Bermuda Tax Calculator (2026)

Income tax rates and take-home pay for Bermuda

Bermuda Income Tax Brackets (2025)

Bracket Income Range Rate

Contributory Pensions Fund - Employee Contribution

Fixed amount: BMD 1,958 per year

Key Facts

Tax Year

2025

Currency

BMD

Top Rate

0%

Brackets

0 brackets

Allowance

None

Social Contributions

1 item

Assumptions

  • · Bermuda does not impose income tax on individuals.
  • · Employee social insurance contributions are mandatory: BMD 37.65 per week (approximately BMD 1,957.80 annually based on 52 weeks).
  • · Employer social insurance contributions are separate and not included in this employee model.
  • · The default person is assumed to be under age 65, employed full-time (more than 4 hours per week), and not a full-time student.
  • · No income tax brackets, credits, or deductions are applicable.
  • · Other taxes (customs duties, stamp duty, VAT, etc.) are transaction-based or not employment-income related and are excluded from salary comparison calculations.
  • · Social insurance contributions are not deductible against any income tax liability (as there is none).
  • · This model reflects the absence of personal income tax in Bermuda, making the take-home salary equal to gross salary minus only mandatory employee social insurance contributions.

Frequently asked questions

Do I pay income tax on my salary in Bermuda?

No, Bermuda does not impose income tax on individuals, which is one of the key advantages of working there. Your take-home pay will be your gross salary minus only mandatory employee social insurance contributions of approximately BMD 1,957.80 annually.

What are the mandatory deductions from my paycheck in Bermuda?

The only mandatory deduction from your salary is the Contributory Pensions Fund employee contribution, which is a fixed amount of BMD 1,957.80 per year (approximately BMD 37.65 per week). This is not deductible against income tax since Bermuda has no personal income tax.

How much will I actually take home after taxes and deductions?

Your take-home pay equals your gross salary minus the mandatory Contributory Pensions Fund contribution of BMD 1,957.80 annually. Since there is no income tax in Bermuda, this is the only employment-related deduction you'll face from salary.

Are there any other taxes I should know about as an employee in Bermuda?

While there is no income tax, Bermuda does have other taxes like customs duties, stamp duty, and VAT that apply to transactions and purchases rather than employment income. As an employee, your main concern is the mandatory social insurance contribution mentioned above.

Do employer social insurance contributions affect my salary?

Employer social insurance contributions are paid separately by your employer and do not reduce your personal take-home pay. Only the employee contribution of BMD 1,957.80 annually is deducted from your salary.

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