Income tax threshold increased to $130,000

– tax break for persons working overtime, two jobs

Taxpayers in the public and private sector will breathe a sigh of relief as the government increases the income tax threshold from $100,000 to $130,000.

Income tax threshold is the established amount of money that is taxable. It means once a person earns more than the established amount, they must pay income tax.

This intervention places an additional $8.5 billion in disposable income into the pockets of taxpayers, while removing 22,000 persons from the tax bracket.

Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh made this announcement on Friday as he unveiled the 2025 budget to the National Assembly.

The minister also announced two other significant tax breaks, set to reduce the burdens of thousands of citizens while incentivising hard work.

For persons who work overtime, the first $50,000 of their monthly overtime pay will be tax-free.

Additionally, for persons with a second job, the first $50,000 of their monthly income from the second job will be tax-free.

“These measures reward and incentivise those who work extra, those who do additional jobs and those who work longer hours,” the minister emphasised.

Further, the government announced a reduction in personal income tax rate from 28 per cent to 25 per cent.

This measure will increase the disposable income of more than 100,000 taxpayers and is estimated to return $3.6 billion to their pockets.  

These interventions join a host of other measures implemented by the government since 2020 to inject additional disposable income into the economy.

The 2025 budget was presented under the theme: A secure, prosperous and sustainable Guyana.