Grenada Personal Tax Guide: Progressive PIT 0-28% 2026
Grenada applies a progressive personal income tax (PIT) system with rates of 0%, 10%, 15%, 20%, and 28%. The first XCD 36,000 of annual income is tax-free. Income between XCD 36,001 and XCD 60,000 is taxed at 10%, XCD 60,001-100,000 at 15%, XCD 100,001-150,000 at 20%, and income above XCD 150,000 at 28%. Here is how Grenadian personal tax works in 2026.
Individual Income Tax in Grenada is governed by the Income Tax Act and administered by the Inland Revenue Division (IRD). The tax year is the calendar year. Residents are taxed on worldwide income, while non-residents are taxed only on Grenada-source income. Grenada's progressive system features relatively generous allowances compared to other Caribbean jurisdictions. Check residency rules →
Real-world example: An employee earning XCD 60,000 per year pays 0% on the first XCD 36,000 = XCD 0, and 10% on the remaining XCD 24,000 = XCD 2,400. Annual PIT: XCD 2,400. Effective tax rate: 4%. For a high earner at XCD 200,000/year: 0% on XCD 36K, 10% on XCD 24K = XCD 2,400, 15% on XCD 40K = XCD 6,000, 20% on XCD 50K = XCD 10,000, 28% on XCD 50K = XCD 14,000. Total PIT: XCD 32,400. Effective rate: 16.2%. NIS contributions are separate →
Personal Income Tax Rates 2026
- 0% — Annual income up to XCD 36,000 (tax-free threshold)
- 10% — Annual income from XCD 36,001 to XCD 60,000
- 15% — Annual income from XCD 60,001 to XCD 100,000
- 20% — Annual income from XCD 100,001 to XCD 150,000
- 28% — Annual income above XCD 150,000
The progressive bands apply to employment income, business income for individuals, and other personal income. There is no separate surtax or solidarity contribution. Grenada uses individual filing — each person files separately.
Taxable Income Categories
Grenadian 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 have separate withholding tax rates rather than being included in progressive PIT
- Capital gains: Grenada has no separate capital gains tax (see capital gains guide)
Employment income is subject to monthly withholding by the employer. The employer deducts PIT and NIS contributions before paying the net salary. Annual filing requirements →
Tax Credits and Deductions
Grenada offers limited tax credits and deductions for individuals:
- Personal allowance: The XCD 36,000/year threshold serves as the primary personal allowance
- NIS contributions: Employee National Insurance Scheme contributions are deductible from taxable income
- Medical expenses: Certain medical expenses may be deductible within limits
- Education expenses: Tuition fees for approved educational institutions may qualify
- Mortgage interest: Interest on primary residence mortgage is deductible up to XCD 15,000 per year
- Charitable donations: Donations to approved charitable organizations are deductible up to 10% of income
Tax deductions generally require documented expenses. The Inland Revenue Division provides specific guidelines on allowable deductions.
National Insurance Scheme Contributions
Employees in Grenada must contribute to the National Insurance Scheme (NIS). The rates for 2026 are:
- Employee share: 4% of gross salary (capped at XCD 5,000/month insurable earnings)
- Employer share: 5% of gross salary (capped at XCD 5,000/month insurable earnings)
- Self-employed: 8% of declared income (capped at XCD 5,000/month)
Contributions are calculated on gross salary up to the cap of XCD 5,000 per month. The employer withholds both the employee and employer portions and remits them to the NIS. Detailed NIS guide →
Who must file a Grenadian 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 XCD 36,000 must file an annual return by April 30. Non-residents with Grenada-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. Employers include all cash and non-cash benefits in the monthly payroll calculation.
Is there a wealth tax or net worth tax in Grenada?
No. Grenada does not impose a wealth tax, net worth tax, or solidarity tax on individuals. Property transfer tax applies on real estate transactions, and there is an annual property tax, but no tax on total net worth. Wealth tax guide →