Barbados

Individual - Taxes on personal income

Last reviewed - 16 December 2019

An individual who is both resident and domiciled in Barbados is taxed on one’s worldwide income.

An individual who is resident but not domiciled in Barbados is taxed on income derived from Barbados and on income from any other sources outside Barbados to the extent that a benefit is obtained in Barbados.

In general, a non-resident individual is taxed only on income arising in Barbados and is not entitled to personal deductions against income.

Personal income tax rates

For the period 1 January 2019 to 30 June 2019, the basic rate of income tax is 16%, and the higher rates are 33.5% and 40% (the latter being introduced from 1 August 2018). The basic rate applies to the first BBD 35,000 of taxable income; 33.5% applies to taxable income above BBD 35,000 and up to BBD 50,000; and 40% applies to taxable income in excess of BBD 50,000. Effective 1 July 2019, the basic rate is 12.5% and the higher rate is 33.5%. The basic rate applies to the first BBD 50,000 of taxable income; 33.5% applies to taxable income above BBD 50,000.

1 January 2019 to 30 June 2019

Taxable income (BBD) Tax on column 1 (BBD) Tax on excess (%)
Over (column 1) Not over
0 35,000 5,600 16.0
35,000 50,000 5,025 33.5
50,000 40.0

1 July 2019 to 31 December 2019

Taxable income (BBD) Tax on column 1 (BBD) Tax on excess (%)
Over (column 1) Not over
0 50,000 6,250 12.5
50,000 33.5