|Annual Taxable Income ($)
|20,000 to 35,000
|35,000 to 40,000
|40,000 to 75,000
|75,000 to 5,00,000
|Annual Taxable Income ($)
|20,000 to 70,000
|70,000 to 80,000
|80,000 to 150,000
|150,000 to 5,00,000
New Jersey has six marginal tax brackets, ranging from 1.40% (the lowest New Jersey tax bracket) to 8.97% (the highest New Jersey tax bracket). Each marginal rate only applies to earnings within the applicable marginal tax bracket, which are the same in New Jersey for single filers and couples filing jointly. The Federal Income Tax, by contrast, has different tax brackets for married, single, and Head of Household taxpayers.
Jersey Income Tax Rate for Individual Tax Payers
Personal income tax in Jersey is based around a standard 20% rate of tax with limited deductions and allowances. However, to protect the lower to middle income earners, a separate calculation called marginal relief is also performed using the exemption thresholds. Further deductions like mortgage interest relief and child care relief may also be taken into account in the marginal calculation.
There are tax exemption thresholds to prevent liability to tax
for individuals or families on low incomes. These are as follows
single person 14,000
married persons / civil partners 22,400
single person over 63 years of age 15,600
married persons / civil partners over 63 years of age 25,700
These exemption thresholds are increased if the single person or
married couple is entitled to any of the following allowances or
lower child allowance (child at school) 3,000
higher child allowance (child in higher education) 9,000
additional personal allowance (single parent) 4,500
wifes earned income allowance (wife working) 4,500 max
civil partner earned income allowance (civil partner 'b' working) 4,500 max
child care tax relief 6,150 max per child
enhanced child care tax relief (pre-school age children) 12,000 max per child
qualifying maintenance payments
qualifying interest tax relief
Low and middle earners - marginal band
Taxpayers who are
sometimes called low and middle income earners whose total
income is in excess of their exemption threshold fall into what
is termed the 'marginal band'. The calculation of their
liability to tax at the marginal rate of 26% ensures that there
is no disproportionate increase in their tax bill if their
income exceeds their exemption threshold.
Because of these exemption thresholds being used in the calculation of tax (increased as appropriate by the above allowances or reliefs) it is only those with high incomes who do not benefit from them.
This means that if in any year your total income is less than the exemption threshold, the percentage of tax you will pay on that income will be 0%. As your income increases or your circumstances change, the percentage of tax you pay will increase as the marginal relief gradually tapers away until you are paying the maximum 20%.
0% rate tax
Most companies will fall under this category. For example
investment holding companies, J-Category property holding
companies and trading companies that are not financial services
Financial services company subject to the 10% tax rate
The Law defines a 'financial services company' as one
registered, or holding a permit, by virtue of various Laws
administered by the Financial Services Commission. The following
entities are the ones to which the 10% corporate rate of tax
all entities carrying out banking business through a permanent establishment in Jersey, whether through a Jersey company, through a branch or through some other structure
all entities carrying on the business or trade of trust business through a permanent establishment
all entities carrying on investment business, independent financial advice and similar activities through a permanent establishment
all entities carrying on investment business or trade of funds
administrator or funds custodian through a permanent
Income from land, property and / or property development and / or quarrying in Jersey subject to the 20% tax rate
This includes all income from:
development lodging houses
quarrying and similar activities in Jersey only
Note the fact that a company receives income subject to tax at
20% does not alter the 'category' of company under which the
company falls (ie. the company itself can still be a 0% / 10% or
Income from the importation / supply of hydrocarbon oil subject to the 20% tax rate
This includes all companies involved in the importation of oil into Jersey.
Utility company subject to the 20% tax rate
Utility companies include water, electric, gas and telecoms.
Annuity company which incorporates an approved Self-Administered Retirement Annuity Contract
This includes private pension companies.
Intermediary services vehicle
The legislation was introduced to cover situations whereby a
company which receives a payment from a client in respect of
services rendered by an individual, who is a member of the
company, to the client under arrangements which were it not for
the interposition of that company, the relationship would be one
of employer and employee.
Incorporated in Jersey but its business is centrally managed and controlled abroad, is tax resident abroad and pays foreign tax of 20% or more
This includes Jersey registered companies, managed and controlled in the UK or elsewhere
Jersey Dates of filing Returns / Reporting and Payment
The taxable income
year in Jersey is the calendar year and is referred to as the
year of assessment. Persons subject to income tax must file
income tax returns with the Comptroller of Taxes if required to
do so by general or particular notice. Jersey does not operate a
Pay-As-You-Earn (PAYE) system. However, it operates a similar
system called the Income Tax Installment System (ITIS). Under
the ITIS, income tax payments are deducted from an employees
salary and applied towards settlement of the preceding years
tax liability. New residents pay ITIS on a current-year basis.
Married persons and persons in a civil partnership are assessed
jointly, not separately, on all types of income, unless they
elect otherwise. Separate assessment does not provide a
Taxpayers are normally notified of tax assessments in the year following the year of assessment. Tax must be paid to the Comptroller of Taxes on the day after the day on which the assessment is issued. However, in practice, a reasonable amount of time to pay is allowed. A 10% surcharge is levied on any remaining tax unpaid by the specified date, which is the Friday following the first Monday in December in the year following the year of assessment. For taxpayers who suffer tax under the ITIS, it is not usually necessary to make a balancing payment.
Returns are required to be filed by 6:00 p.m. on the last Friday in May following the year of assessment (last Friday in July if an agent has been appointed). A maximum penalty of 250 is imposed for returns not submitted by the deadline.