Income Tax Threshold Increases to $1.7 Million; $20,000 Reverse Tax Credit

Effective April 2024, the personal income tax threshold will move from $1.5 million to $1.7 million.

This was announced by Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, while opening the 2024/25 Budget Debate in the House of Representatives on Tuesday (March 12).

Dr. Clarke said the measure will cost approximately $9 billion.

He also announced a reverse tax credit for all Jamaicans who earn under $3 million.

“The reverse tax credit means for every registered taxpayer… who earns under $3 million, the Government will provide a reverse tax credit of $20,000.

“We have a total of 570,000 Jamaicans, today, who contribute to the Jamaican society through statutory deductions, and some through personal income tax who will benefit from this measure,” Dr. Clarke told the House.

The cost of this programme will be $11.4 billion.

The Minister informed that there will be an established system for the processing and payment of the reverse tax credits through Tax Administration Jamaica (TAJ).

“This will take some time to set up before its ready. We want to set it up in a durable way so that this mechanism can be potentially available again in the future,” he informed.