Revising Haiti's personal income tax (IRPP) schedule: theoretical foundations and reform options
- The IRPP schedule in force dates from the decree of September 29, 2005; a DGI notice of February 2019 raised the first bracket for subcontracting-sector workers (segment F).
- The zero-rate threshold is set at 2.5 times the poverty line.
- Scenario 3, the starting point, would reduce withholding on public-sector salaries by 80% from the September 2025 level.
- Scenario 3d, validated by the Minister in May 2026, taxes income at 0% up to 360,000 gourdes, 12% to 540,000, 18% to 1,080,000, 25% to 2,160,000 and 30% above.
- Scenario 3d yields simulated withholding of 1,620.8 million gourdes, 71% below the current schedule.
- The new schedule is to enter the Code général des impôts on October 1, 2026, with withholding systems adapted and employers informed.
Technical note of July 2026 prepared by the MEF's Comité de Politique Fiscale on the personal income tax (IRPP) schedule set by the decree of September 29, 2005. It reviews the principles of a tax schedule (ability to pay, vertical and horizontal equity, simplicity), measures the erosion of the 2005 brackets by inflation, and anchors the zero-rate threshold on the poverty line, using a factor of 2.5. Scenarios are costed using income tax withheld on public-sector salaries in September 2025. The reference scenario 3 would cut withholding by 80%; successive variants 3a to 3d reduced the loss. In May 2026 the Minister validated scenario 3d: 0% up to 360,000 gourdes, then 12%, 18% and 25%, and 30% above 2,160,000 gourdes, with simulated withholding of 1,620.8 million gourdes, 71% below the current schedule. The new schedule is to enter the Code général des impôts on October 1, 2026.
How to cite
Ministry of Economy and Finance (MEF), 2026, Revising Haiti's personal income tax (IRPP) schedule: theoretical foundations and reform options, https://www.mef.gouv.ht/