income. It is collected by ZIMRA alongside income tax and remitted to the National AIDS Council.
AIDS Levy Rate 2026
| Taxpayer Category | AIDS Levy Rate | Basis |
|---|---|---|
| Individuals (PAYE employees) | 3% | Of income tax / PAYE payable |
| Companies (corporate tax) | 3% | Of corporate income tax payable |
| Trusts | 3% | Of income tax payable by trust |
| Non-residents | 3% | Of withholding tax on Zimbabwe income |
How AIDS Levy Is Calculated
For PAYE Employees
The employer calculates AIDS levy as part of the monthly payroll process:
- Calculate gross taxable income (salary + benefits - pension contributions)
- Apply the income tax tables to determine PAYE
- Multiply PAYE by 3% to get the AIDS levy
- Total deduction = PAYE + AIDS levy
Calculation Example (Monthly, USD)
| Item | Amount (USD) |
|---|---|
| Gross monthly salary | $2,000 |
| Pension contribution (deductible) | -$100 |
| Taxable income | $1,900 |
| PAYE (from tax tables) | $285.00 |
| AIDS levy (3% of $285) | $8.55 |
| Total tax deduction | $293.55 |
For Companies
Companies calculate AIDS levy on their annual corporate tax liability:
- Calculate taxable profit for the year
- Apply the corporate tax rate (24% standard)
- Add 3% of corporate tax as AIDS levy
- Effective rate: 24% + (24% × 3%) = 24.72%
Who Is Exempt from AIDS Levy?
There are limited exemptions from the AIDS levy:
- Taxpayers below the tax-free threshold — If you earn below the tax-free threshold and pay no income tax, no AIDS levy is due
- Entities exempt from income tax — If your organisation is exempt from income tax (e.g., registered charities, certain non-profits), the AIDS levy does not apply
- Presumptive tax payers — Those paying presumptive tax pay a simplified tax that already includes the equivalent levy component
How AIDS Levy Is Collected
- Employees: Deducted by employers as part of PAYE and remitted to ZIMRA monthly
- Companies: Included in quarterly provisional tax payments (QPDs) and final annual tax return
- Non-residents: Deducted at source as part of withholding tax
AIDS Levy on Your Payslip
The AIDS levy may appear on your payslip as a separate line item or combined with PAYE. Common labels include:
- “AIDS Levy” — shown separately
- “PAYE + AIDS Levy” — shown as combined amount
- “Total Tax” — PAYE and AIDS levy combined
If you want to see the breakdown, ask your payroll department. Use our income tax calculator to verify the amounts.
History and Purpose
The AIDS levy was introduced in 1999 as part of Zimbabwe’s response to the HIV/AIDS epidemic. The funds are administered by the National AIDS Council (NAC) and are used for:
- Antiretroviral (ARV) treatment programmes
- Prevention and awareness campaigns
- Support for orphans and vulnerable children (OVC)
- Research and monitoring
- Community-based care and support
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