Tax in Guernsey

Income tax is a flat 20% on net income after allowances. There is no capital gains tax, no inheritance tax, and no VAT or goods and services tax in the position recorded at the August 2026 review. Property purchases can attract local document duty, as the Revenue Service Open Market Tax Cap conditions illustrate. Do not read the absence of UK stamp duty as an absence of property transaction charges.

The personal allowance for 2026 is £15,200, raised from £14,600. Above £85,000 of income it is withdrawn at £1 for every £5, so higher earners lose it entirely.

Unused allowances transfer between spouses and civil partners. Couples are now taxed independently, each responsible for their own return and payments.

Social security contributions are separate from income tax. Include the position that applies to you in your comparison.

For 2026 the rates are 7.5% for employees, 7.1% for employers, 12.4% for the self-employed and 11.8% for the non-employed, reduced to 3.8% above pension age. The annual upper earnings limit is £196,560.

Guernsey offers statutory caps that any qualifying resident can elect for, without negotiating with anybody. For 2026, unchanged since 2024:

£160,000 on tax on non-Guernsey-source income.

£320,000 on tax on worldwide income.

An Open Market cap may be available to qualifying new arrivals purchasing a Part A Open Market property, subject to document duty, timing and other conditions. Check the official tax-cap guidance and take advice before relying on eligibility.

Two things to understand. If you elect for a cap you receive no personal allowances. And income from Guernsey land and property sits outside the cap and is taxed separately in addition to it.

Individuals who are "resident only" rather than solely or principally resident can elect to pay a standard charge instead. This rose to £50,000 for 2026, from £40,000. It exempts worldwide income from Guernsey income tax but Guernsey-source income remains taxable.

Mortgage interest relief is being phased out: capped at £2,500 for 2026, £1,500 in 2027, £750 in 2028 and nothing from 2029.

Tax on Real Property domestic rates rose 8.3% in 2026.

Consumption-tax policy can change. Check current official decisions and implementation details with Revenue Service rather than planning around a proposal described in an earlier review.

The headline is genuinely attractive and it is not the whole picture. Social security is real money. Tax on Real Property and document duty are real money. GST may well arrive. And compare take-home income with your own spending, using the cost of living page.

What would you enjoy about your ordinary life here alongside the financial picture? The answer can include work, people, interests and time with family, and it will be different for each household.