Cyprus 2025 vs 2026 Tax Calculator
Compare Cyprus personal income tax under the 2025 and 2026 bands on the same taxable income; see the band-only difference.
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 bands have a €22,000 tax-free threshold instead of €19,500. The result isolates the band-only tax difference on the same taxable income. It does not calculate contributions, allowances or two actual tax returns.
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. The calculation holds taxable income constant and isolates the effect of changing only the income tax bands. It does not calculate Social Insurance, GHS, new allowances or actual take-home pay.
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 difference between the two band calculations is €885 on the same hypothetical taxable income. Actual year-to-year tax may differ for other reasons.
Who benefits most
At the same taxable income, there is no band-only change up to €19,500; above that point the difference grows as the thresholds widen. The absolute difference reaches €1,585 at €72,000 or above, because both schedules then tax additional income at 35%. This is a comparison of band tables, not a prediction for any person's actual annual tax. 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
On the same taxable income, the 2026 bands never produce more tax than the 2025 bands; amounts at or below €19,500 produce no difference. Actual tax returns may differ because income, deductions and circumstances can change.
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
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Estimate your Cyprus company tax at the 2026 rate of 15%.
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Estimate gross-to-net pay with 2026 tax, employee Social Insurance and GHS.
Cyprus VAT Calculator 2026
Add or remove Cyprus VAT at 19%, 9%, 5%, 3% or 0%.
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