Income tax, NIS and your payslip

6 min read · Before you start: Beginner lesson on tax · Updated 26 October 2026

Your payslip answers a basic question: why is the money in your account less than what you were promised? Once you can read it, you can check it for mistakes and plan with your real take-home pay.

Gross, deductions and net

Gross pay: what you earn before anything is taken off.
Deductions: amounts taken off by law or by agreement.
Net pay (take-home): what is paid to you. This is the number to budget with.

Common deductions

Line	What it is
PAYE / income tax	Tax on income, taken by your employer and paid to the Board of Inland Revenue (BIR).
NIS	National Insurance contribution, which builds your entitlement to benefits such as a pension.
Health surcharge	A small weekly amount that depends on earnings.
Pension or provident fund	Your contribution to a workplace retirement plan.
Union dues, medical plan, loan repayments	Deductions you agreed to.

How income tax works

You pay tax only on chargeable income, which is your income after the tax-free allowance and other allowed deductions. According to the Budget 2026 figures reported by EY, for the 2026 income year:

The personal allowance is TT$90,000 a year.
The rate is 25 percent on chargeable income up to TT$1,000,000 and 30 percent above that.
Some deductions can lower chargeable income, within limits. Examples listed include approved pension contributions, certain tertiary education costs and a first-time homeowner allowance.

Check before you rely on it: Budget 2027 was presented on 12 October 2026. The Appropriation (Financial Year 2027) Bill passed the House of Representatives on 25 October 2026 and the Senate in late October, and then goes to the President for assent. That Bill authorises spending rather than enacting tax changes, which depend on a separate Finance Bill. The EY and PwC summaries say the 25 and 30 percent rates and the TT$90,000 allowance continue for the 2027 income year. A higher allowance for pensioners (TT$102,000 from 1 January 2027) is proposed and, according to PwC, depends on a Finance Bill. NIS contribution rates rose in 2026 and a further rise is proposed. Proposals can still change, so check the official sources below and decide what applies to you.

A simple example

Suppose you earn TT$150,000 in a year and have no other deductions.

Subtract the allowance: 150,000 - 90,000 = TT$60,000 chargeable income.
Apply 25 percent: 60,000 x 0.25 = TT$15,000 income tax for the year.

That is about TT$1,250 a month, an average of 10 percent of the TT$150,000, even though the top rate is 25 percent. Only the slice above the allowance is taxed.

NIS

NIS is paid jointly by employee and employer. EY reports that the combined contribution rate rises from 13.2 percent to 16.2 percent from 5 January 2026, and to 19.2 percent from 4 January 2027, with the full-pension age rising from 2028. Your own share and the earnings limits are set by the National Insurance Board, so ask your employer or the NIB for the current split.

What to look for on a payslip

Does gross pay match what was agreed, including overtime and allowances?
Are the tax and NIS lines reasonable for your pay?
Do you recognise every other deduction?
Does net pay match what reached your account?

If something looks wrong, ask the payroll or HR office in writing. Keep your payslips; you may need them for loans, renting and tax.

If you work for yourself

Nobody deducts tax for you. Set aside part of each payment, register as required, keep every receipt and invoice, and file your returns on time. Ask the BIR or an accountant how the rules apply to your work.

Key ideas: Budget with net pay. Tax is charged only above the allowance. Rates and NIS contributions change, so check the official figure each year.

Where sources differ, go to the source. Rates, allowances and NIS contributions are changed by each budget, and summaries by different firms may be worded differently. Read the official information and decide for yourself what applies to you. Useful places: Board of Inland Revenue, Ministry of Finance, EY's Budget 2027 review, PwC Budget Insights 2027.

Test yourself

Quick check 1 of 3

Which number should you use when you make a monthly budget?

Quick check 2 of 3

Using the 2026 figures in this lesson, a person earning TT$100,000 a year, with no other deductions, pays how much income tax?

Quick check 3 of 3

What is NIS mainly for?

Not financial advice. This lesson is general education only. See our editorial policy and disclaimer.