The 2026 income tax threshold
Income tax (PAYE) only starts above a nil-rate threshold. For 2026 it is set in two parts of the year:
| Period | Nil-rate threshold (per year) |
|---|---|
| January – March 2026 | J$1,799,376 |
| From April 2026 | J$1,902,360 |
Pay up to the threshold is taxed at 0%. Brawta applies the right threshold for each pay date automatically.
The PAYE bands
| Band | Rate | Applies to |
|---|---|---|
| Nil rate | 0% | Statutory income up to the threshold |
| Standard | 25% | Statutory income above the threshold, up to J$6,000,000/yr |
| Higher | 30% | The portion of statutory income above J$6,000,000/yr |
How PAYE is calculated
NIS first
NIS is deducted from gross emoluments, up to the annual insurable ceiling (J$5,000,000/yr).
Find statutory (taxable) income
Take gross, subtract NIS, then subtract any allowable pension contribution. What's left is the statutory income PAYE is charged on.
Apply the threshold and bands
Tax the statutory income above the threshold at 25%, and the portion above J$6,000,000/yr at 30%.
Note that NHT is charged on gross, and Education Tax on statutory income (after NIS and pension) — they don't use the PAYE threshold. See the statutory deductions guide for each one.
Periodic vs cumulative PAYE
PAYE can be worked out period-by-period (periodic) or against the whole year to date (cumulative), which smooths out bonuses and uneven pay. Brawta supports both — see cumulative vs periodic PAYE.
Stop doing PAYE by hand.
Brawta applies the current threshold and bands for every pay date, in both periodic and cumulative modes — accurate to the cent, private on your own machine. Free to try.