Trinidad and Tobago has a non-negligible proportion of its population in poverty. After constructing a household consumption aggregate adjusted for price and household composition differentials, we measured the rate of poverty and examined the determinants of poverty and household welfare on the basis of the Survey of Living Conditions 2005 data set. Relevant econometric techniques were adopted to identify the probability of being poor for all households and household welfare for a sample of only poor households. Our findings indicate that the poverty rate is higher than the existing estimates and socioeconomic and demographic characteristics play significant roles in poverty and household welfare. Copyright © 2011 John Wiley & Sons, Ltd.