Pensioners are required by law to pay income tax.
Once the pension is over the tax threshold then a 25 percent income tax is applied. However the tax threshold varies depending on the age of the pensioner.
See below the break down of the tax thresholds for pensioners within the specified age ranges.
The tax threshold or tax free pay that is applicable as at April 1, 2017 is as follows:
- Pensioners under ages 55 $1,500,096.00 tax free
- Pensioners ages 55 – 64 $1,580,096.00 tax free
- And pensioners ages 65 and over $1,660,096.00 tax free
Therefore, any amount exceeding the stipulated tax threshold mentioned will attract 25% income tax.
NB: All amounts mentioned are the current rates and are subject to change by the Government of Jamaica.