In Trinidad and Tobago, the first TTD 90,000 you earn each year is tax-free. After that and your other deductions, your chargeable income is taxed at 25% up to TTD 1,000,000 and 30% on anything above. These rates apply to the 2025 income year, and the FY2026 budget didn't change them.
Here's how it works, with real numbers.
The Three Numbers That Matter
- Personal allowance: TTD 90,000. Every resident individual gets it. That's TTD 7,500 a month.
- 25% on chargeable income up to TTD 1,000,000.
- 30% on chargeable income above TTD 1,000,000.
Chargeable income is your total income minus the personal allowance and any other deductions you qualify for. That's the figure the rates apply to, not your gross salary.
Deductions That Lower Your Tax (2025 Income Year)
- NIS: 70% of the NIS you paid as an employee.
- Pension, annuity and Widows' & Orphans' contributions: deductible. Together with the 70% of NIS, these share one cap of TTD 60,000.
- First-time homeowner: up to TTD 30,000 a year in mortgage interest, for 5 years, on a home acquired on or after 1 January 2011.
- Tertiary education: up to TTD 72,000 per household, for approved programmes at foreign institutions.
- Deeds of covenant to approved charities: up to 15% of total income.
- Alimony or maintenance paid under a court order.
- Travelling expenses (employees): two-thirds of qualifying costs, less any approved allowance.
Some things reduce your tax bill directly instead, as tax credits. One example is 25% of the cost of a CNG conversion kit, up to TTD 10,000.
Our PAYE deductions guide covers each deduction in detail.
Worked Examples
All the examples use 2025 income and the rules above. "NIS paid" is the employee NIS shown on your TD4.
Example 1: TTD 96,000 salary
- Salary: 96,000
- Less personal allowance: 90,000
- Less NIS (70% of 5,000 paid): 3,500
- Chargeable income: 2,500
- Tax at 25%: TTD 625 for the year
Example 2: TTD 120,000 salary
- Salary: 120,000
- Less personal allowance: 90,000
- Less NIS (70% of 6,000 paid): 4,200
- Chargeable income: 25,800
- Tax at 25%: TTD 6,450
Example 3: TTD 250,000 salary, with and without deductions
| No extra deductions | Claiming everything | |
|---|---|---|
| Salary | 250,000 | 250,000 |
| Personal allowance | 90,000 | 90,000 |
| NIS (70% of 7,000) | 4,900 | 4,900 |
| Pension contributions | 0 | 20,000 |
| First-time homeowner interest | 0 | 30,000 |
| Chargeable income | 155,100 | 105,100 |
| Tax at 25% | 38,775 | 26,275 |
Claiming the pension contributions and first-time homeowner interest saves this filer TTD 12,500. If your employer's PAYE didn't account for those deductions, that money comes back to you as a refund, but only if you file.
Example 4: Over the TTD 1 million band
If your chargeable income is TTD 1,500,000:
- 25% on the first 1,000,000 = 250,000
- 30% on the remaining 500,000 = 150,000
- Tax: TTD 400,000
Health Surcharge Is Separate
Health surcharge isn't income tax, but it comes off your pay too. It's TTD 8.25 a week if you earn more than TTD 469.99 a month, and TTD 4.80 a week otherwise. People under 16, people aged 60 and over, and people whose only income is a pension are exempt.
What Changes for 2026 Income
Changes from the FY2026 budget took effect on 1 January 2026, so they affect the return you'll file in 2027, not your 2025 return:
- NIS rates went up, from a combined 13.2% to 16.2%, with a further increase scheduled for January 2027. You'll pay more NIS, and 70% of it remains deductible within the TTD 60,000 cap.
- Income from approved pension fund plans and approved deferred annuities (on maturity) is now tax-exempt. That income is still taxable for 2025.
Skip the Maths
Want a quick number first? The free income tax calculator applies these rules to your TD4 figures in a minute, no sign-up.
TaxDash applies these rules for you. Scan your TD4, answer plain-language questions about your deductions, and see your chargeable income, tax and refund before you file. Then it fills in your e-Tax return for you to review and submit.
Sources: IRD: Individual Income Tax Deductions and Allowances · IRD: Health Surcharge · PwC Worldwide Tax Summaries: Trinidad and Tobago · Finance Act 2025 (Act No. 14 of 2025) · Finance Act 2026 (Act No. 16 of 2026). Examples are simplified illustrations, not tax advice. TaxDash is independent and not affiliated with the IRD.
Frequently asked questions
What is the personal allowance in Trinidad and Tobago?
TTD 90,000 a year for resident individuals. It has applied since income year 2023. If your income after other deductions is TTD 90,000 or less, you pay no income tax.
What are the income tax rates in Trinidad and Tobago for 2025?
25% on chargeable income up to TTD 1,000,000 and 30% on chargeable income above TTD 1,000,000. Chargeable income is what's left after the personal allowance and other deductions.
Is NIS deductible from income tax in Trinidad and Tobago?
Yes. 70% of the NIS contributions you pay as an employee is deductible, as part of an aggregate cap of TTD 60,000 shared with approved pension and annuity contributions.
How much can I earn before paying income tax in Trinidad?
TTD 90,000 a year, which is TTD 7,500 a month, before other deductions. Because NIS and other deductions also reduce your taxable income, many people earning slightly more than that still pay little or no tax.
Did the 2026 budget change income tax rates?
No. The FY2026 budget kept the TTD 90,000 personal allowance and the 25% and 30% rates. Changes such as higher NIS rates and the tax exemption for approved pension income apply from January 2026, so they affect 2026 income, not 2025 returns.