Every year, thousands of employees across T&T overpay their taxes. Not because the IRD is taking more than they should. People simply don't claim everything they're entitled to. The deductions exist in the law. They're legal, they're legitimate, and they're yours to claim. They just don't advertise them.
This is the list. Go through it before you file.
How Deductions Actually Work
Before the list, a quick explanation worth having.
Your income tax isn't calculated on everything you earn. First, the IRD subtracts your approved deductions from your gross income. What's left is your "chargeable income." That's what gets taxed at 25% (or 30% if you're earning above TTD $1 million).
So every dollar of deduction you claim is a dollar that doesn't get taxed. If you're in the 25% bracket, a $10,000 deduction saves you $2,500 in tax. That's real money staying in your pocket.
Most PAYE employees claim the personal allowance and stop there. That's the costly mistake.
The Full List of PAYE Deductions
Personal Allowance: TTD $90,000
This one is automatic. Every resident individual gets $90,000 deducted from their gross income before tax is calculated. If you earn less than $90,000 a year, you pay zero income tax.
You don't need to do anything to claim it. But it's worth understanding, because everything else on this list stacks on top of it.
NIS Contributions
Your contributions to the National Insurance System are deductible up to 70% of contributions made. Your TD4 slip shows exactly how much was deducted from your salary for NIS during the year.
Worth noting: NIS contribution rates increased by 3% from January 2026. So if your contributions felt higher this year, that's why. The upside is a slightly larger deduction.
Health Surcharge
The health surcharge deducted from your pay each month is also deductible. Again, your TD4 shows the exact figure. Small deduction, but every bit counts.
Approved Pension Fund Contributions, Deferred Annuity & NIS — Combined Cap of $60,000
This is one of the most valuable deductions and one of the most underused.
Pension fund contributions, deferred annuity premiums, and 70% of your NIS contributions all fall under a single combined cap of TTD $60,000 per year. That's a potential $15,000 in tax savings for someone in the 25% bracket.
The keyword for pensions is "approved." Your pension fund needs to be registered and approved by the IRD. Most employer pension schemes qualify. If you're contributing to one independently, check with your provider. For deferred annuities, the same applies — check whether your annuity product is IRD-approved and claim it.
New for 2026: if you're receiving income from a private pension, that income is now fully tax-exempt. The 2026 budget removed income tax on private pensions entirely, effective January 1, 2026. If this applies to you, make sure your return reflects it correctly.
Mortgage Interest
If you have a mortgage on your primary residence, the interest portion of your payments is deductible. Not the full payment, just the interest. Your mortgage statement from your bank or financial institution will show this breakdown.
This is one people regularly miss, especially first-time homeowners who may not realise it applies from the very first year of their mortgage.
First-Time Homeowner Deduction
Bought your first home? There's an additional deduction on top of the mortgage interest deduction. You'll need supporting documentation: a sworn affidavit confirming first-time ownership, your deed of conveyance, and your mortgage deed.
If this applies to you and you haven't been claiming it, you may be entitled to file amended returns for previous years.
Tertiary Education Expenses
Pursuing a degree, diploma, or approved certificate programme at a recognised institution? The tuition and related costs are deductible.
This applies to full-time and part-time study. Keep your acceptance letter and receipts for tuition payments. The institution needs to be on the IRD's approved list, which covers most accredited local and regional universities.
This one catches people off guard because they assume it only applies to full-time students. It applies to working professionals studying part-time too.
CNG Conversion
Converted your vehicle to run on Compressed Natural Gas? The cost of conversion is deductible. Keep your receipt from the conversion centre. This deduction was introduced to encourage the switch and it's still on the books.
Alimony and Maintenance Payments
If you're making court-ordered alimony or maintenance payments, those amounts are deductible. You'll need the court order and evidence of the payments made during the year.
Covenanted Donations
Charitable donations made under a deed of covenant to an approved organisation are deductible, up to 15% of your total taxable income. The donation needs to be structured as a covenant (a legal commitment to donate over at least three years), not a one-off contribution.
If you give regularly to your church, a charity, or an approved community organisation, ask whether they can set up a deed of covenant arrangement. Many organisations are already set up for this.
Deductions People Miss Most Often
If you read nothing else, read this section.
Pension contributions are the big one. Employers don't always communicate clearly that employees can claim this independently of what the employer contributes. If any portion of your pension contribution comes out of your own salary, claim it.
Mortgage interest is missed constantly by people who think they only qualify for the first-time homeowner deduction and not the ongoing interest deduction. Both apply simultaneously.
Part-time study is overlooked because people assume education deductions are for full-time students. They're not. If you're doing an evening MBA or a professional certification, keep those receipts.
Prior year deductions sometimes go unclaimed because people don't realise they can file amended returns. If you've been missing deductions for the past few years, it may be worth speaking to the IRD about your options.
What You Need to Claim Each Deduction
The IRD will ask for documentation if your return is reviewed. Keep these on file:
- NIS and Health Surcharge: your TD4 slip covers both
- Pension contributions: annual statement from your pension provider
- Mortgage interest: annual mortgage statement from your bank
- First-time homeowner: sworn affidavit, deed of conveyance, mortgage deed
- Tertiary education: acceptance letter and tuition payment receipts
- CNG conversion: receipt from the conversion centre
- Alimony: court order and payment records
- Covenanted donations: deed of covenant and payment receipts
You don't submit all of this upfront with your e-Tax return, but you must be able to produce it if asked. Keep everything for at least five years.
The Difference It Makes
Here's a rough example. Take an employee earning TTD $180,000 a year.
Without any deductions beyond the personal allowance, their chargeable income is $90,000. Tax owed: $22,500.
Now add: $12,000 in pension contributions, $8,000 in mortgage interest, $15,000 in tertiary education expenses. Total additional deductions: $35,000. New chargeable income: $55,000. Tax owed: $13,750.
That's a difference of $8,750. On the same salary. Just from claiming what was already available.
The Faster Way to Make Sure You Claim Everything
Going through the deductions list manually and cross-referencing your documents takes time, and it's easy to second-guess yourself on what qualifies.
TaxDash walks you through each deduction with plain-language questions, so nothing gets overlooked. Upload your TD4, answer what applies to you, and TaxDash calculates your full deduction picture and shows you exactly what your refund or balance looks like before you file.
When you're ready to submit, the TaxDash Chrome extension auto-fills your e-Tax return directly. No copying figures across, no risk of a typo costing you money.
Start your 2025 return on TaxDash and know exactly what you're owed before you file.