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 rate 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 threshold

To protect people on low incomes there is a tax exemption threshold. If your income is below the exemption threshold in the year you don't pay any income tax.​

Extra tax deductions

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 and deductions for income tax

Marginal rate 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 the marginal rate calculation so that you pay a gradually increasing amount of tax on your total income as your income goes up.

This calculation uses the tax allowances, employment expenses, payments into pension schemes and a marginal percentage rate of 26%.

If you are paying tax at the marginal rate, you will pay less than 20% tax on all your income in the year and you will never pay more than 20% tax in the year.

Marginal rate 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 rate calculation
  
• the tax you have been charged (the lower of the marginal rate and the standard rate calculation)
  
• the difference between the standard rate and the marginal rate calculation