Bermuda Tax Calculator (2026)

Bermuda Income Tax Brackets (2025)

Contributory Pensions Fund - Employee Contribution

Fixed amount: BMD 1,958 per year

Do I have to pay income tax in Bermuda?

No, Bermuda does not impose income tax on individuals, which is one of the major tax advantages of working or living 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 salary.

What are the mandatory deductions from my salary in Bermuda?

The main deduction 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 the primary mandatory deduction from employment income, and your take-home pay will be your gross salary minus this amount.

Is my take-home pay in Bermuda just my gross salary minus social insurance?

Yes, since Bermuda has no personal income tax, your take-home pay equals your gross salary minus only the mandatory employee social insurance contributions of BMD 1,957.80 annually. There are no income tax brackets, credits, or other employment-related deductions that reduce your pay.

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 goods rather than employment income. As an employee, your main concern is the mandatory social insurance contribution; these other taxes won't directly affect your salary calculations.

Do employers in Bermuda also pay social insurance contributions?

Yes, employers in Bermuda pay separate social insurance contributions on top of employee contributions, but these employer contributions are not deducted from your salary and are handled separately by your employer.

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