What the 2026 Income Tax Threshold Change Means for Your Payslip
From April 1, 2026, the threshold moves to J$1,902,360. This article breaks down exactly how it changes your monthly take-home.
By Michael T for OurJa
Every April, the Jamaican government adjusts the income tax threshold, which is the amount of annual income you earn free of PAYE income tax. Effective April 1, 2026, the threshold increased from J$1,799,376 to J$1,902,360 per year. This guide explains what that means for your actual monthly pay.
What is the Tax Threshold?
The tax-free threshold is the amount of annual income on which you pay zero PAYE income tax. Only income above this amount is subject to tax: 25% up to J$6 million and 30% on amounts above that. The threshold acts as a tax exemption for lower and middle earners.
The 2026 Numbers
| Period | Annual Threshold | Monthly Threshold |
|---|---|---|
| Before April 1, 2026 | J$1,799,376 | J$149,948 |
| From April 1, 2026 | J$1,902,360 | J$158,530 |
| Increase | +J$102,984/year | +J$8,582/month |
What It Means for Your Pay
The increase in the threshold means more of your income is shielded from PAYE tax. If you earn above the threshold, your PAYE bill decreases and your take-home pay increases. Below are some examples.
| Monthly Gross | Old PAYE (Jan to Mar) | New PAYE (Apr to Dec) | Monthly Saving |
|---|---|---|---|
| J$100,000 | J$0 (below threshold) | J$0 (below threshold) | J$0 |
| J$150,000 | J$0 (below threshold) | J$0 (below threshold) | J$0 |
| J$200,000 | J$12,613 | J$10,368 | +J$2,245 |
| J$300,000 | J$37,613 | J$35,368 | +J$2,245 |
| J$500,000 | J$87,613 | J$85,368 | +J$2,245 |
The saving is the same regardless of salary: J$2,245/month for all earners above the new threshold. Everyone above the threshold benefits by the same amount. The tax on the extra J$8,582/month of threshold at 25% equals J$2,145. Rounding differences may apply.
Timeline of Recent Changes
| Effective Date | Annual Threshold | Monthly Threshold |
|---|---|---|
| Jan 2024 | J$1,500,096 | J$125,008 |
| Apr 2024 | J$1,700,088 | J$141,674 |
| Apr 2025 | J$1,799,376 | J$149,948 |
| Apr 2026 | J$1,902,360 | J$158,530 |
| Apr 2027 (projected) | J$2,003,496 | J$166,958 |
What About NIS, NHT, and Education Tax?
The 2026 threshold change only affects PAYE income tax. NIS (3%), NHT (2%), and Education Tax (2.25% of statutory income) are not affected by the threshold and are deducted from all employees regardless of salary level.
What If Your Employer Hasn't Updated Your Payslip?
Your employer's payroll system should be updated by April 2026 to use the new threshold. If your April payslip shows the same PAYE as March, ask your HR or payroll department to verify. The updated threshold must be applied from April 1.
If your employer deducts too much PAYE and fails to correct it, you are entitled to a refund. Contact TAJ to file a claim. You have up to 6 years to do so.
Related OurJa guides: Understanding Your Jamaican Payslip, How Pension Contributions Cut Your Tax Bill.
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For informational purposes only. Not legal or financial advice. Always verify with the relevant Jamaican agency.