Cabo Verde Tax Calculator (2026)
Income tax rates and take-home pay for Cabo Verde
Cabo Verde Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| First bracket | CVE 0 - CVE 960,000 | 16.5% |
| Second bracket | CVE 960,000 - CVE 1,800,000 | 23.1% |
| Third bracket | CVE 1,800,000+ | 27.5% |
Personal allowance: CVE 220,000
Social security contribution (employee)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard employee contribution | CVE 0+ | 8.5% |
Key Facts
Tax Year
2026
Currency
CVE
Top Rate
27.5%
Brackets
3 brackets
Allowance
CVE 220,000
Social Contributions
1 item
Assumptions
- · Model represents a resident employee under the declarative method (Category A income).
- · Tax-free allowance of CVE 220,000 applied as a standard relief against taxable income.
- · Personal deductions (health, rent, education, alimony) capped at CVE 12,500–25,000 are not modeled individually; a representative allowance-based approach is used instead.
- · Dependent allowances (CVE 5,000 per dependent up to CVE 25,000 total) are not included; default person has no dependents.
- · Social security employee contribution (8.5%) is deductible from gross income before income tax.
- · Non-habitual resident regime (10% flat rate) and other special regimes are not modeled; standard declarative brackets apply.
- · No voluntary or employer-only contributions included.
- · VAT, property tax, and consumption taxes are not included in net salary calculation.
Frequently asked questions
How much income tax do I pay in Cabo Verde?
Cabo Verde uses a progressive tax system with three brackets: 16.5% on income up to CVE 960,000, 23.1% on income from CVE 960,000 to CVE 1,800,000, and 27.5% on income above CVE 1,800,000. You also get a tax-free allowance of CVE 220,000 that reduces your taxable income before these rates apply.
What is the social security contribution rate for employees in Cabo Verde?
As an employee in Cabo Verde, you contribute 8.5% of your gross income to social security. The good news is this contribution is deductible from your gross income before income tax is calculated, which lowers your overall tax burden.
Do I pay tax on my full salary in Cabo Verde?
No, your taxable income is reduced by a tax-free allowance of CVE 220,000 and your 8.5% social security employee contribution. This means you only pay income tax on the amount remaining after these deductions are applied.
Is there a flat tax option for expats or remote workers in Cabo Verde?
Cabo Verde does offer a non-habitual resident regime with a 10% flat rate for certain eligible individuals, but the standard progressive tax system with three brackets applies to most resident employees. You should check with local tax authorities to see if you qualify for any special regimes based on your specific situation.
What is the take-home pay after taxes and contributions in Cabo Verde?
Your take-home pay is calculated by subtracting both the 8.5% social security contribution and the progressive income tax from your gross salary. The exact amount depends on your income level and which tax bracket you fall into, but the calculator above can show you the precise figure for your salary.
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