🇵🇬 How tax works
in Papua New Guinea.
2026 · National income tax guide
The calculation, explained.
The resident annual schedule has a PGK20,000 tax-free band and rates up to 42%.
Dependant rebates, deductible expenses and superannuation are excluded. The simplified Small Business Tax regime excludes professional services; do not assume a doctor can use its 2% turnover rate.
Doctors: employment and independent practice
The Papua New Guinea comparison is an ordinary resident employment scenario. We have not yet verified a doctor-specific independent-practice regime for this country. Do not apply Indonesia’s NPPN 50% here or enter clinic turnover as salary. Practice deductions, professional contributions and mixed income require additional local research.
Tax brackets · PGK
Each rate applies only to the income inside that band.
| Taxable income slice | Rate |
|---|---|
| 0 – 20,000 | 0.0% |
| 20,000 – 33,000 | 30.0% |
| 33,000 – 70,000 | 35.0% |
| 70,000 – 250,000 | 40.0% |
| Above 250,000 | 42.0% |
Your worked example
Based on your €100,000 annual gross salary estimate, equivalent to PGK 505,909.
- 1. Annual input
- PGK 505,909
- 2. Custom deductible expenses
- − PGK 0
- 3. Modeled allowance / base deduction
- − PGK 0
- 4. Modeled taxable base
- PGK 505,909
| Taxed portion | Rate | Tax |
|---|---|---|
| PGK 20,000 | 0.0% | PGK 0 |
| PGK 13,000 | 30.0% | PGK 3,900 |
| PGK 37,000 | 35.0% | PGK 12,950 |
| PGK 180,000 | 40.0% | PGK 72,000 |
| PGK 255,909 | 42.0% | PGK 107,482 |
- 5. Modeled tax credits (capped at tax due)
- − PGK 0
- 6. Included additional tax
- PGK 0
- 7. Income tax
- PGK 196,332
- Effective rate = tax ÷ annual input
- 38.8%
- After income tax, before other deductions
- PGK 309,577
Sources & assumptions
Sources checked 12 October 2026. The schedule's tax year is shown above; checking a source does not make a simplified model a complete payroll calculation.
Assumptions: single, no dependent children, age 30+, full-year resident, ordinary employment income only. No capital gains, dividends, special expatriate relief or double-tax treaty adjustments.