The statutory deductions at a glance
Every Jamaican employer withholds these from pay and/or pays them as an employer contribution:
| Deduction | Employee | Employer | Charged on | Ceiling |
|---|---|---|---|---|
| PAYE (income tax) | 25% / 30% | — | Statutory income above the threshold | 30% band above J$6,000,000/yr |
| NIS | 3% | 3% | Gross emoluments | J$5,000,000/yr insurable |
| NHT | 2% | 3% | Gross emoluments | None |
| Education Tax | 2.25% | 3.5% | Statutory income (after NIS & pension) | None |
| HEART / NTA | — | 3% | Total gross wage bill | None |
The PAYE threshold & bands (2026)
Income tax (PAYE) only starts above a nil-rate threshold, which is set per year:
- Jan–Mar 2026: J$1,799,376 per year
- From Apr 2026: J$1,902,360 per year
- 2027 (announced): J$2,003,496 per year
Above the threshold, statutory income is taxed at 25%, then at 30% on the portion of statutory income above J$6,000,000 per year.
How PAYE is calculated (the order)
The sequence matters, because each step changes the base for the next:
- 1. NIS first — calculated on gross, up to the annual insurable ceiling.
- 2. Find taxable income — gross, less NIS, less any allowable pension contribution.
- 3. Apply the threshold — tax income above the threshold at 25% (and the higher band at 30%).
NHT is charged on gross. Education Tax is charged on the statutory income (after NIS and pension). Brawta supports both periodic and cumulative PAYE.
Age-based rules
Not every deduction applies at every age:
- Education Tax: ages 18–65 only (under-18 and over-65 are exempt).
- NIS: from age 18, until age 70.
- NHT: from age 18, until age 65.
- HEART: not age-restricted — all wages stay in the base.
- Seniors / pensioners: a Pension Exemption and an Age Exemption of J$250,040 each may apply (pensioner 55+, age 65+) for TAJ-approved employees.
Pension, redundancy & week 53
- Pension: employee contributions are tax-deductible up to 20% of pensionable emoluments; anything above that comes from after-tax pay.
- Redundancy / termination: the tax-free portion is 2¼ × average salary (last 3 years) × years of service ÷ 33⅓ (Redundancy Payments Order, 1971); any excess is taxed in the normal way.
- Week 53 / 27th fortnight: in that extra pay period no income-tax threshold is applied, but all other statutory deductions are still withheld.
The forms you file
| Form | What it is | When |
|---|---|---|
| S01 | Monthly statutory remittance (PAYE + contributions) | Generally by the 14th of the following month |
| S02 | Employer's Annual Return | Generally by 31 March |
| P45 | Issued to an employee who leaves | On separation |
Step-by-step guides & deep dives
Walkthroughs and explainers for the things people ask about most:
- How to file your S01 in Jamaica — the monthly remittance, due the 14th
- How to file your S02 in Jamaica — the annual return, due 31 March
- PAYE rates & income tax threshold 2026 — the bands, explained
- NIS, NHT, Education Tax & HEART — every rate, who pays
- Cumulative vs periodic PAYE — which to use and why
- Redundancy pay in Jamaica — the formula and the tax-free portion
- The P45 when an employee leaves
- Week 53 — the extra pay period and how it's taxed
- What happens if you file PAYE late? — penalties, interest & how to avoid them
Let Brawta do the maths.
Brawta applies every rule on this page automatically, fills your S01, S02 and P45, and keeps your data private on your own machine — free to try.