Skip to main content Skip to accessibility
This website is not compatible with your web browser. You should install a newer browser. If you live in Jersey and need help upgrading call the States of Jersey web team on 440099.
homegov.je

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

  • Choose the service you want to log in to:

  • gov.je

    Update your notification preferences

  • one.gov.je

    Access government and parish services

  • CAESAR

    Clear goods through customs or claim relief

  • Talentlink

    View or update your States of Jersey job application

Marginal rate calculation of personal tax

​​​​Marginal calculation of tax explained

Personal income tax in Jersey is based around a 20% rate of tax.

There are tax exemption thresholds that keep you from paying tax if your income is below the exemption threshold in the year.

If your income is over the exemption threshold you will pay tax, but the exemption threshold and any other deductions you are entitled to claim are used to calculate your tax using a marginal rate tax calculation.  

2018 tax exemption thresholds and deductions

This means:

  • if your income is below the total of the exemption threshold and any other deductions you will pay no tax
  • if your income is over the total of the exemption threshold and any other deductions you will gradually pay more tax as your income increases
  • you will never pay more than 20% personal tax on your total income in the year 
The following examples show the differences in tax between the standard rate tax calculation and the marginal rate calculation.​

Example tax calculations for a single person

Standard tax calculation​
Marginal tax calculation​
​Income
​£20,000
​Income
​£20,000
Less: exemption threshold​​£14,900
​Taxable income =
​£20,000
​Taxable income =
​£5,100
​Tax at 20% =
​£4,000
​Tax calculation at 26% =
​£1,326
​The amount of tax due is the lower calculation = £1,326. This means you would pay around 6.7% tax on your total income.






​Standard tax calculation
​Marginal tax calculation
​Income
​£70,000
​Income
​£70,000


​Less: exemption threshold
​£14,900
​Taxable income =
​£70,000
​Taxable income =
​£55,100
​Tax at 20% =
£14,000​
​Tax at 26% =
​£14,326
​The amount of tax is the lower calculation = £14,000. This means you will pay 20% tax on your total income.




Example tax calculations ​for a married couple

​Standard tax calculation
​Marginal tax calculation
​Income (one spouse not working)
​£35,000
​Income (one spouse not working)
​£35,000
​Less: exemption threshold
​£23,950


​Less: 1 child allowance
​£3,000
​Taxable income =
​£35,000
​Taxable income =
​£8,050
​Tax at 20% =
​£7,000
​Tax at 26% =
​£2,093
​The amount of tax is the lower calculation = £2,093. This means you will pay around 6% tax on your total income.

 

​Standard tax calculation
​Marginal tax calculation
​Income (one spouse not working)
​£125,000
​Income (one spouse not working)
​£125,000

​Less: exemption threshold
​£23,950


​Less: 1 child allowance
​£3,000
​Taxable income =
​£125,000
​Taxable income = 
​£98,050
​Tax at 20% =
​£25,000
​Tax at 26% =
​£25,493
​The amount of tax is the lower calculation = £25,000. This means you will pay 20% tax on your total income.


Back to top
rating button