Free Cheat Sheet · 2026 Tax Year
Jamaica Payroll Tax Rates 2026
Free Cheat Sheet
Every payroll rate Jamaican employers need on a single page — PAYE income tax bands, NIS, NHT, Education Tax, and HEART/NSTA levy. Print it, pin it to your wall, or download the PDF.
PAYE — Pay As You Earn (Income Tax)
Deducted from employee wages. Employer remits to TAJ by the 14th of each month.
| Item | Rate / Amount |
|---|---|
| Annual income tax threshold | JMD $1,902,360 |
| Monthly threshold (÷12) | JMD $158,530 |
| Weekly threshold (÷52) | JMD $28,848 |
| Band 1: first $6,000,000 above threshold | 25% |
| Band 2: everything above $6,000,000 above threshold | 30% |
| Who pays | Employee only |
| Earnings ceiling | None — applies to all earnings |
| Monthly remittance deadline | 14th of following month |
| Annual return (SO1) | March 31 |
| Late penalty | 10% surcharge + 1.5%/month interest |
NIS — National Insurance Scheme
Social security. Provides sickness, maternity, retirement, and invalidity benefits.
| Item | Rate / Amount |
|---|---|
| Employee contribution | 3.0% of insurable wages |
| Employer contribution | 3.0% of insurable wages |
| Total NIS cost | 6.0% |
| Insurable wage ceiling (annual) | JMD $5,000,000 |
| Monthly ceiling (÷12) | JMD $416,667 |
| Coverage | All employed persons aged 18–65 |
| Remittance deadline | 14th of following month |
| Portal | nis.gov.jm |
NHT — National Housing Trust
Funds affordable housing loans for Jamaican workers.
| Item | Rate / Amount |
|---|---|
| Employee contribution | 2.0% of gross salary |
| Employer contribution | 3.0% of gross salary |
| Total NHT cost | 5.0% |
| Earnings ceiling | None — applies to all earnings |
| Eligibility for benefits | 52+ weekly contributions |
| Remittance deadline | 14th of following month |
| Portal | nht.gov.jm |
Education Tax
Funds public education. Remit to TAJ alongside PAYE each month.
| Item | Rate / Amount |
|---|---|
| Employee contribution | 2.25% of statutory income |
| Employer contribution | 3.50% of statutory income |
| Total Education Tax cost | 5.75% |
| Earnings ceiling | None — applies to all earnings |
| Remittance deadline | 14th of following month (with PAYE) |
HEART/NSTA Levy
National training levy. Employer-only contribution for workforce development.
| Item | Rate / Amount |
|---|---|
| Employee contribution | None |
| Employer contribution | 3.0% of gross payroll |
| Who must pay | Employers with monthly payroll above JMD $292,813.50 |
| Earnings ceiling | None — applies to total payroll |
| Remittance deadline | 14th of following month |
Total Employer Cost Summary (Per Employee)
Mandatory employer-side contributions on top of gross salary:
| Contribution | Employee Pays | Employer Pays |
|---|---|---|
| PAYE (income tax) | 25% / 30% | — |
| NIS | 3.0% | 3.0% |
| NHT | 2.0% | 3.0% |
| Education Tax | 2.25% | 3.5% |
| HEART/NSTA | — | 3.0% |
| Total statutory overhead | 7.25% + PAYE | 12.5% |
Example: An employee earning JMD $200,000/month costs the employer an additional JMD $25,000/month in statutory contributions (NIS + NHT + EdTax + HEART). The employee's deductions (NIS + NHT + EdTax + PAYE) reduce their take-home pay.
Quick Reference: Key Numbers
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Why do Jamaica payroll tax rates matter for employers?
Every Jamaican employer is legally required to deduct and remit statutory contributions on behalf of their employees. Getting the rates wrong — even by a fraction — means you are either shortchanging employees or exposing your business to penalties from Tax Administration Jamaica (TAJ), the National Insurance Scheme, or the National Housing Trust. The rates on this page are current as of the 2026 Jamaica national budget.
How often do Jamaica payroll rates change?
The Ministry of Finance and the Public Service announces statutory rate changes during the annual budget presentation (typically in February or March). The PAYE income tax threshold, NIS ceiling, and HEART/NSTA threshold are the rates most likely to change. NIS, NHT, and Education Tax percentage rates have remained stable for several years, but employers should monitor mof.gov.jm and taj.gov.jm for any mid-year adjustments.
What happens if I remit late or use the wrong rates?
TAJ charges a 10% surcharge on late PAYE remittances plus 1.5% monthly interest on any outstanding balance. NIS and NHT also impose penalties for late or incorrect remittances. Using outdated rates can trigger under-remittance, which TAJ may treat the same as a late payment. The safest approach is to automate your payroll calculations with software that updates rates automatically.
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PayrollJamaica automatically applies the correct statutory rates every pay run. PAYE, NIS, NHT, Education Tax, and HEART/NSTA — calculated and remitted for you.
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