Lawmakers to approve amendments to Income Tax Act on Tuesday
KINGSTON, Jamaica — Lawmakers in the House of Representatives are expected to approve amendments to the Income Tax Act on Tuesday, paving the way for the second phase of the Government’s promised increase to the personal income tax threshold.
Finance and Public Service Minister, Fayval Williams, announced last March during the 2025/26 Budget Debate that the threshold will be increased gradually from the $1.7 million to approximately $2 million over the next three years.
The plan outlines an incremental rise that began on April 1, 2025, when the threshold moved to $1.8 million, and is expected to increase to $1.9 million this coming April, before ultimately reaching $2 million in April 2027.
The current round of adjustments builds on the major increase implemented by former Finance Minister Dr Nigel Clarke in April 2024, when the threshold was raised from $1.5 million to $1.7 million. That change, which formed part of the 2024/25 Budget, represented the largest single movement of the tax-free band since the reform programme began in 2016.
Tuesday’s amendment is expected to provide the legal underpinning for the next adjustment due in April, ensuring the schedule announced by the finance minister remains on track. If approved, the change will mark another step towards the Government’s target of a $2-million tax-free threshold by 2027.
