By Stafflow Editorial Team · Published 2026-09-25 · Last verified September 25, 2026
Key points
- Employment income of BZD $29,000 or less is not chargeable to income tax under the current rule.
- Above BZD $29,000, the basic deduction is BZD $20,000.
- Income above $29,000 through $32,000 receives a tapering tax credit.
- The employee income tax rate is 25% of chargeable income.
What changed for Belize employee income tax?
The Income and Business Tax (Amendment) Act, 2024 changed the employee income-tax rules effective January 1, 2025. For employed individuals resident in Belize, annual income at or below BZD $29,000 is not chargeable to income tax.
When annual income exceeds BZD $29,000, the current basic deduction is BZD $20,000. The remaining chargeable income is taxed at 25%.
How the $29,000 to $32,000 transition works
For annual income above BZD $29,000 but not above BZD $32,000, the law provides a tax credit. The credit starts at BZD $2,250 and is reduced by 75% of the amount by which annual income exceeds BZD $29,000.
This transition prevents a sudden tax cliff immediately above the exemption threshold. At BZD $32,000 the transitional credit reaches zero.
Example: BZD $30,000 annual employment income
Chargeable income is BZD $10,000 after the BZD $20,000 basic deduction. Gross tax at 25% is BZD $2,500. The transitional credit is BZD $1,500, leaving estimated annual income tax of BZD $1,000 before considering any other applicable reliefs or circumstances.
Example: BZD $40,000 annual employment income
Chargeable income is BZD $20,000. At 25%, estimated annual employee income tax is BZD $5,000. The transitional credit does not apply above BZD $32,000.
What employers should keep in mind
- PAYE withholding should reflect current law and the employee’s relevant tax circumstances.
- Variable pay, multiple employers, additional reliefs, and year-end reconciliation can change the final amount.
- Use Belize Tax Service guidance and IRIS Belize for official filing and account information.
- Keep payroll calculations and employee tax records auditable.
Official sources
Useful Stafflow tools
Related Belize payroll guides
Important note
This guide is general educational information, not tax or legal advice. Rules can change and individual circumstances matter. Verify current requirements with the relevant Belize authority or a qualified professional before acting.