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Bermuda Tax Guide Hub 2026: Income Tax, Rates & Calculator

Daniel · CountryTaxCalc Updated June 2026
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KEY INSIGHT
Bermuda's hidden cost: 0% income tax but payroll tax runs 10.25% (typically 5.5% employee share). Work permits: $5,700-$35,900/year. A $150,000 earner pays ~$8,250 payroll tax. No capital gains, VAT, or withholding tax. 15% corporate tax from 2025. Very high cost of living.
At a glance

Key Facts

Personal Income Tax
0% — None
Payroll Tax (employee share)
5.5% of salary (capped at BMD $1,000,000/year remuneration)
Payroll Tax (combined)
~10.25% total (employer pays remainder ~4.75%)
Introduction

Bermuda has no personal income tax, capital gains tax, or withholding tax—but there's a hidden cost. Payroll tax runs 10.25% total (split employer/employee, typically 5.5% employee). Work permits are expensive: $5,700-$35,900/year depending on job category. Social insurance adds ~$35/week each for employee and employer. No VAT or sales tax. Bermuda charges 15% corporate income tax from January 2025 (OECD Pillar Two compliance). Property is taxed via ARV (Annual Rental Value). A $150,000 earner pays roughly $8,250 payroll tax (~5.5%). Bermuda's high cost of living offsets some tax savings. Use our calculator to compare with taxable jurisdictions.

This hub links to every Bermuda tax guide and calculator on CountryTaxCalc — covering income tax rates, and tools to calculate your take-home pay.

Section 01

Bermuda Income Tax Calculator

Bermuda applies No personal income tax. Use the calculator to estimate your take-home pay after income tax:

Section 02

Related Hubs

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FAQ

Frequently Asked Questions

Does Bermuda have any income tax?

No personal income tax exists in Bermuda—no tax on salary, dividends, interest, or capital gains. However, payroll tax applies: total 10.25% (employers pay base rate ~5%, employees pay ~5.5% depending on tax year). This is Bermuda's main revenue source. Still significantly lower than most developed countries' income tax.

What is Bermuda's payroll tax and how is it split?

Bermuda's payroll tax totals approximately 10.25% of salary. Employers pay the base rate (around 5%) while employees pay the remainder (~5.5%). Some employers absorb the full amount as a benefit. Applies to all employees working in Bermuda. Annual remuneration ceiling is $1 million—no tax on earnings above this.

How expensive are Bermuda work permits?

Work permits are mandatory for non-Bermudians and costly: Standard work permit fees range from $5,700 to $35,900 annually depending on job category. Employers typically pay these fees. Global Work Permit Holders (GWPH) program for remote workers costs $4,000 for 1 year. Permanent Residency Certificate: $100,000+. These costs add significantly to employment expenses.

What is Bermuda's new corporate income tax?

Bermuda introduced 15% corporate income tax effective January 1, 2025, to comply with OECD Pillar Two global minimum tax rules. Applies to multinational enterprises with global revenue above €750 million. Smaller businesses remain untaxed. Bermuda shifted from pure tax haven to OECD-compliant jurisdiction to maintain access to global markets.
Disclaimer:This hub provides general information about Bermuda taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official Bermuda tax authority or a qualified local tax adviser. This is not tax or legal advice.
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