Tax Relief for Pensioners

Come April 1, 2024, an additional 2,046 pensioners will have more disposable income through increases in the Pension Exemption and Age Relief Exemption.

The exemptions will each move from $80,000 to $250,040 and will see more persons in receipt of a pension falling outside of the tax net.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, made the announcement while opening the Budget Debate on March 12.

At present, persons under 55 years receiving a pension from an approved statutory pension scheme or an approved superannuation scheme are entitled to a tax exemption of $80,000 restricted to the pension income only.

If the pensioner is 55 years and over, the $80,000 tax exemption can also be applied to their other sources of income.

This is known as the Pension Exemption.

In addition, individuals 65 years and over, who are in receipt of a pension, are entitled to an Age Relief Exemption of $80,000.

This is in addition to the Pension Exemption, enabling persons 65 years and over to be entitled to a total of $160,000 in exemptions.

Minister Clarke said the Government remains committed to providing further protections for pensioners, which are a vulnerable group.

“We are leveraging macroeconomic stability for the people’s benefit,” he said.