Income tax rate in Jamaica 2022 | See Tax rate Calculator Here

Jamaica’s income tax rate for 2022/2023! Interested in learning more about Jamaica’s income tax rate? This website is for anybody moving to the great country of Jamaica as an international ex-pat, immigrant, or foreigner, as well as anyone looking to invest in or start a business there. It’s crucial that you understand how the income tax calculator in Jamaica operates.

The Jamaican government routinely reviews and updates its laws on taxes, including personal income tax, costs, and exemptions.

Note that all tax rates and thresholds in Jamaica vary every year, but adjustments to tax law to promote strategic economic development in Jamaica might mean that particular regions are targeted for tax reduction or growth assistance (overseas investment in Jamaica, for example, may mean reduced non-resident income tax rates in Jamaica for a period).

The Income tax rates and personal allowances in Jamaica are updated annually with new tax tables published for Resident and Non-resident taxpayers. Here you will get to know the income tax rates in Jamaica, Jamaica’s corporate income tax rate, how to compute income tax in Jamaica, and a lot more in this article.

Income Tax Rates in Jamaica

Individuals are normally subject to income tax at a rate of 25% on chargeable income (up to JMD 6 million per year) minus a yearly tax-free threshold (where applicable). Chargeable income in excess of JMD 6 million per year is liable to income tax at a 30% rate.

The resulting tax tables vary as Jamaica’s tax policy does. Tax tables in Jamaica are simply a list of the applicable tax rates, fixed sums, and/or thresholds used in the calculation of tax; however, the Jamaican tax tables also contain specific notes and guidance on the validity of scenarios (for instance, eligibility requirements for specific tax relief/allowances), notes of the calculation of phaseout of specific tax elements within each taxation group, and notes on the scenarios’ applicability (dividends and corporation tax thresholds in Jamaica for example).

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Income Tax Tables for Jamaican Residents in 2022: Income Tax Rates and Thresholds (Annual)

Tax RateTaxable Income Threshold
0%Income from $0.00 to $ 1,500,096.00
25%Income from $1,500,096.01 to 6,000,000.00
30%Income from $6,000,000.01 and above

Income Tax Rates and Thresholds for Non-Residents in Jamaica in 2022 (Annual)

Tax RateTaxable Income Threshold
0%Income from $0.00 to $ 1,500,096.00
25%Income from $1,500,096.01 to 6,000,000.00
30%Income from $6,000,000.01 and above

Jamaica’s corporate income tax rate

The Corporate Income Tax Rate in Jamaica is a tax levied on businesses. Its value is determined by the net income generated by businesses throughout the course of a single fiscal year. The benchmark we utilize pertains to the highest Corporate Income rate. Corporate tax revenue is a significant source of revenue for the Jamaican government

Jamaica tax calculators

With the help of Jamaican tax calculators, you may figure out your income tax, payroll taxes, and deductions.

This also includes estimates for companies to determine their cost of hiring employees in Jamaica as well as calculations for employees in Jamaica to determine their yearly wage after taxes. The most recent tax rates released by the Tax Administration Jamaica served as the foundation for the Jamaica Tax Calculator and salary calculators (TAJ).

In Jamaica, how do you compute income tax?

With the Jamaica Tax Calculator, you can easily calculate your income tax and payroll deductions such as National Insurance Scheme (NIS), National Housing Trust (NHT), Education Tax (ET), and Human Employment and Resource Training (HEART). This calculator will also compute employer payroll deductions in order to establish the overall cost of employment for employees in Jamaica.

  • Submit your salary.
  • Go to the calculation view menu. You may use this functionality to view various computations for particular settings and gadgets.
  • For access to advanced features, [optionally] click on Advanced.
  • The default tax assessment year is 2022; change it.
  • Include whatever additional income you have.
  • Add pension contributions, which can be either a fixed sum or a percentage of your pay.
  • Select “I am over 65” under “Advanced Feature” to have the over 65 allowances factored into your tax computation.
  • Select “I am retired” under “Advanced Feature” to have your retirement allowance factored into your tax computation.
  • Change the number of hours you work, days in a year, etc. This makes estimates based on hours, days, etc. more accurate.
  • The tax calculator may compute your yearly salary based on an hourly rate, daily rate, weekly wage, etc. by changing the payment period. The yearly salary is used by default.
  • The tax computation is then yours to print or sends to yourself for future use.

In Jamaica, how is PAYE tax calculated?

PAYE (Pay As You Earn) – 25% of Taxable Earnings • NHT (National Housing Trust) – 2% of Gross Earnings • Education Tax (ED Tax) – 2% of gross earnings after NIS, Superannuation, and FSSU deductions. • National Insurance Scheme (NIS) – 2.5% of total earnings up to $1 million.

Are taxes in Jamaica high?

From 2004 to 2020, the personal income tax rate in Jamaica averaged 26.76 percent, with a peak of 35 percent in 2010 and a low of 25 percent in 2005.

In Jamaica, who is excused from paying income tax?

Personal allowances are not available in Jamaica. The first JMD 1,500,096 of a Jamaican tax resident individual’s statutory income, on the other hand, is tax-free. There are also exemptions from income tax on the first JMD 80,000 for people aged 65 and over.

Earnings from employment

Individuals who are resident but not domiciled in Jamaica are taxed on emoluments (salary, living allowances, benefits in kind, use of company cars, etc.) received for work done for or related to Jamaica, regardless of where payment is made or whether the emoluments are returned to Jamaica.

Employee benefits, whether in cash or in kind, are taxed. The taxable advantage from the private use of a corporate automobile ranges from JMD 30,000 to JMD 140,000 per year and is determined by the cost, age, and proportion of private usage.

Tax equalization is the reimbursement of excess tax paid beyond the tax that would be charged on the same amount of income in the recipient’s home country.

Interest income

A 25% income tax is taken at source on gross interest paid to Jamaican citizens (individuals and corporations) by a ‘designated person.’ Commercial banks and other financial entities are examples of prescribed individuals. The interest is taxable at the appropriate rates (25%/30%), with withholding tax (WHT) carried as a credit.

Interest paid by a resident to a non-resident is subject to WHT of 25%. (unless a lower rate of withholding is applicable by virtue of tax treaty protection available).

Do you have any more questions about the Jamaican income tax rate? Please leave your comments in the space below, and remember to bookmark our page to get the most up-to-date information.

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SYLVESTER AUGUSTUS, AKWA IBOM STATE, NIGERIA CONTACT: [email protected]

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