Dominica to move to a flat 10% income tax from January, keeping EC$30,000 tax-free allowance

ROSEAU, Dominica. Dominica will replace its existing personal income tax structure with a single rate of 10 per cent from January 1, 2027, while keeping the first EC$30,000 of income completely tax free.

Prime Minister Dr Roosevelt Skerrit announced the change in his address marking the 48th anniversary of Dominica's independence, as he set out measures intended to ease pressure on household budgets.

Under the reform, income above the EC$30,000 threshold will be taxed at the single 10 per cent rate. The change is due to take effect at the start of 2027, giving individuals and businesses time to prepare.

Cost-of-living pressures

Skerrit attributed rising living costs partly to disruption in international supply chains and global inflation, and acknowledged that families were having to make difficult choices.

"I hear your concerns. I understand your anxieties. And I want you to know that your struggles are not lost on me as your Prime Minister," he said.

He pointed to other measures intended to lower household spending, including waiving duties on essential goods and household items when prices rise, and the removal of a tax on imported goods and customs charges from October 1, 2026. He also highlighted an increase in the minimum wage for lower-paid workers.

"A responsible government does not offer excuses. It delivers relief," Skerrit said.

The announcement comes as Dominica approaches its 50th anniversary of independence in 2028, with the government naming better living standards, productivity and opportunities for citizens as priorities for the years ahead.