Bermuda

On March 17, 2026, the House of Assembly approved the 2026/2027 National Budget, delivering meaningful tax & fee reductions for workers and families while continuing to invest in services and infrastructure that support Bermuda’s future.

The Budget emphasises three main priorities: reducing daily expenses, putting more money in workers’ pockets, and continuing to invest in Bermuda’s infrastructure.

Key measures in the 2026/2027 Budget include:

• Lower payroll taxes for everyone, with middle-class Bermudians getting the largest tax reductions, so they can keep more of their hard-earned income.
• Lower duties on essential goods, helping to reduce the cost of groceries and everyday household items.
• Lower vehicle licensing fees, providing additional relief for families.
• Increased investment in healthcare to expand coverage for seniors and reduce hospital waiting times.
• Increased investment in public education, affordable housing, and public safety.
• Reduction of the national debt, securing Bermuda’s finances for the future.

Increased Dividends Exemptions

As of April 1, 2026, dividends paid to individuals providing services to local companies (i.e. companies not trading on any stock exchange) are exempt from payroll tax up to $20,000 per person per year. Dividends in excess of this threshold are treated as taxable remuneration for payroll tax purposes.