What are the PAYE income tax rates in Grenada?

Compliance

Grenada

DIRECT ANSWER

Grenada applies a two-tier PAYE income tax structure: 10% on the first EC$24,000 of chargeable income (after allowances) and 28% on chargeable income above that threshold. Employers withhold PAYE monthly and remit it to the Inland Revenue Division through the G-TAX system.

How the bands apply

Every resident employee first receives a personal allowance deduction before any tax is calculated. What remains — the chargeable income — is then taxed progressively across the two bands.

Employer withholding responsibilities

Employers calculate PAYE on each pay run by applying the personal allowance, then taxing the remaining chargeable income at 10% up to EC$24,000 and 28% on any excess. The withheld amount is remitted monthly to the Inland Revenue Division via G-TAX, alongside the employer's NIS remittance.

Annual reconciliation

Employees may need to file an annual return if they have income from more than one source, or if their allowances or deductions changed during the year. Employers should provide each employee with a summary of total PAYE withheld for the year to support this.

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How is chargeable income calculated in Grenada?

Chargeable income is gross annual income minus the personal allowance and any other applicable deductions. PAYE bands are then applied to that remaining figure, not to gross pay.

When must employers remit PAYE in Grenada?

PAYE is withheld on each pay run and remitted monthly to the Inland Revenue Division through the G-TAX system, following the Division's published filing calendar.