How do I calculate PAYE in Jamaica for 2026?

To calculate PAYE in Jamaica for 2026: (1) Determine annual gross salary. (2) Subtract the income tax threshold of JMD $1,902,360 per year (JMD $158,530/month). (3) Apply 25% tax on the first JMD $4,097,640 above the threshold, then 30% on any excess. (4) Divide by 12 for the monthly PAYE amount. Use our free Jamaica payroll calculator to compute this instantly.

How to calculate NIS Jamaica

To calculate NIS in Jamaica, multiply gross pay by 3% for the employee contribution and 3% for the employer contribution. The annual wage ceiling is J$5,000,000, so the maximum employee NIS is J$150,000/year (J$12,500/month).

How much is NHT in Jamaica?

NHT (National Housing Trust) is 2% of gross salary for employees and 3% for employers. There is no ceiling on NHT. Employees can reclaim contributions after 7 years if not used for housing.

What are all statutory deductions for payroll in Jamaica?

Jamaica payroll statutory deductions are: PAYE income tax (25–30% above threshold), NIS (3% employee + 3% employer, ceiling JMD $5M/year), NHT (2% employee + 3% employer, no ceiling), and Education Tax (2.25% employee + 3.5% employer, no ceiling). Use our free calculator to compute all deductions instantly.

Jamaica Payroll Calculator

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PAYE Threshold Jamaica 2026

The PAYE income tax threshold in Jamaica for 2026 is J$1,902,360 per year (J$158,530 per month). Employees earning below this threshold pay zero PAYE income tax. Income above the threshold is taxed at 25% up to J$6,000,000 and 30% on any excess, as set by Tax Administration Jamaica (TAJ).

How to Calculate NIS in Jamaica

NIS (National Insurance Scheme) is calculated at 3% of gross pay for the employee and 3% for the employer, subject to an annual wage ceiling of J$5,000,000 per year. The maximum employee NIS contribution is J$150,000 annually (J$12,500/month). NIS is deducted before PAYE is calculated, reducing taxable income.

What is NHT and who pays it?

NHT (National Housing Trust) helps Jamaican employees access affordable housing. Employees contribute 2% of gross salary with no ceiling, while employers contribute 3%. NHT contributions can be reclaimed after seven years if not used for housing.

What is Education Tax in Jamaica?

Education Tax funds Jamaica's public education system. Employees pay 2.25% and employers pay 3.5% of gross salary, with no ceiling. It is remitted quarterly to TAJ alongside NIS and NHT contributions.

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