Alerts

  • The Department of Health would like you to know that as of 1 August there is a ban on smoking, including e-cigarettes, both inside and anywhere outside certain government premises. These premises are health care facilities, residential care facilities, educational, daycare and preschool facilities, plus the bus and ferry terminals.

Types of taxes in Bermuda

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 of your property. The following table explains the 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

25.00

7 120,001 and over 47.00

Calculate your residential land tax here

For commercial properties, the Land Tax rate is 7 per cent.

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 new 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 month.

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.

Download an application form 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.

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