As part of our payroll service, Deel withholds all taxes and statutory deductions in accordance with your local legal requirements.
Many countries have progressive tax systems - meaning the more you earn, the more you pay.
There are several common reasons why your tax rate may have changed from one pay period to the next, including but not limited to:
Legislative changes - there may have been recent legislative changes in your country of employment that impacts the base statutory tax rate for your salary range. This may result in a decrease (or possibly an increase) of your take home pay.
Relocation - In many countries, there are statutory taxes depending on your address. Moving to a different state, region, or province may change your tax obligations due to statutory regional taxes.
Salary change- If you received a promotion or a pay increase, you may have entered into a higher tax bracket and therefore your statutory tax rate may change.
Household status change - this can include things like marriage and childbirth, and can impact your tax liabilities
- Payroll adjustments - Adjustments like bonuses, allowances, and expenses may be taxed; and the tax rate for adjustments may vary depending on both your location and the adjustment amount.