Dominicans to Keep More of Their Pay Under New 2027 Tax Plan

Dominica announced on Tuesday the biggest income tax cut in its history. It replaces the country’s tiered tax system with a flat 10% income tax rate beginning January 1, 2027. 

The announcement was made by Finance Minister Dr. Irving McIntyre during the presentation of the country’s 2026-2027 National Budget. Under the reform, the existing income tax rates of 15%, 25% and 35% will be abolished.

“It is the most significant income tax relief ever granted to the people of Dominica,” Dr McIntyre said. “It will deliver meaningful savings to workers and make our tax system simpler and fairer.”

The personal tax-free threshold will remain at $30,000 Eastern Caribbean dollars annually, which is equivalent to approximately $22,319 Belize dollars. This means individuals earning that amount or less will continue to pay no personal income tax. 

Dr. McIntyre said the reform is intended to simplify the tax system while giving workers more disposable income. He said, “It is the most significant income tax relief ever granted to the people of Dominica. It will deliver meaningful savings to workers and make our tax system simpler and fairer.” 

The reform builds on two decades of tax relief. 

The government also announced that from 2027, residents and non-residents will only be taxed on income earned within Dominica. Income generated outside the country will no longer be subject to Dominican income tax.