Jamaica

Individual - Deductions

Last reviewed - 12 August 2025

Personal deductions

Social security and contributions to pension schemes approved under the Income Tax Act are deductible in determining taxable income, as is interest paid on capital employed in acquiring income.

Approved charitable contributions, restricted to 5% of taxable income, are also deductible.

Standard deductions

There are no standard deductions in Jamaica.

Personal allowances

There are no personal allowances in Jamaica. Jamaica does however grant the following personal income tax annual tax-free threshold to Jamaican tax resident individuals:

Tax-Free
Threshold
Effective
Date
Year of
Assessment
2024
Year of
Assessment
2025
Year of
Assessment
2026
Year of
Assessment
2027
Year of
Assessment
2028
Yearly:     JMD  1,500,096
Monthly:  JMD     125,008
Jan-Mar:
JMD    375,024
Apr-Dec:
JMD 1,275,066
Calendar: 
JMD 1,650.090
Yearly:     JMD  1,700,088
Monthly:  JMD     141,674
1 April 2024 Jan-Mar:
JMD    425,022
Apr-Dec:
JMD 1,349,532
Calendar: 
JMD 1,774,554
Yearly:     JMD  1,799,376
Monthly:  JMD     149,948
1 April
2025
Jan-Mar:
JMD    449,844
Apr-Dec:
JMD 1,426,770
Calendar: 
JMD 1,876,614
Yearly:     JMD  1,902,360
Monthly:  JMD     158,530
1 April 2026 Jan-Mar:
JMD    475,590
Apr-Dec:
JMD 1,502,622
Calendar: 
JMD 1,978,212
Yearly:     JMD  2,003,496
Monthly:  JMD     166,958
1 April 2027 Calendar: 
JMD 2,003,496


There are also exemptions from income tax on the first JMD 250,000 of income for an individual who is aged 65 and over. A person who is 55 years and over who is in receipt of income from an approved superannuation fund or an approved retirement scheme also enjoys an exemption of JMD 250,000  of income from that source and any other source. If the individual is younger than 55 years of age, the exemption is limited to income from the approved scheme not exceeding JMD 250,000.

Business deductions

To the extent not reimbursed, individuals (resident or non-resident) can deduct all expenses that are incurred wholly and exclusively by them in earning their income (e.g. business-related travel, automobile, and entertainment expenses), provided these expenses are not of a capital nature or specifically mentioned in the tax legislation as non-deductible. Expenses for travel to and from work are not deductible.

Fines and penalties

Fines, penalties, and interest arising from tax arrears are not deductible.

Net operating losses

Any claim for deduction of tax losses incurred in a prior year will be capped at 50% of the taxpayer’s chargeable income (before deduction of tax losses carried forward) of the year in which the claim is being made.

This cap will not apply:

  • for the five years of assessment following the first year of operation of a new trade, profession, or business, or
  • where the taxpayer’s gross revenue from all sources for the relevant year of assessment is less than the prevailing GCT turnover threshold (currently JMD 15 million per annum ).