Guernsey, Channel Islands

Guernsey operates a flat 20% income tax rate for all individuals resident in Guernsey or deriving Guernsey-source income.

The 2025 Guernsey Budget introduced a number of changes in the field of personal taxation.

The personal allowance has been increased from 13,900.00 British pounds sterling (GBP) to GBP 14,600.00, and earners of more than GBP 80,500.00 will have their allowance reduced by GBP 1 for every GBP 5 exceeding this limit. This withdrawal of allowances has been extended beyond the personal allowance (see the Deductions section).

Interim assessments for individuals will now be issued prior to the commencement of the year of charge with instalment payments now due at each calendar quarter (i.e. 15 April, 15 July, 15 October, and 15 January). This is expected to come into effect from the 2024 calendar year.

Social security rates have been increased from 6.9% to 7.0% for the employer contribution and from 7.2% to 7.4% for the employee contribution. Self-employed contributions have been increased from 11.9% to 12.2%.  Lower earnings limits have been increased to GBP 184.00 (weekly) and GBP 797.33 (monthly), and upper earnings limits for both employer and employee have been increased to GBP 3,627.00 (weekly) and GBP 15,717.00 (monthly).

Couples are no longer subject to joint taxation, and each individual is now required to be responsible for their own taxes, including filing tax returns and making any payments due.

Tax return due dates

The Guernsey Revenue Service has decided to initiate steps to reinstate the original annual filing deadline of 30 November as follows:

• Calendar year 2023: 31 January 2025
• Calendar year 2024: 30 November 2025
• Calendar year 2025 onwards: 30 November