Tanzania, a vibrant East African nation known for its cultural diversity and natural beauty, offers a relatively affordable cost of living compared to Western countries, making it an appealing destination for residents and expatriates alike. However, for the average Tanzania earning a monthly net salary of 693,333.33 TSh (Tanzania Shillings), managing daily expenses can be challenging. According to recent data, the estimated monthly costs, excluding rent, are 1,240,012.40 TSh for a single person and 4,293,375.00 TSh for a family of four, representing 178.8% and 619.2% of the average salary, respectively. Rent further strains budgets, with a one-bedroom apartment outside city centers averaging 454,074.67 TSh (65.5% of the salary) and a three-bedroom apartment at 934,804.40 TSh (134.9% of the salary). While Tanzania’s cost of living is 54.1% lower than in the United States and rent is 80.6% lower, the disparity between local income and expenses highlights the need for careful budgeting, particularly for families. This introduction sets the stage for a detailed analysis of how key living costs—such as food, housing, transportation, and childcare—impact the financial realities of Tanzanias as of June 2025.

Cost of Living in Tanzania in Relation to Average Income

Understanding the cost of living in Tanzania, particularly in the context of the average monthly income, is essential for assessing the financial realities faced by Tanzanias. This analysis uses collected data to present a clear picture of living expenses across various categories, with a specific focus on how these costs align with the average monthly net salary of 693,333.33 TSh (Tanzania Shillings).

All figures are in TSh, and the analysis reflects conditions as of June 2025. The goal is to provide a realistic perspective on affordability for the average Tanzania, supported by detailed figures.

Overview of Cost of Living and Income

The cost of living in Tanzania is significantly lower than in the United States, with overall expenses 54.1% lower and rent 80.6% lower. The estimated monthly costs, excluding rent, are:

• Single Person: 1,240,012.4 TSh
• Family of Four: 4,293,375.0 TSh

However, the average monthly net salary (after tax) is 693,333.33 TSh, which poses challenges for covering these expenses, especially for single-income households or families. Below, we break down key cost categories and analyze their affordability relative to this income level.

1. Food and Dining Costs

Food expenses, including dining out and groceries, are a significant part of monthly budgets. Here’s how they compare to the average salary:

• Restaurants:
  • Inexpensive Meal: 6,500 TSh (range: 3,000–15,000 TSh)
  • Mid-range Restaurant (Three-Course Meal for Two): 50,000 TSh (range: 30,000–120,000 TSh)
  • Cappuccino: 4,969.82 TSh (range: 2,000–7,500 TSh)
  • Coke/Pepsi (0.33-liter): 944.12 TSh (range: 700–1,500 TSh)
• Markets:
  • Milk (1 liter): 2,442.11 TSh (range: 1,500–4,000 TSh)
  • Loaf of Bread (500g): 2,028.12 TSh (range: 1,000–3,500 TSh)
  • Rice (1kg): 2,700 TSh (range: 2,000–3,500 TSh)
  • Eggs (12): 5,336.47 TSh (range: 3,600–8,400 TSh)
  • Chicken Fillets (1kg): 13,400 TSh (range: 6,000–18,000 TSh)
  • Bananas (1kg): 2,408.33 TSh (range: 1,500–5,000 TSh)

Affordability Analysis:

• A single person eating out occasionally (e.g., 5 inexpensive meals per month) would spend 32,500 TSh (5 × 6,500). For groceries, a basic weekly shopping list (1kg rice, 1 liter milk, 12 eggs, 1kg bananas) costs approximately 12,886.91 TSh, or 51,547.64 TSh monthly.
• Total food cost for a single person: ~84,047.64 TSh (12.1% of the average salary).
• For a family of four, grocery costs could quadruple (e.g., 206,190.56 TSh), and occasional dining out (e.g., one mid-range meal for two adults monthly) adds 50,000 TSh, totaling ~256,190.56 TSh (36.9% of the average salary).
• Conclusion: Food is relatively affordable for singles, but families face a significant burden, consuming over a third of the average income.

2. Housing Costs (Rent)

Housing is one of the most affordable aspects of living in Tanzania compared to Western standards, but it remains a challenge relative to local income.

• 1-Bedroom Apartment in City Centre: 1,039,418.93 TSh (range: 300,000–2,685,704 TSh)
• 1-Bedroom Apartment Outside City Centre: 454,074.67 TSh (range: 250,000–1,000,000 TSh)
• 3-Bedroom Apartment in City Centre: 1,985,841.16 TSh (range: 537,140.80–4,834,267.20 TSh)
• 3-Bedroom Apartment Outside City Centre: 934,804.40 TSh (range: 300,000–2,685,704 TSh)

Affordability Analysis:

• A single person renting a 1-bedroom apartment outside the city centre spends 454,074.67 TSh, which is 65.5% of the average salary (693,333.33 TSh). Opting for the lower end of the range (250,000 TSh) reduces this to 36.1%.
• A family of four renting a 3-bedroom apartment outside the city centre spends 934,804.40 TSh, or 134.9% of the average salary, making it unaffordable for a single-income household. Even at the lower end (300,000 TSh), it’s 43.3% of the salary.
• Conclusion: Rent is a major expense, especially for families. Singles can manage with budget options, but families likely require dual incomes or cheaper housing options.

3. Transportation Costs

Transportation options include public transport, taxis, and personal vehicles, with costs varying by mode.

• One-way Ticket (Local Transport): 725 TSh (range: 600–2,000 TSh)
• Monthly Pass (Regular Price): 45,000 TSh (range: 21,739.13–52,000 TSh)
• Taxi Start (Normal Tariff): 3,750 TSh (range: 3,750–5,000 TSh)
• Taxi 1km (Normal Tariff): 4,000 TSh (range: 3,000–5,000 TSh)
• Gasoline (1 liter): 3,107.78 TSh (range: 2,900–3,300 TSh)

Affordability Analysis:

• A single person using public transport (monthly pass) spends 45,000 TSh, or 6.5% of the average salary. Alternatively, 20 one-way tickets monthly (e.g., for work) cost 14,500 TSh (20 × 725), or 2.1% of the salary.
• A family might rely on taxis for occasional trips. A 5km taxi ride costs 23,750 TSh (3,750 + 5 × 4,000). Two such trips weekly total 190,000 TSh monthly, or 27.4% of the salary.
• Conclusion: Public transport is highly affordable, but reliance on taxis significantly increases costs, especially for families.

4. Utilities and Connectivity

Utilities and communication are essential expenses that add to the monthly budget.

• Basic Utilities (85m² Apartment): 168,125 TSh (range: 63,750–300,000 TSh)
• Mobile Phone Plan (Calls + 10GB Data): 27,928.57 TSh (range: 10,000–50,000 TSh)
• Internet (60 Mbps, Unlimited Data): 98,222.22 TSh (range: 60,000–150,000 TSh)

Affordability Analysis:

• For a single person, basic utilities (at the lower end, 63,750 TSh) and a mobile plan (27,928.57 TSh) total 91,678.57 TSh, or 13.2% of the average salary. Adding internet (98,222.22 TSh) increases this to 189,900.79 TSh, or 27.4%.
• A family in an 85m² apartment might pay the average 168,125 TSh for utilities, plus two mobile plans (55,857.14 TSh) and internet (98,222.22 TSh), totaling 322,204.36 TSh, or 46.5% of the salary.
• Conclusion: Utilities are a significant expense, particularly for families, and can consume nearly half the average salary when including internet.

5. Other Essential Costs

Additional expenses like childcare, clothing, and leisure impact affordability, especially for families.

• Childcare:
  • Preschool (Monthly): 756,250 TSh (range: 375,000–1,300,000 TSh)
• Clothing:
  • 1 Pair of Jeans: 42,500 TSh (range: 20,000–60,000 TSh)
  • 1 Pair of Nike Shoes: 77,500 TSh (range: 45,000–100,000 TSh)
• Leisure:
  • Cinema (1 Seat): 12,000 TSh (range: 10,000–25,000 TSh)
  • Fitness Club (Monthly): 158,571.43 TSh (range: 55,000–250,000 TSh)

Affordability Analysis:

• A single person might spend 42,500 TSh on clothing annually (e.g., one pair of jeans) and 12,000 TSh monthly on leisure (e.g., one cinema visit), totaling 15,750 TSh monthly (assuming clothing is amortized over 12 months). This is 2.3% of the salary.
• A family with one child in preschool (756,250 TSh) faces a massive expense, equivalent to 109.1% of the average salary, making it unaffordable without additional income.
• Conclusion: Childcare is prohibitively expensive, while clothing and leisure are manageable for singles but add up for families.

Budget Scenarios Relative to Average Salary

Single Person

• Food: 84,047.64 TSh (groceries + occasional dining)
• Rent (1-Bedroom, Outside City Centre): 454,074.67 TSh (average) or 250,000 TSh (low-end)
• Transportation (Monthly Pass): 45,000 TSh
• Utilities (Basic + Mobile): 91,678.57 TSh
• Total (Average Rent): 674,800.21 TSh (~97.4% of 693,333.33 TSh)
• Total (Low-end Rent): 470,726.21 TSh (~67.9% of salary)

Analysis: A single person can live modestly within the average salary by choosing low-end rent and minimizing discretionary spending (e.g., avoiding internet or frequent dining). However, there’s little room for savings or unexpected expenses.

Family of Four (Single Income)

• Food: 256,190.56 TSh
• Rent (3-Bedroom, Outside City Centre): 934,804.40 TSh (average) or 300,000 TSh (low-end)
• Transportation (Two Monthly Passes): 90,000 TSh
• Utilities (Basic + Two Mobile Plans + Internet): 322,204.36 TSh
• Childcare (One Child in Preschool): 756,250 TSh
• Total (Average Rent): 2,359,449.36 TSh (340.3% of salary)
• Total (Low-end Rent): 1,724,644.96 TSh (248.8% of salary)

Analysis: A single income of 693,333.33 TSh is insufficient for a family of four, especially with childcare costs. Dual incomes or significantly reduced expenses (e.g., no preschool, cheaper housing) are necessary.

Key Insights and Challenges

1. Low Income Relative to Costs: The average salary (693,333.33 TSh) barely covers the estimated monthly costs for a single person (1,240,012.4 TSh, excluding rent) and is far inadequate for a family of four (4,293,375 TSh, excluding rent). This highlights a significant affordability gap.
2. Housing and Childcare as Major Burdens: Rent and childcare are the largest expenses. For families, preschool costs alone can exceed the average salary, making quality education inaccessible for many.
3. Affordable Basics: Food (especially groceries) and public transportation are relatively affordable, allowing budget-conscious individuals to manage these costs within the average salary.
4. Need for Multiple Incomes: Families relying on a single income face severe financial strain. Dual incomes or informal income sources (e.g., small businesses) are likely common among Tanzanias to bridge the gap.
5. Limited Savings Potential: With basic expenses consuming most of the average salary, saving for emergencies, education, or homeownership (with high mortgage rates of 14.6%) is challenging.

Conclusion

The cost of living in Tanzania is low compared to Western standards, but the average monthly net salary of 693,333.33 TSh makes it difficult for many Tanzanias to afford a comfortable lifestyle, especially for families. Singles can manage by opting for budget housing, public transport, and minimal discretionary spending, but families face significant challenges, particularly with childcare and rent. To improve financial stability, Tanzanias may need to pursue higher-paying jobs, multiple income streams, or cost-saving strategies like living in less expensive areas or relying on local markets. This analysis underscores the importance of aligning expenses with income and highlights the economic realities faced by the average Tanzania.

Key Cost of Living Figures in Tanzania Relative to Average Salary

Below is a table summarizing key cost of living figures in Tanzania, with a focus on their affordability relative to the average monthly net salary of 693,333.33 TSh (Tanzania Shillings). The table includes average costs, ranges, and the percentage of the average salary each item represents, providing a clear picture of financial realities for Tanzanias as of June 2025.

Notes:

• Costs are in Tanzania Shillings (TSh) and reflect averages and ranges from the provided document.
• The percentage of average salary is calculated as (Average Cost ÷ 693,333.33) × 100.
• Key insights:
  • The monthly cost for a single person (excl. rent) exceeds the average salary by 78.8%, and for a family of four, it’s over 6 times the salary.
  • Rent and childcare are particularly burdensome, with preschool costs alone exceeding the average salary.
  • Affordable categories include public transport (e.g., 0.1% per one-way ticket) and basic groceries (e.g., 0.3–0.4% per kg of rice or bananas).
• Data reflects conditions as of June 2025.