Increase in Income Tax Threshold Now in Effect

• Tax Administration Jamaica (TAJ) is reminding the public that, effective April 1, 2026, the Income Tax threshold (tax-free amount) was increased to $1,902,360, up from $1,799,376.
• This adjustment is in keeping with the announcement made by the Minister of Finance and the Public Service, the Hon. Fayval Williams, during the 2025 Budget Presentation. At that time, it was outlined that the annual Income Tax threshold would be progressively increased over the period 2025 through 2028, with a target of reaching $2,000,000.
• As the new threshold took effect on April 1, 2026, the effective tax-free amount for the full twelve months of 2026 is $1,876,614.
• The second phase of planned increases has raised the periodic tax-free threshold for both employed and self-employed individuals to $36,583.85 weekly, $73,234.90 fortnightly, and $158,530 monthly.
• The phased increase of the personal income tax threshold to $2 million is designed to be a responsible fiscal adjustment, rather than a single massive hit to the budget, in light of the adverse effects of Hurricane Melissa on revenues and the need to increase expenditure to support rebuilding.

(Sources: JIS & NCBCM Research)