An Overview of Jersey's Personal Tax System

Summary

Jersey is a British Crown Dependency which operates its own income tax regime, independently from other jurisdictions.

The Jersey income tax regime is administered by Revenue Jersey.

The standard rate of Jersey income tax is 20%.  Marginal relief is available for Jersey residents with low taxable income.

Jersey applies an additional “long term care contribution” of 2% to taxable income (subject to an annual cap).

Jersey does not tax capital gains, gifts or inheritances.

Non-residents are subject to Jersey income tax at 20% on Jersey source income.

Jersey applies tax on a calendar year basis (ie a “year of assessment” is from January to December).

Forms of Jersey tax residency

An individual is considered tax resident in Jersey where they:
    
•    move to Jersey and intend to live here for five years or more;
•    spend more than 183 days in Jersey during a calendar year;
•    spend on average more than 90 nights per year for a four-year period;
•    spend more than one night per year in “available accommodation”.

Accommodation is usually considered to be “available” if the individual owns, rents or leases the property and can use it when they choose.  Property owned by an individual’s partner or spouse is usually treated as available accommodation.

Short stays in hotels or serviced apartments are not normally considered to be available accommodation.

Jersey tax for non-residents

Non-residents are subject to Jersey income tax on their Jersey source income.

Jersey source income includes (but is not limited to) Jersey property income, income from Jersey trading activities and income from employment exercised in Jersey.

Where an individual exercises their employment in Jersey (even for one day), that individual may be subject to Jersey tax on the income arising from the employment exercised in Jersey, unless the provisions of a Double Tax Agreement provide otherwise.

From 2024, Revenue Jersey have introduced a short-term business visitors exemption to this potential tax exposure.  Under this exemption, non-residents spending 60 days or fewer in a calendar year in the Island are exempt from Jersey tax on salaries, bonuses, benefits in kind and fees arising from exercising their employment in Jersey.

Any time spent in Jersey is considered a “day” with respect to the day count for the exemption, including travel days or days spent in Jersey not working.

Filing and Deadlines

Personal tax returns must be filed annually, with the deadline for paper returns being 31 May and for electronic returns being 31 July in the year after the year of assessment (ie by 31 May 2025/ 31 July 2025 for 2024 returns).

Late submission penalties apply.

Social Security Contributions

In addition to income tax, Jersey residents are required to pay social security contributions which fund healthcare, pensions, and other social services.

Social security is levied at standard rates of 6% for employees and 6.5% for employers, subject to an annual cap.  An additional 2% rate is applied to employers on higher earnings.

Self-employed individuals are subject to social security at the combined employee and employer rate.

 

RSM Channel Islands offers a range of services which can help both individuals and employers navigate the Jersey personal tax system.  Please get in touch if you think we can help you.

This information is provided for general guidance only and is subject to change.  It is not intended to form advice and should not be relied upon as such.  The application of Jersey’s tax rules can be complex, and professional advice should be sought.