Bermuda Tax Calculator (2026)

Income tax rates and take-home pay for Bermuda

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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. However, you will still need to pay mandatory employee social insurance contributions of approximately BMD 1,957.80 annually, which is deducted from your gross salary.

What are the mandatory deductions from my paycheck in Bermuda?

The only mandatory deduction from your salary is the employee contribution to the Contributory Pensions Fund, which amounts to BMD 37.65 per week or approximately BMD 1,957.80 per year. This is not deductible against income tax since Bermuda has no income tax system.

How is my take-home pay calculated in Bermuda?

Your take-home pay in Bermuda is simply your gross salary minus the mandatory employee social insurance contributions of BMD 1,957.80 annually. Since there is no income tax, no other employment-related deductions apply to your salary calculation.

Are there any other taxes I should know about when working in Bermuda?

While Bermuda has no personal income tax, there are other taxes like customs duties, stamp duty, and VAT that apply to transactions and purchases rather than employment income. These transaction-based taxes are not included in salary calculations but may affect your overall cost of living.

As an expat relocating to Bermuda, what's the tax advantage?

The primary tax advantage is that Bermuda has no personal income tax, meaning your entire gross salary remains yours except for mandatory employee social insurance contributions. This makes Bermuda particularly attractive for remote workers and expats compared to countries with traditional income tax systems.

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