Jamaican workers are to see an increase in their disposable income, with the increase in the income tax threshold which took effect on April 1.

The income tax threshold or tax-free amount was increased to $1,902,360.

The adjustment was announced by Finance Minister, Fayval Williams during her 2025 budget presentation.

The annual income tax threshold is being progressively increased over three years, with a target of reaching $2 million at the next increase.

Chief Corporate Communications Officer at TAJ, Meris Haughton says the increase represents the second phase of the planned increases and results in higher periodic tax-free amounts for both employed and self-employed individuals.

Ms. Haughton says the increase means savings for Jamaicans.

TAJ is 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.

TAJ is encouraging taxpayers and employers to take note of the changes and to adjust their financial planning and payroll system accordingly.