Gov’t to Abolish Income Tax for Jamaicans Earning Up To $2M

The government has announced plans to abolish the income tax for Jamaicans earning up to $2 million by 2027.

Finance Minister Fayval Williams says the Holness administration will increase the income tax threshold to $2 million through a phased approach over the next three years.

This means Jamaicans earning two million dollars or less annually will pay no income taxes.

The threshold currently stands at $1.7 dollars. It was last increased in April of 2024.

In another phase in the approach, the government will move the threshold to $1.8 million effective April 1, 2025.

It will then be further adjusted to $1.9 million in April 1, 2026 and a final adjustment to $2 million on April 1, 2027.

This means effective April 1 this year, the current administration has increased the country’s income tax threshold by more than $1.2 million since taking office in 2016.

That’s triple the threshold of $592,000 when the Holness Government took office.

The minister made the income tax announcement in the House of Representatives during her maiden contribution to the Budget Debate.