Papua New Guinea Personal Income Tax
Detailed personal income tax rates and rules for Papua New Guinea in 2026.
Papua New Guinea uses a progressive income tax system for resident individuals with rates ranging from 22% to 42%. Income up to PGK 12,500 is taxed at 22%, income from PGK 12,501 to PGK 20,000 at 30%, income from PGK 20,001 to PGK 33,000 at 35%, income from PGK 33,001 to PGK 70,000 at 40%, and income exceeding PGK 70,000 at 42%. Non-resident individuals are taxed at a flat rate of 22% on the first PGK 12,500 and higher marginal rates on additional income. PNG does not have a tax-free threshold. Salary and wages tax is withheld by employers through the PAYE system.
| Income Range (PGK) | Tax Rate |
|---|---|
| K 0 – K 13K | 22% |
| K 13K – K 20K | 30% |
| K 20K – K 33K | 35% |
| K 33K – K 70K | 40% |
| K 70K – K 250K | 42% |
| K 250K+ | 42% |
Filing Deadline
February 28 for individuals; June 30 for companies
Residency Rule
An individual is a resident of PNG if they have their domicile in PNG, unless the IRC is satisfied that their permanent place of abode is outside PNG. A person who is present in PNG for more than 183 days in any 12-month period is also treated as a resident. Residents are taxed on their worldwide income, while non-residents are taxed only on PNG-sourced income.
How Papua New Guinea Income Tax compares
Papua New Guinea’s top personal income tax rate of 42% is the 31st highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Oceania’s regional average of 20.1%.
