In view of the worldwide importance of Toxoplasma gondii and the fragmented information on the seroprevalence of the disease in animals in Tanzania, a study, using the modified Eiken latex agglutination test (LAT), was conducted from May 2003 to January 2004 to determine the prevalence of antibody to T. gondii in 130 randomly selected farms comprising 655 cattle. The overall seroprevalence of T.gondii antibodies in cattle and farms were 3.6% and 13%, respectively. Risk factors for animal and herd-level toxoplasmosis seropositivity were tested using multivariable logistic regression to control for confounding factors. Cattle managed under traditional husbandry practises were more likely to be seropositive than those managed under smallholder practises (48% versus 4.7%; p < 0.01). Herd size of > or = 9 cattle were at greater risk of acquiring infection than herds holding fewer animals [< or = 9 cattle], (odd ratio [OR] = 3.99; 95% confidence interval [CI], 0.97-16.48; P = 0.001). We concluded that seroprevalence at herd level was high and relatively low at animal level, possibly due to the reduced susceptibility of cattle to T.gondii infection as compared to goats and sheep. The high seroprevalence in animals managed by traditional husbandry practise suggests that the parasite is widely distributed in the environment and could pose a public health threat to the people living in those areas.