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Income Tax Threshold Increase and Tax Credit

March 30, 2024
Income Tax Threshold Increase and Tax Credit
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The Full Story

In April 2024, the threshold for personal income tax will be increased to J$1,700,088 from J$1,500,096 and a tax credit will be given to Jamaicans earning less than $3 million per annum. The threshold refers to the part of an individual’s income which bears no tax; 25 per cent is deducted from the portion of the salary that remains.

Who is Taxed?

Income earned in the country is taxed, regardless of the origin of the funds and residency status. Individuals earning more than $1.7 million per year will pay income tax; none is deducted where persons earn $1.7 million or less per year.

How is Income Taxed?

Income tax is deducted from salary at each pay cycle. This can be weekly, fortnightly or monthly. If the salary is fixed, the taxable income will be consistent with each salary. The taxed amount will vary if there is additional income from overtime, incentives or other ad-hoc earnings.

Self-employed persons are also required to file and pay income tax.

Reverse Tax Credit

Every registered taxpayer who earns less than $3 million per year, will benefit from the implementation of a reverse tax credit. The reverse tax credit will provide a refund of $20,000 this fiscal year.

For additional information, contact:

Tax Administration Jamaica

Address: 1-3 King Street, Kingston

Email: taxhelp@taj.gov.jm

Telephone: 876-922-7919

Website: www.jamaicatax.gov.jm

Facebook, X: @jamaicatax

IG: @jamaicataxonline

Last Updated: April 2, 2024

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