TAJ Income Tax Brackets in Jamaica for 2024-2025

In general, Jamaican residents are taxed on their worldwide income whereas non-resident individuals are taxed on Jamaican-sourced income. In the same way, a resident corporation is taxed on its worldwide income and a non-resident corporation is taxed on its Jamaican-sourced income. 

The former Inland Revenue Department (IRD), Taxpayer Audit and Assessment (TAAD) and the Tax Administration Services Departments (TASD) have consolidated to form a single tax authority known as Tax Administration Jamaica (TAJ).

The Income Tax Act provides income tax tables for both individuals and businesses. The Jamaican government reviews taxes annually and periodically. While not all tax rates and thresholds change annually, any alteration will result in the tax tables being changed as well.

How do you calculate income tax? Familiarizing yourself with these tax tables which identify applicable tax brackets and tax rates is essential for effective tax planning and to stay compliant with Jamaican tax laws. Different tax brackets apply depending on the business structure and vehicle used. 

Here you will learn more about:

• headline tax rates 
• personal income tax (PIT) rates for individuals
• pension tax rates for individuals
• corporate income tax rates
• transfer tax rates
• withholding tax rates for residents and non-residents
• general consumption tax rates
• special consumption tax rates

Headline Tax Rates in Jamaica

Personal Income Tax (PIT) Brackets for Individuals in Jamaica 2024-2025

TAJ provides information for several categories of individual taxpayers: farmers, pensioners and seniors, persons with disabilities, the self-employed and students. It is important to familiarize yourself with the obligations applicable to your category and the various sources of income considered for taxation purposes.

The annual tax-free threshold of JMD 1.5 million is available to Jamaican tax-resident individuals. This means individuals who earn over the tax-free threshold, but under JMD 6,000,000, are taxed at a rate of 25%.

Personal Income Tax Due Dates

Corporate Income Tax (CIT) Rates in Jamaica 2024-2025

Corporate Income Tax Due Dates

Transfer Tax in Jamaica

While there is no capital gains tax regime in Jamaica, transfer tax applies. 

Where consideration or market value is paid on the transfer of land, buildings, securities or shares, a transfer tax is imposed at 2% on such transfer. In the case of securities, listed securities transferred on the Jamaica Stock Exchange (JSE) are exempt from transfer tax. 

Transfer tax is also imposed on the estate of any individual domiciled in Jamaica at the time of their death. This applies to all property owned including those owned overseas. Certain transfer tax allowances (such as funeral expenses, mortgage debts and more) and exemptions apply.

Withholding Tax Rates for Residents and Non-Residents in Jamaica

Jamaica is party to approximately 15 tax treaties with several countries, including the United States, United Kingdom, Canada and China. Withholding tax (WHT) varies for non-resident corporations and individuals based on the applicable treaty. WHT must be deducted from chargeable payments made to non-residents and remitted to TAJ within the prescribed timeframes to avoid the imposition of penalties and interest.

General Consumption Tax Rates in Jamaica

Special Consumption Tax Rates

GCT is a value-added tax (VAT) imposed on the supply of goods or services within Jamaica and on the import of goods or services to Jamaica. 

Special Consumption Tax (SCT), however, is imposed at various rates on the importation or local manufacture of prescribed goods. These include certain petroleum products, ethanol, alcoholic drinks, tobacco, and motor vehicles.