2025 vs 2026 Tax Comparison
Compare your Cyprus personal income tax under the old 2025 rules and the new 2026 bands, and see exactly how much the reform saves you.
Income tax: 2025 rules vs 2026 rules
Tax-free up to €19,500 · effective 12.21%
Tax-free up to €22,000 · effective 10%
The bands compared
| Rate | 2025 band | 2026 band |
|---|---|---|
| 0% | €0 – €19,500 | €0 – €22,000 |
| 20% | €19,501 – €28,000 | €22,001 – €32,000 |
| 25% | €28,001 – €36,300 | €32,001 – €42,000 |
| 30% | €36,301 – €60,000 | €42,001 – €72,000 |
| 35% | over €60,000 | over €72,000 |
The 2026 reform raised the tax-free threshold from €19,500 to €22,000 and widened every band, so most individuals pay less personal income tax. (The corporate income tax rate moved the other way — up from 12.5% to 15%.) This compares income tax only; Social Insurance (8.8%) and GHS (2.65%) rates were unchanged. Estimate only.
Disclaimer: These calculators provide general estimates based on the 2026 Cyprus tax framework and standard assumptions. They do not account for every personal circumstance, allowance or exemption and are not tax advice. Speak to us before acting on any figure.
How the 2025-vs-2026 comparison works
This calculator runs your taxable income through both the Cyprus personal income tax bands that applied in 2025 and the new bands in force from 1 January 2026, then shows the difference in euros. Because the 2026 reform left Social Insurance and GHS untouched, the change in your take-home is driven purely by the wider, more generous income tax bands — which is exactly what this tool isolates.
The bands, side by side
The reform lifted the tax-free band and pushed every threshold upward, so more of your income is taxed at 0% and lower rates for longer.
| Rate | 2025 band | 2026 band (from 1 Jan) |
|---|---|---|
| 0% | Up to €19,500 | Up to €22,000 |
| 20% | €19,501–€28,000 | €22,001–€32,000 |
| 25% | €28,001–€36,300 | €32,001–€42,000 |
| 30% | €36,301–€60,000 | €42,001–€72,000 |
| 35% | Over €60,000 | Over €72,000 |
Worked example: €40,000 of taxable income
Take an employee with €40,000 of income after deductible contributions.
- Under the 2025 bands: €8,500 × 20% (€1,700) + €8,300 × 25% (€2,075) + €3,700 × 30% (€1,110) = €4,885.
- Under the 2026 bands: €10,000 × 20% (€2,000) + €8,000 × 25% (€2,000) = €4,000.
The reform saves this individual €885 for the year — before any of the new household allowances, which can reduce the bill further.
Who benefits most
Every taxpayer above €19,500 benefits to some degree, but the largest cash saving lands on middle incomes (roughly €30,000–€72,000), where the widened 20% and 25% bands replace income that previously fell into the 25% and 30% bands. Very high earners still reach the 35% rate, but only above €72,000 rather than €60,000, so they also keep more. For the full picture of the reform — corporate tax, dividends, the non-dom regime and more — read our 2026 tax reform guide, and to see the allowances that sit on top, use the 2026 allowances calculator.
Frequently asked questions
For almost all individuals, lower. The tax-free band rose from €19,500 to €22,000 and every band above it widened, so the same salary is taxed less in 2026 than under the 2025 rules. The corporate rate moved the other way (12.5% to 15%).
0% up to €19,500; 20% from €19,501 to €28,000; 25% from €28,001 to €36,300; 30% from €36,301 to €60,000; and 35% above €60,000. These applied through the 2025 tax year.
0% up to €22,000; 20% from €22,001 to €32,000; 25% from €32,001 to €42,000; 30% from €42,001 to €72,000; and 35% above €72,000. They apply to income earned from 1 January 2026.
No. Social Insurance (8.8% employee) and GHS (2.65% employee) were not changed by the 2026 reform, so the difference this calculator shows is driven entirely by the new income tax bands — enter income after those deductible contributions.
This tool compares the bands only. The reform also introduced new household allowances (housing, green upgrades, insurance, children) that can lower your taxable income further — model those with our 2026 allowances calculator.
No. Dividends are not taxed under the income tax bands — they fall under the Special Defence Contribution (0% for non-doms, 5% for domiciled residents from 2026) plus capped GHS. See our dividends guide for that.
Other calculators
Want the exact number — and a plan to lower it?
Book a free, no-obligation consultation. We'll review where you stand and show you exactly how we can help your business or personal finances in Cyprus.
- Reply within 1 business day
- Fixed fees, no obligation
- ICPAC-aligned · established 1984