Knowledge base
PAYE in Trinidad & Tobago 2026: the allowance, the 70 % NIS deduction and two bands
PAYE is calculated on your annual pay and then converted back to the period, which is why the amount withheld each month is not simply a percentage of the month. This is the exact order the payroll engine applies.
The order the engine follows
- Annualise the period wage (× the number of pay periods in a year).
- Subtract the personal allowance of TTD 90,000 a year.
- Subtract 70% of the employee's annual NIS contribution — the deductible share of National Insurance.
- Tax what remains: 25% up to TTD 1,000,000 and 30% above it.
- Divide the annual tax back to the pay period. That is the PAYE withheld.
The two bands
The bands apply to chargeable income — after the allowance and the NIS deduction — and they are progressive: each slice is taxed at its own rate.
| Bracket | Rate |
|---|---|
| SRD 0 – SRD 1,000,000 | 25% |
| SRD 1,000,000 + | 30% |
The Health Surcharge sits next to PAYE
Separately from PAYE, a Health Surcharge is withheld. It is flat, not proportional: TTD 8.25 a week when earnings reach TTD 109 a week (or TTD 469.99 a month), and TTD 4.8 a week below that — converted to your pay frequency like everything else.
It is neither taxable nor deductible: it does not reduce your chargeable income.
What we do not assert yet
Two questions are still open with the Board of Inland Revenue and are deliberately not claimed here: the exact shape of the published deduction tables (annualise-then-divide, as the engine does, versus the printed table), and whether the 70% NIS deduction is itself capped by the aggregate relief limit of TTD 60,000. When those are answered the engine changes and this page follows.
Frequently asked questions
- Why is my PAYE lower than 25 % of my salary?
- Because the personal allowance of TTD 90,000 a year comes off before tax, and so does 70% of your NIS. Only what is left is taxed.
- Is the Health Surcharge a percentage?
- No. It is a flat weekly amount — TTD 8.25 or TTD 4.8 depending on your earnings — converted to your pay frequency.
- Is NIS deductible for PAYE?
- Yes, 70% of the employee's NIS contribution reduces chargeable income. The remaining share does not.
Indicative information based on the rates Wage Payroll applies — not tax, legal or payroll advice.