---
title: "How Saint Kitts and Nevis payroll tax works in 2026"
description: "Saint Kitts and Nevis payroll in 2026: no income tax on pay, 5% Social Security each side, a levy with a low-earner exemption and the severance fund."
canonical: https://www.teamed.global/country-hiring-guides/saint-kitts-and-nevis/tax-and-payroll
---

Saint Kitts and Nevis · Tax and payroll

# How does *Saint Kitts and Nevis payroll tax* work in 2026?

Saint Kitts and Nevis has no income tax on employees. Payroll runs on three charges collected through the Social Security Board: Social Security, the Housing and Social Development Levy and the severance fund. For companies paying staff here, Teamed's real HR and legal experts, assigned within 24 hours, check the route first and map each payroll duty. Every statutory cost is itemised.

Last reviewed 22 October 2026 · Saint Kitts and Nevis guide

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The short answer

Social Security is 5% from the employer and 5% from the employee for people aged 16 to under 62, on wages up to EC$6,500 a month in the latest regulations we could read.

The levy is 3% from the employer on all pay. Employees pay nothing on wages up to EC$27,040 a year, then 3.5% in the next band. The employer also pays 1% of normal wages into the severance fund.

No income tax is charged on pay. The Social Security Board collects all three charges, and the levy and severance contribution are paid at the end of every month.

## Is there income tax on wages in Saint Kitts and Nevis?

No. The Inland Revenue Department says income tax on individuals was abolished in 1980.

The employer has no income tax to withhold from pay.

The revised Income Tax Act still prints an old table of individual rates, but the Department says income tax on individuals no longer applies. We confirm this position again before the first payslip. Companies still pay corporate income tax, and a company carrying on business in Nevis pays it to the Nevis Island Administration instead of the federal government.

## What does Social Security cost the employer and the employee?

In the latest regulations we could read, the employer and the employee each pay 5% of wages for a person aged 16 to under 62.

It applies to wages up to a ceiling of EC$6,500 a month.

| Person insured | Employee | Employer |
| --- | --- | --- |
| Under 16 | Nil | 1% |
| 16 to under 62 | 5% | 5% |
| 62 and over | Nil | 1% |

The percentages are in Schedule 1 of the Contributions Regulations, and the ceiling is the last entry in Schedule 2, in force from 1 January 1998. We found no later official change, but we could not reach the Social Security Board website. A Government news item of February 2023 quotes a speaker at the Board's anniversary saying 11% of wages is collected, which is more than the 10% in the schedule. We confirm the full employer rate and the ceiling with the Board before the first payslip.

A fine of 5% of the unpaid amount is added for each month or part of a month that a contribution is late. Sickness benefit and the maternity allowance are each 65% of average weekly wages, and employment injury benefit is 75%.

## How does the Housing and Social Development Levy work?

The employer pays 3% of all wages. The employee pays nothing on wages up to EC$520 a week, or EC$27,040 a year, and a higher rate in bands above that.

The 2025 Act lifted that exempt amount from EC$450 a week.

| Annual wages (EC$) | Employee | Employer |
| --- | --- | --- |
| Up to 27,040 | 0% | 3% |
| 27,040 to 78,000 | 3.5% | 3% |
| 78,000 to 96,000 | 10% on the portion above 78,000 | 3% |
| Above 96,000 | 12% on the portion above 96,000 | 3% |

The Act does not say in plain words whether the 3.5% applies to the whole wage once the exempt amount is passed or only to the slice above it. We confirm that with the Social Security Board before the first payslip, which is why this guide gives no employee levy example above the exempt amount.

The employer deducts the employee's levy from pay and pays it with its own share at the end of every month. A late payment adds a penalty of 10% of the levy, and 1% for each further 30 days after the first 30. A December 2025 notice from the Inland Revenue Department refers to a Social Services Levy collected with the Board's contributions, and we confirm which levy rates apply before the first payslip.

## What does payroll look like at four pay levels?

At EC$4,000 a month the employee's Social Security is EC$200, and the employer adds EC$360 in charges.

At the minimum wage the employee pays no levy.

| Monthly gross pay (EC$) | Employee Social Security 5% (EC$) | Employer charges (EC$) | Employee income tax (EC$) |
| --- | --- | --- | --- |
| 2,167 (about the minimum wage) | 108.35 | 195.03 | None |
| 4,000 | 200.00 | 360.00 | None |
| 6,500 | 325.00 | 585.00 | None |
| 10,000 | 325.00 | 725.00 | None |

The figures are our arithmetic from the rates above. Employer charges are 5% Social Security up to the ceiling, 3% levy and 1% severance fund. The employee's levy is excluded where it depends on the question above, and a real payslip can differ.

## What does a Saint Kitts and Nevis employer file and pay each month?

Register as an employer, deduct the employee's Social Security and levy when you pay, and pay them over with your own shares.

The levy and the severance contribution are due at the end of every month.

1. **Register**: Register as an employer with the Social Security Board and register each employee, who needs a social security number.
2. **Deduct**: Take the employee's Social Security and levy from pay. An employer cannot recover contributions from an employee except by deduction in the way the regulations set.
3. **Record and report**: Record wages and contributions for each pay period, send the statement of wages, and send a nil return where nothing is payable.
4. **Pay over**: Pay the levy and the severance contribution at the end of every month, with the statement of wages. The Board collects both for the Comptroller and the Labour Commissioner.

The employer tells the Board whenever an employee leaves. Severance contributions paid late carry a penalty of 10%, and 1% for each further 30 days after the first 30. The employer's severance contribution counts as a business expense for company income tax.

## How does Teamed help with Saint Kitts and Nevis payroll?

Teamed's **real HR and legal experts** check the right route for your Saint Kitts and Nevis hire first: employer of record, contractor or your own entity, and then map who files and pays each of the duties above.

Every statutory cost is itemised, so you see each line.

Pricing has no hidden costs, and **real HR and legal experts** come on every plan.

The check is part of every plan and comes before any contract is signed. Contractor, employer-of-record and own-entity routes run on **one platform**, so a change of route does not mean a change of provider.

Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to model total cost including employer charges before the first offer goes out. EOR is the right model for a first hire in many countries, **until it isn't**.

## Frequently asked questions

Do Saint Kitts and Nevis employees pay income tax?

No. The Inland Revenue Department says income tax on individuals was abolished in 1980. Employees still pay 5% Social Security and, above a low-earner exemption, the Housing and Social Development Levy.

What is the Social Security rate in Saint Kitts and Nevis?

In the latest regulations we could read, 5% from the employer and 5% from the employee for people aged 16 to under 62, on wages up to EC$6,500 a month. We confirm the current rates and ceiling with the Board before the first payslip.

What is the Housing and Social Development Levy?

A levy on wages. The employer pays 3% of all wages, and the employee pays nothing up to EC$27,040 a year, then 3.5%, 10% and 12% in higher bands. The Social Security Board collects it.

What happens if an employer pays late?

Social Security carries a fine of 5% of the unpaid amount for each month or part of a month. The levy and the severance contribution each carry a penalty of 10%, and 1% for each further 30 days after the first 30.

A note from Tom Price-Daniel

Saint Kitts and Nevis has no income tax on pay, runs three charges through one office, and collects the levy and severance fund at the end of every month.  
The traps are the ceiling, which has stayed at EC$6,500 a month in the schedule we could read, and the way the levy bands apply.  
Deduct the employee's shares when you pay, and map who files before the first payslip.

Tom Price-Daniel · Co-founder, Teamed

## Keep reading

- [Hiring in Saint Kitts and Nevis, overview](/country-hiring-guides/saint-kitts-and-nevis)
- [Saint Kitts and Nevis hiring guide](/country-hiring-guides/saint-kitts-and-nevis/hiring-guide)
- [Saint Kitts and Nevis termination and severance](/country-hiring-guides/saint-kitts-and-nevis/termination-and-severance)
- [Saint Kitts and Nevis cost breakdown](/country-hiring-guides/saint-kitts-and-nevis/cost-breakdown)
- [Saint Kitts and Nevis EOR vs entity](/country-hiring-guides/saint-kitts-and-nevis/eor-vs-entity)
- [Hiring contractors in Saint Kitts and Nevis](/contractor-hiring-guides/saint-kitts-and-nevis)
- [What is an Employer of Record?](/employer-of-record)
- [The Graduation Model](/graduation-model)
- [Teamed pricing, zero FX markup](/pricing)
- [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator)

A note on this page.

This is a guide, not legal, tax or accounting advice. The figures on this page were read from official sources on 22 October 2026. They come from the Protection of Employment Act (Cap. 18.27), the Labour (Minimum Wage) Act (Cap. 18.19) with the 2024 and 2025 Orders that change its schedules, the Protection of Wages Act, the Holidays with Pay Act, the Social Security Act (Cap. 22.10) with its regulations, the Housing and Social Development Levy Act (Cap. 20.21) as amended in 2024 and 2025, the Immigration Act, the Recruiting of Workers Act (Cap. 6.05) and the Inland Revenue Department. Several of these Acts are published only in revised editions dated 2002 to 2017, and the start date of the July 2025 minimum wage comes from government announcements rather than the Order. The Social Security Board website could not be reached, so we confirm the current contribution rates and earnings ceiling with the Board before the first payslip. Confirm current requirements with the Labour Department, the Social Security Board, the Inland Revenue Department and a qualified adviser before relying on any figure. Sources:

[Social Security Act, Cap. 22.10, with the Contributions and Benefits Regulations](https://lawcommission.gov.kn/wp-content/documents/Act17TOC/Ch-22_10-Social-Security-Act.pdf)

,

[Housing and Social Development Levy Act, Cap. 20.21](https://lawcommission.gov.kn/wp-content/documents/Act17TOC/Ch-20_21-Housing-and-Social-Development-Levy-Act.pdf)

,

[Housing and Social Development Levy (Amendment) Act 2025, Act 14 of 2025](https://lawcommission.gov.kn/wp-content/documents/Annual-Laws/2025/ACTs/Act-14-OF-2025-The-Housing-and-Social-Development-Levy-Amendment.pdf)

,

[Protection of Employment Act, Cap. 18.27](https://lawcommission.gov.kn/wp-content/documents/Act17TOC/Ch-18_27-Protection-of-Employment-Act.pdf)

,

[Inland Revenue Department, corporate income tax page](https://www.sknird.com/corporate-income-tax/)

,

[Income Tax Act, Cap. 20.22](https://lawcommission.gov.kn/wp-content/documents/Act17TOC/Ch-20_22-Income-Tax-Act.pdf)

.