How is income tax calculated in Papua New Guinea?
Residents pay no tax on the first PGK 20,000 of taxable income. Income above that is taxed at 30%, 35%, 40% and finally 42% above PGK 250,000. Non-residents pay 22% on the first PGK 20,000 and the same rates above it.
PNG citizen employees contribute 6.0% of gross basic salary to an authorised superannuation fund. These are after-tax contributions, so they do not reduce taxable income. Superannuation is not currently required for non-citizens.
The tax year is generally 1 January to 31 December.
What is the income tax rate in Papua New Guinea?
| Taxable income | Rate |
|---|---|
| PGK 0 – PGK 20,000 | 0% |
| PGK 20,000 – PGK 33,000 | 30% |
| PGK 33,000 – PGK 70,000 | 35% |
| PGK 70,000 – PGK 250,000 | 40% |
| Over PGK 250,000 | 42% |
What mandatory salary deductions apply?
- Superannuation (employee, PNG citizens): 6% of pay (citizens only).
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: PGK 13,000.00 a month
An employee earning 13,000 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | PGK 13,000.00 | PGK 156,000.00 |
| Income tax | PGK 4,270.83 | PGK 51,250.00 |
| Compulsory contributions | PGK 780.00 | PGK 9,360.00 |
| Take-home pay | PGK 7,949.17 | PGK 95,390.00 |
Effective income tax rate 32.9%; all deductions 38.9%.
Frequently asked questions
How much can I earn tax-free?
Residents pay no tax on the first PGK 20,000 of taxable income a year.
Do foreign employees pay superannuation?
Not currently; it is compulsory for PNG citizens and voluntary for non-citizens.
Is superannuation deducted before tax?
No. The 6% employee contribution is an after-tax contribution.
Official sources
- PwC Worldwide Tax Summaries (reviewed 23 September 2026): Papua New Guinea - Individual - Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 23 September 2026): Papua New Guinea - Individual - Other taxes. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 23 September 2026): Papua New Guinea - Individual - Tax administration. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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