Increase in income tax threshold now in effect—TAJ

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, the TAJ said.The TAJ outlined that this represents the second phase of the planned increases and results in higher periodic tax-free amounts for both employed and self-employed individuals, as follows: Weekly: 36,583.85 (previously 34,603) Fortnightly: 73,234.90 (previously 69,307.26) Monthly: 158,530 (previously 149,948)It said the latest increase in the income tax threshold will result in savings to individuals of 25,518 annually, or about 490.73 weekly, 981.46 fortnightly and 2,126.5 monthly.Tax Administration Jamaica is also reminding pensioners and golden agers (persons aged 65 and over) that they are entitled to additional exemptions of 250,040 for each category.Accordingly, an individual who receives a pension from an approved pension scheme and is also 65 years or older will benefit from a combined tax-free income of 2,376,654 in 2026 before any income tax becomes applicable, the TAJ added.TAJ is encouraging taxpayers and employers to take note of these changes and to adjust their financial planning and payroll system accordingly.