Is Jersey tax free?
No — Jersey is low-tax, not tax-free.
Jersey charges income tax at a standard 20%, GST at 5%, and Social Security contributions. It charges no capital gains tax, no inheritance tax and no VAT.
Jersey is a Crown Dependency with its own tax system — separate from the United Kingdom and outside the European Union. It sets its own rates and rules through Revenue Jersey, and they are simpler and lower than the UK's. This guide covers the three taxes most people and businesses actually pay, then the ones Jersey doesn't charge at all.
| Tax | Rate | Who pays |
|---|---|---|
| Income Tax | 20% standard | Residents, on worldwide income |
| GST | 5% | Businesses over £300,000 turnover |
| Social Security | ~6.5% employer / ~6% employee | Employers, employees, self-employed |
| Capital Gains Tax | None | — |
| Inheritance Tax | None | — |
| VAT | None (GST instead) | — |
Income Tax — a Standard 20%
Jersey income tax has one standard rate: 20%. There are no higher bands, so no one pays more than 20% on income. Many residents pay a lower effective rate through marginal relief, which applies personal allowances and taxes the balance at 26% up to the point where that produces a bill below the flat 20% — you pay whichever calculation is lower.
Employees pay as they earn through the Income Tax Instalment System (ITIS) — an effective rate deducted from each payslip. The self-employed and company owners file a personal tax return each year and may pay on account. Exact allowances and rates change; confirm yours with Revenue Jersey at gov.je.
Full guide: Income Tax Self-Assessment in Jersey →
GST — 5% (Jersey's Version of VAT)
Jersey charges Goods and Services Tax (GST) at 5% — a fifth of the UK's 20% VAT. Registration is compulsory once a business's taxable turnover passes £300,000 in a rolling 12-month period; below that it is voluntary. Registered businesses charge 5% on most sales, reclaim the GST they pay on purchases, and file returns to Revenue Jersey.
GST guide → · Do you need to register? →
Social Security Contributions
Jersey runs its own Social Security system — not UK National Insurance. Employers and employees pay monthly Class 1 contributions on earnings up to a monthly ceiling: roughly 6.5% employer and 6% employee (the rates and ceiling are set each year — verify current figures on gov.je). The self-employed pay Class 2 contributions. Contributions fund pensions, benefits and healthcare support.
Full guide: Jersey Social Security for employers →
The Taxes Jersey Doesn't Charge
This is where Jersey differs most from the UK. Jersey has:
- No capital gains tax — gains on selling assets, shares or property are not taxed
- No inheritance tax or estate duty on Jersey assets
- No VAT — GST at 5% applies instead
- No stamp duty on share transfers
These absences are why Jersey is described as low-tax — but income tax, GST and Social Security still apply to everyday earning and trading.
Business & Company Tax
Jersey companies fall under the "zero/ten" corporate regime: most trading companies pay 0% corporate income tax, financial-services companies pay 10%, and utilities, large retailers and Jersey property income are taxed at 20%. Sole traders and partnerships are taxed on their profits through the owners' personal income tax instead.
Separately, every Jersey company must file an annual return with the JFSC Companies Registry by the end of February each year, with an annual fee. Corporate tax rules are detailed — confirm your company's position with Revenue Jersey or an adviser.
Sole trader vs limited company → · Annual accounts & the Registry →
Key Deadlines
The dates that catch most Jersey businesses out are the monthly Combined Employer Return (ITIS + Social Security), the end-of-February company annual return, and the personal tax return deadline. Quarterly GST returns are due for registered businesses.
Frequently Asked Questions
Is Jersey tax free?
No. Jersey is a low-tax jurisdiction, not a tax-free one. You pay income tax at a standard 20%, GST at 5%, and Social Security. Jersey charges no capital gains tax, no inheritance tax and no VAT.
Do you pay income tax in Jersey?
Yes — Jersey residents pay income tax on worldwide income at a standard 20%, often at a lower effective rate through marginal relief. Employees pay via ITIS through the year.
What is the income tax rate in Jersey?
The standard rate is 20%, with no higher bands. Many pay less overall because of marginal relief. Confirm your position with Revenue Jersey at gov.je.
How much is GST in Jersey?
GST is 5% — a fifth of UK VAT. Businesses must register once taxable turnover exceeds £300,000 in a rolling 12-month period.
Does Jersey have capital gains or inheritance tax?
No. Jersey charges neither capital gains tax nor inheritance tax, and has no VAT.
Important Disclaimer
This guide is general information, not tax advice, and rates and thresholds change. Always confirm your position with Revenue Jersey (gov.je) or a qualified adviser before acting.
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