PAYE Calculator Jamaica 2026
Calculate Pay As You Earn (PAYE) income tax deductions for any Jamaican salary. Free, accurate, and updated to reflect TAJ's 2026 rates.
Jamaica Payroll Calculator
Calculate PAYE, NIS, NHT, Education Tax and HEART levy instantly — free, no signup required. Updated for current Jamaica tax rates.
What Is the PAYE Threshold in Jamaica for 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).
| Period | PAYE threshold amount |
|---|---|
| Annual | J$1,902,360 |
| Monthly | J$158,530 |
| Fortnightly | J$57,696 |
| Weekly | J$28,848 |
What is PAYE in Jamaica?
PAYE — Pay As You Earn — is Jamaica's system for withholding income tax from employee salaries at the source. Instead of employees paying a lump-sum tax bill annually, employers deduct PAYE each pay period and remit it directly to Tax Administration Jamaica (TAJ). This ensures the government collects income tax in real time throughout the year.
All employers registered with TAJ are legally required to deduct and remit PAYE on behalf of their employees. Failure to do so results in interest charges, penalties, and potential TAJ audit action.
Jamaica PAYE rates for 2026
| Annual income band | PAYE rate | Notes |
|---|---|---|
| Up to JMD $1,902,360/year | 0% | Below income tax threshold — no PAYE due |
| JMD $1,500,097 – $6,000,000/year | 25% | Standard rate on income above threshold |
| Above JMD $6,000,000/year | 30% | Higher rate for high earners |
The income tax threshold of JMD $1,902,360 per year (JMD $158,530/month) applies from April 2026. Salaries below this threshold attract zero PAYE.
How to calculate PAYE in Jamaica — step by step
- Start with gross annual salary. Multiply monthly gross by 12 (or weekly by 52, fortnightly by 26).
- Subtract NIS employee contribution. NIS (3% of gross, up to a JMD $5,000,000 ceiling) is deducted before PAYE is calculated.
- Subtract the income tax threshold. Deduct JMD $1,902,360 from the NIS-adjusted income to get taxable income.
- Apply the PAYE rates. 25% on taxable income up to JMD $4,097,640; 30% on any balance above that.
- Divide by pay periods. Divide annual PAYE by 12 for monthly, 26 for fortnightly, or 52 for weekly payroll.
Use our free Jamaica payroll calculator above to compute PAYE instantly for any salary amount.
PAYE remittance deadlines in Jamaica
Employers must remit PAYE to TAJ by the 14th of the following month. For example, PAYE deducted in March must be remitted by April 14th. Annual employer returns (SO1/SO2) are due by March 31 each year (Jamaica's tax year runs April 1 – March 31).
Late remittance attracts a surcharge plus interest at 40% per annum on late payments. Use our year-end payroll guide to stay ahead of every deadline.
PAYE vs other statutory deductions
PAYE is one of four statutory deductions Jamaican employers must make. The others are:
- NIS (National Insurance Scheme) — 3% employee, 3% employer (ceiling: JMD $5M/year)
- NHT (National Housing Trust) — 2% employee, 3% employer (no ceiling)
- Education Tax — 2.25% employee, 3.5% employer (no ceiling)
Our calculator above computes all four deductions simultaneously, giving you the complete picture of employee net pay and total employer cost.
Automate PAYE calculations
Manual PAYE calculations are error-prone and time-consuming — especially when rates change or you have multiple employees on different pay frequencies. Payroll Jamaica automates every PAYE, NIS, NHT, and Education Tax calculation, generates TAJ-compliant payslips, and produces remittance reports ready to submit. No spreadsheets. No errors.