In a move set to benefit workers, parents, and individuals with multiple income streams, Finance Minister Dr. Ashni Singh has announced significant changes to the income tax structure as part of the 2025 Budget measures.

These measures, aimed at incentivising productivity and rewarding hard work, promise to provide substantial relief for many households across the country.

A key highlight of the 2025 tax reform is the increase in the income tax threshold.

Effective from the 2025 tax year, the threshold will rise to $130,000 per month, up from the previous threshold of $100,000 — itself an increase from $85,000 in 2024.

This means that individuals earning $130,000 or less will no longer be subject to income tax, while those earning above this amount will only pay tax on income exceeding the threshold.

The government estimates that these changes will result in an additional $8.5 billion in disposable income for workers nationwide.

Further, in 2025, the first $50,000 earned from overtime work each month will be exempt from taxes.

This measure is designed to ensure workers are fairly rewarded for their additional efforts. The government anticipates that this change will result in a cost of over $600 million annually.