$1.5M Income Tax Threshold now in effect

The second phase of the two tiered income tax threshold increase announced by the Minister of Finance & the Public Service in the 2016/17 Revenue Measures took effect on April 1, 2017.

This adjustment has resulted in an increase in the threshold or tax-free amount from $1,000,272 to $1,500,096 per annum, broken down on a periodic basis as follows:

Threshold for individuals for year of assessment 2017

Period

Weekly$

Fortnightly$

Monthly$

January 1, 2017 to March 31, 2017

19,236

38,472

83,356

April 1, 2017 to December 31, 2017

28,848

57,696

125,008

The Increase will result in an additional monthly tax savings of $10,413.

While the standard income tax rate for individuals remains at 25%, a tax rate of 30% will continue to be applied to statutory income earned in excess of $500,000 monthly. 

The “effective threshold” for the year of assessment 2017 will be $1,375,140, which is the maximum relief for 2017, as outlined below:-

Calculation of the effective threshold for year of assessment 2017

Period

Threshold ($)

January 1, 2017 to March 31, 2017

$250,068    (1,000,272 ÷ 12 x 3)

April 1, 2017 to December 31, 2017

$1,125,072 (1,500,096 ÷12 x 9)

Persons may contact the TAJ Customer Care Centre at 1-888-Tax-Help (1-888-829-4357) toll-free for further information or assistance.