Terahertz (THz) tomography is a rather novel technique for nondestructive testing that is particularly suited for the testing of plastics and ceramics. Previous publications showed a large variety of conventional algorithms adapted from computed tomography or ultrasound tomography which were directly applied to THz tomography. Conventional algorithms neglect the specific nature of THz radiation, i. e. refraction at interfaces, reflection losses and the beam profile (Gaussian beam), which results in poor reconstructions. The aim is the efficient reconstruction of the complex refractive index, since it indicates inhomogeneities in the material. A hybrid algorithm has been developed based on the algebraic reconstruction technique (ART). ART is adapted by including refraction (Snell's law) and reflection losses (Fresnel equations). Our method uses a priori information about the interface and layer geometry of the sample. This results in the "Modified ART for THz tomography", which reconstructs simultaneously the complex refractive index from transmission coefficient and travel time measurements.