Individuals in Bermuda don’t pay personal income tax. Instead, the Government of Bermuda levies a Payroll Tax.
Payroll Tax
Payroll Tax is levied on all employers. However, as an employee your employer may deduct a 6 per cent whiholding amount from your salary to contribute toward the total Payroll Tax obligation.
If you’re self-employed, you are required to pay Payroll Taxes yourself.
Land Tax
All homeowners and long-term tenants are required to pay Land Tax twice yearly. You must pay Land Tax if you are:
- the sole proprietor of a property
- a life tenant in an property
- a leaseholder for three or more years
- a periodic (yearly or monthly) tenant of property owned by the Government of Bermuda
Determining Land Tax amounts
Your Land Tax bill is calculated by the Office of the Tax Commissioner. Your Land Tax rate is based on the annual rental value (ARV) of your property.
You can calculate your current residential properties Land Tax rate
The proposed Land Tax rate on residential properties will come into effect on 1 July 2019. You can calculate proposed rates
The following table explains the current rates of tax for private dwellings:
| Annual Rental Value (ARV) band | Value range in dollars | Tax rate percentage |
|---|---|---|
| 1 | 0-$11,000 | 0.80 |
| 2 | 11,001 - 22,000 | 1.80 |
| 3 | 22,001 - 33,000 | 3.50 |
| 4 | 33,001 - 44,000 | 6.50 |
| 5 | 44,001 - 90,000 | 12.00 |
| 6 | 90,001 - 120,000 | 30.00 |
| 7 | 120,001 and over | 50.00 |
The following table explains the proposed rates of tax for private dwellings:
| Annual Rental Value (ARV) band | Value range in dollars | Tax rate percentage |
|---|---|---|
| 1 - $22,000 | $300 | |
| Over $22,000 | ||
| $300 with the below rates | ||
| 1 | 0-$11,000 | 0.80 |
| 2 | 11,001 - 22,000 | 1.80 |
| 3 | 22,001 - 33,000 | 3.50 |
| 4 | 33,001 - 44,000 | 6.50 |
| 5 | 44,001 - 90,000 | 17.00 |
| 6 | 90,001 - 120,00 | 30.00 |
| 7 | 120,001 and over | 50.00 |
The Land Tax on Commercial Properties is 12% in respect of the tax periods July 1, 2018 – December 31, 2018 and January 1, 2019 – June 30, 2019. The Land Tax on Commercial Properties in an Economic Empowerment Zone remains at 7%.
The proposed Land Tax on Commercial Properties beginning with the period July 1, 2019 is 9.5%. A new category will be introduced for tourist properties with a tax rate of 8%. It is proposed that the Land Tax on Commercial Properties in an Economic Empowerment Zone remains at 7%
You can find your specific ARV on the Land Valuation website. To identify your property you will need to enter either:
- your street name and house number
- your valuation assessment number
Your Land Tax bill is mailed to you before the due date. If you don’t receive the statement, you can contact the Office of the Tax Commissioner for a copy.
Land Tax due dates in Bermuda
Land Tax is due twice a year twice a year in March and September, on the specified date in the demand note issued by the Tax Commissioner. Failure to pay on the due date will result in the accumulation of interest on the amount owing at 7 per cent per annum.
Relief from Bermuda Land Tax
If you are 65 years old or over and own and occupy a private dwelling, you can be exempted from $1,566 in Land Tax annually. This exemption only applies to homes with annual rental value (ARV) up to $45,500. Tax will be due on the value of the ARV in excess of $45,500.
The proposed exempted amount beginning July 1, 2019 is $1,941. The proposed rates for the ARV bands up to the exempted ARV of $45,500 is $1,641.
The total proposed exemption includes the $300 flat rate which is being introduced beginning July 1, 2019.
or pick one up from the Office of the Tax Commissioner to apply for relief from Land Tax.
How to pay your taxes in Bermuda
You can pay your Land Tax and Payroll Tax bills online, in person with cash or cheques, by mail (cheque only), and through your bank. Read more about on how to make payments to the Government of Bermuda.