Country Hub · Bermuda · 2026

Bermuda

0% personal income tax · 0.25%-12.5% employee payroll tax · No capital gains tax · No inheritance tax · World-class reinsurance hub · US dollar parity (BMD = USD)

0% — Bermuda has no personal income tax

Personal Income Tax

Progressive bands on gross wages: 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; this is the primary personal tax mechanism and replaces the concept of income tax

Payroll Tax (Employee)

Varies by employer class and payroll size (roughly 1% to 9.5%)

Payroll Tax (Employer)

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Bermuda Tax Facts

— 2026

Personal Income Tax

0% — Bermuda has no personal income tax

Payroll Tax (Employee)

Payroll Tax (Employer)

Varies by employer class and payroll size (roughly 1% to 9.5%)

Capital Gains Tax

0% — no capital gains tax

Inheritance / Estate Tax

0% — no inheritance or estate tax

Land Tax

Charged on Annual Rental Value (ARV) of property; significant cost for homeowners and landlords

Currency

Bermudian Dollar (BMD) — pegged 1:1 to the US Dollar; USD is widely accepted

OECD Pillar Two (QDMTT)

Effective 2025 for large multinationals with global revenue above €750 million only; does NOT affect individuals or small businesses

Quick Country Comparison

— at BMD 100,000

Country	Take-home	Eff. Rate	vs Bermuda
Bermuda	BMD 91,159	~8.8%	—
Cayman Islands	BMD 95,000	5%	+BMD 3,841
United Kingdom	BMD 72,000	~28%	−BMD 19,159
USA (California)	BMD 68,000	~32%	−BMD 23,159

Bermuda: no income tax; figures include employee payroll tax (banded), flat social insurance and the employee half of the hospital premium (BMD = USD 1:1 peg). USA (California): federal + state income tax + FICA. UK: income tax + National Insurance. Cayman Islands: 0% income tax, with the 5% employee pension (about BMD 5,000) deducted. BMD 100,000 = $100,000 USD. Illustrative — not tax advice.

Want your exact figures? Use the full Bermuda calculator →

Comparison Guides

See how Bermuda's low-tax environment compares to the US, UK, and other offshore centres.

Bermuda vs Cayman Islands Two leading offshore financial centres compared

Bermuda vs USA Tax Comparison Moving from the US to Bermuda — what changes?

Bermuda vs UK Tax Comparison British Overseas Territory with 0% income tax

Salary Guides

Bermuda uses the Bermudian Dollar (BMD), which is pegged 1:1 to the US Dollar — USD is accepted everywhere. Bermuda has no personal income tax, but employees pay a banded payroll tax of 0.25% to 12.5% on gross wages. This is the primary personal tax mechanism. Bermuda is consistently ranked among the most expensive places to live in the world, with housing, groceries, and dining all significantly more expensive than comparable US cities. The island is a major hub for reinsurance and Insurance Linked Securities (ILS), attracting high-earning finance professionals who benefit significantly from the 0% income tax.

Moving from Bermuda

Bermuda is a British Overseas Territory with English common law. US citizens moving to Bermuda must still file US tax returns (US taxes citizens on worldwide income) but may claim the Foreign Earned Income Exclusion (FEIE). Bermuda has no path to permanent residency or citizenship for most expats — most live on work permits tied to their employer. The island has no income tax treaty with the US or UK. High earners in reinsurance, ILS, and asset management are the primary beneficiaries of the tax-free environment. Cost of living is extremely high: expect to pay $3,000–$6,000 per month for a one-bedroom apartment in Hamilton.

2026 Bermuda Tax Changes

QDMTT enacted for large multinationals — effective 2025 — Bermuda enacted a Qualified Domestic Minimum Top-up Tax (QDMTT) under the OECD Pillar Two global minimum tax framework, effective for fiscal years starting on or after 1 January 2025. This applies only to multinational enterprise groups with global consolidated revenue above €750 million. It does NOT affect individual employees, small businesses, or the reinsurance industry generally.
No personal income tax — confirmed — Bermuda has no plans to introduce personal income tax; the payroll tax system (employee bands of 0.25% to 12.5%; employer rates by employer class) continues as the primary personal tax mechanism.
ILS market growing — Bermuda's Insurance Linked Securities market continues to expand; Bermuda remains the world's leading catastrophe bond and ILS domicile, reinforcing demand for high-earning professionals.
No capital gains or inheritance tax — Bermuda has confirmed no changes to its zero capital gains and zero inheritance tax regimes for 2026.

Last Updated: October 2026 · Daniel · CountryTaxCalc