Calculating your tax (yearly tax assessment)

Calculation of income tax

You don't pay any tax if your income is below the single tax threshold.

Your yearly ta​x is calculated​ based on your total taxable income in the year over the tax threshold, less any deductions​ you can claim.

You pay tax at the lower of two calculations:

• the standard rate calculation
  
• the marginal relief calculation
  

Standard rate calculation

The standard rate of tax in Jersey is 20%. This is the maximum personal income tax you will pay in a year. 

Exemption thresholds

To protect people on low incomes there are tax exemption thresholds. If your income is below the exemption threshold you don't pay income tax.

Extra tax reliefs 

Your exemption threshold may also be increased by the following:

• allowances for children
  
• child care tax relief for payments to registered child care providers
  
• interest payments on your Jersey home (until 2025)​
  

Allowances, reliefs and deductions for income tax

Marginal relief calculation

If you have a low income, but it's more than the exemption threshold, you'll pay some tax but it won't be at the maximum rate. Instead we use a calculation so that you pay a gradually increasing amount of tax as your income goes up.

This calculation uses the tax allowances and a marginal percentage rate of 26%.

Marginal relief explained

Your tax assessment

If you are liable to Jersey tax you'll receive a tax assessment showing how your tax has been worked out.

It will include:

• a breakdown of all your income which is liable to tax in Jersey
• any allowable expenses
  
• any allowable pension contributions you have made 
  
• the tax at the standard rate
• any allowances (like child allowance)
  
• marginal relief calculation
  
• the tax you have been charged (the lower of the marginal rate and the standard rate calculation)