KINGSTON, Jamaica— The Tax Administration Jamaica (TAJ) is reminding employers and tax payers that the income tax threshold (tax-free amount) has increased to $1,902,360, up from $1,799,376 effective April 1, 2026.

According to the TAJ in a media release, as the new threshold took effect on April 1, 2026, the effective tax-free amount for the full 12 months of 2026 is $1,876,614.

“This adjustment is in keeping with the announcement made by the Minister of Finance and the Public Service, 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,” 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.