On top of the $90,000 everyone gets, you can take more off your taxable income for things like NIS, pension payments, university fees abroad and a first home. Your employer only counts what you've told them about, so filing a return is how you claim the rest.
Here's the full 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: from January 2026 the combined NIS rate went up from 13.2% to 16.2%, with another increase due in January 2027. That affects your 2026 income, not your 2025 return. The upside is a slightly larger deduction next year.
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: from January 1, 2026, income from approved pension fund plans and approved deferred annuities (on maturity) is tax-exempt. Early surrenders are still taxable. This applies to 2026 income, so pension income on your 2025 return is still taxable.
First-Time Homeowner Mortgage Interest
Bought your first home? You can deduct the mortgage interest you pay, up to TTD $30,000 a year for five years, as long as the home was acquired on or after January 1, 2011. Not the full payment, just the interest. Your annual mortgage statement shows the breakdown.
You'll need supporting documentation: a sworn affidavit confirming first-time ownership, your deed of conveyance, and your mortgage deed.
This is one people regularly miss, especially in the first year of the mortgage.
Tertiary Education Expenses
Paying for a degree or other approved tertiary programme at an institution outside Trinidad and Tobago, for yourself or a dependant? Tuition and related costs are deductible up to TTD $72,000 per household each year. Local programmes don't qualify for this deduction.
Keep your acceptance letter and receipts for tuition payments. Because it's claimed through the BIR, it's worth getting your paperwork together early.
CNG Conversion (Tax Credit)
Converted your vehicle to run on Compressed Natural Gas? This one is a tax credit, which is even better than a deduction: it comes straight off your tax bill. The credit is 25% of the cost of the kit and installation, up to TTD $10,000. Keep your receipt from the conversion centre.
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.
First-time homeowner interest is missed constantly, usually because people don't realise it runs for five years, not just the year they bought.
Overseas study gets overlooked by parents paying for a child's degree abroad. The tertiary deduction covers dependants too, up to $72,000 per household.
Prior year deductions sometimes go unclaimed. If you think you missed deductions in earlier years, ask the IRD on 800-TAXX what your options are.
What You Need to Claim Each Deduction
The IRD will ask for documentation if your return is reviewed. Keep these on file:
- NIS: your TD4 slip shows the amount
- 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 first-time homeowner mortgage interest, $15,000 in tertiary education expenses for a child studying abroad. 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.
Try the free income tax calculator to see if you could be owed money.