Antigua & Barbuda Personal Tax Guide: Progressive PIT 0-12% 2026
Antigua and Barbuda applies a progressive personal income tax (PIT) system with rates of 0%, 8%, and 12%. The first XCD 36,000 of annual income is tax-free. Income between XCD 36,001 and XCD 180,000 is taxed at 8%, and income above XCD 180,000 is taxed at 12%. Here is how Antigua and Barbuda personal tax works in 2026.
Personal Income Tax in Antigua and Barbuda is governed by the Income Tax Act and administered by the Inland Revenue Department (IRD). The tax year is the calendar year. Antigua and Barbuda operates a territorial tax system — residents are taxed only on Antigua-source income, while non-residents are taxed only on Antigua-source income as well. The progressive PIT system features very low rates compared to most Caribbean and international peers. Check residency rules →
Real-world example: An employee earning XCD 120,000 per year pays 0% on the first XCD 36,000 = XCD 0, and 8% on the remaining XCD 84,000 = XCD 6,720. Annual PIT: XCD 6,720. Effective tax rate: 5.6%. For a high earner at XCD 250,000/year: 0% on XCD 36K, 8% on XCD 144K = XCD 11,520, 12% on XCD 70K = XCD 8,400. Total PIT: XCD 19,920/year. Effective rate: 8.0%. Compared to regional peers, Antigua's top rate of 12% is lower than most Caribbean nations. Social contributions are separate →
Personal Income Tax Rates 2026
- 0% — Annual income up to XCD 36,000 (tax-free threshold)
- 8% — Annual income from XCD 36,001 to XCD 180,000
- 12% — Annual income above XCD 180,000
The bands apply to employment income, business income for individuals, and other personal income. There is no separate surtax or solidarity contribution. Antigua and Barbuda does not have joint filing — each individual files separately.
Taxable Income Categories
Antigua and Barbuda PIT applies to several categories of income:
- Employment income: Salaries, wages, bonuses, allowances, benefits-in-kind — all subject to progressive PIT via payroll withholding
- Business income: Self-employed individuals and sole proprietors are taxed at progressive PIT rates
- Rental income: Income from property leasing is taxed at progressive PIT rates after allowable deductions
- Investment income: Dividends, interest, and royalties are generally exempt from withholding tax (0% WHT)
- Capital gains: No separate capital gains tax — gains on assets are generally not taxable
Employment income is subject to monthly withholding by the employer. The employer deducts PIT and social contributions before paying the net salary. Annual filing requirements →
Tax Credits and Deductions
Antigua and Barbuda offers limited tax credits and deductions for individuals:
- Personal allowance: The XCD 36,000/year threshold serves as the primary personal allowance
- Social security contributions: Employee contributions are deductible from taxable income
- Medical insurance: Premiums paid for health insurance may be deductible
- Charitable donations: Donations to registered charities are deductible up to a percentage of income
- Education expenses: Certain tuition fees for approved institutions may qualify
Tax deductions generally require documented expenses and are subject to annual limits. The IRD provides specific guidelines on allowable deductions.
Social Security Contributions
Employees in Antigua and Barbuda must contribute to the social security system. The rates for 2026 are:
- Social Security — Employee: 4% of gross salary (capped at XCD 5,200/month insurable earnings)
- Social Security — Employer: 6% of gross salary (capped at XCD 5,200/month)
- Medical Benefits — Employee: 4% of gross salary
- Medical Benefits — Employer: 4% of gross salary
The employer withholds both portions and remits them to the Antigua and Barbuda Social Security Board. Detailed social contributions guide →
Who must file an Antigua and Barbuda personal tax return?
Individuals with employment income only (where tax was fully withheld at source) generally do not need to file. Self-employed individuals, those with multiple income sources, or those earning above certain thresholds must file an annual return by April 30. Non-residents with Antigua-source income must also file.
Are bonuses and commissions taxed?
Yes, bonuses, commissions, and additional payments are treated as ordinary employment income and taxed at the progressive PIT rates. There is no special treatment for year-end bonuses or performance incentives.
Is there a wealth tax or net worth tax in Antigua and Barbuda?
No. Antigua and Barbuda does not impose a wealth tax, net worth tax, or solidarity tax on individuals. Property transfer taxes and annual property tax apply to real estate, but no tax on total net worth. Wealth tax guide →