Jamaica
Individual - Deductions
Last reviewed - 12 August 2025Personal 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 |
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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 |
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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 |
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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 |
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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 ).