Jamaica to increase income tax threshold to $2 million over three years

Jamaicans will soon benefit from an increase in the income tax threshold, allowing them to take home more of their earnings.

Finance Minister Fayval Williams announced during the budget debate today that the government will gradually raise the tax-free income threshold to $2 million over a three-year period, starting April 1, 2025.

Prime Minister Andrew Holness later shared the news on social media, emphasizing the government’s commitment to easing the tax burden while maintaining fiscal responsibility.

How the income tax threshold will increase

The adjustment will be implemented in three phases:

April 1, 2025 – Threshold rises to $1.8 million

April 1, 2026 – Increases to $1.9 million

April 1, 2027 – Final increase to $2 million

Holness, in his tweet, highlighted the structured rollout, stating that the government is ensuring taxpayers “don’t have to guess and spell” about future increases. He described the move as both “caring” and “responsible.”