Around 26,000 Jersey taxpayers are being given an extra two years to start paying their frozen 2019 bill.
The Treasury Minister has decided to defer the start of a payment scheme for those who were on Prior Year Basis (PYB) liabilities.
It means they can start instalments in 2027 instead of 2025, and will have until 2043 to settle the whole amount.
In 2020, the government abolished the PYB of paying taxes - where people were paying what they owned in income tax on what they had earned a calendar year earlier.
Ministers said that would help people whose income had been reduced by the Covid lockdown, keeping more money in their pockets.
In 2021, the States agreed a way of recouping the £330m in 2019 tax liabilities that it had frozen.
A repayment scheme was to start on 31 December 2025. The total owed would have needed to be cleared by 31 December 2041.
If the States Assembly approves the Ministers' proposed deferral, the first instalment will become due on 31 December 2027, and the repayment-in-full date will be pushed back to 31 December 2043.
Deputy Elaine Millar says it will help islanders 'with the ongoing concerns surrounding the cost of living'.
"By extending the deadline until 2027, this decision provides affected Islanders with more breathing room to navigate their financial commitments effectively.”
Around 5,000 of a total 31,300 taxpayers have already settled their outstanding bill in full.
Taxpayers could elect to pay the entire sum within 12 months of reaching pensionable age. Subject to States approval, the new deadline for choosing to do that would be 30 September 2026.
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