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

Daniel · CountryTaxCalc Updated October 2026
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KEY INSIGHT
Bermuda's hidden cost: 0% income tax but an employee payroll tax of 0.25% to 12.5% in bands, plus flat social insurance (BMD 39.25/week from 1 August 2026). A BMD 150,000 earner pays about BMD 9,645 payroll tax (~6.4%). Employers pay their own payroll tax too. Work permits: $5,700-$35,900/year. 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)
Progressive bands: 0.25% up to BMD 48,000, 7.75% to 96,000, 10.75% to 200,000, 11.5% to 500,000 and 12.5% to 1,000,000 (bands end at BMD 1,000,000)
Payroll Tax (employer)
Varies by employer class and payroll size (roughly 1% to 9.5%)
Introduction

Bermuda has no personal income tax, capital gains tax, or withholding tax—but there's a hidden cost. Payroll tax is charged to employees in bands from 0.25% to 12.5%, and employers pay their own payroll tax on top. Work permits are expensive: $5,700-$35,900/year depending on job category. Social insurance adds a flat BMD 39.25/week each for employee and employer from 1 August 2026. 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 $9,645 employee payroll tax (~6.4%). 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

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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: employees pay banded rates of 0.25% up to BMD 48,000, 7.75% to 96,000, 10.75% to 200,000, 11.5% to 500,000 and 12.5% to 1,000,000, and employers pay their own payroll tax by employer class. 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 employee payroll tax is progressive, applied band by band to remuneration: 0.25% up to BMD 48,000, 7.75% from 48,001 to 96,000, 10.75% from 96,001 to 200,000, 11.5% from 200,001 to 500,000 and 12.5% from 500,001 to 1,000,000. For example, BMD 150,000 of salary gives about BMD 9,645 (~6.4%). The employer withholds the employee share and separately pays its own payroll tax, which depends on employer class and payroll size. The bands as written end at BMD 1,000,000.

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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