How is income tax calculated in Barbados?
Residents deduct a personal allowance of BBD 25,000 a year. From income year 2026, taxable income up to BBD 50,000 is taxed at 11.5% and anything above at 27.5%.
Employees pay 11% National Insurance on earnings up to BBD 5,360 a month, plus 0.25% of gross earnings to the Resilience and Regeneration Fund.
What is the income tax rate in Barbados?
| Taxable income | Rate |
|---|---|
| BBD 0 – BBD 50,000 | 11.5% |
| Over BBD 50,000 | 27.5% |
What mandatory salary deductions apply?
- National Insurance (employee): 11% of pay, on up to 5,360 a month.
- Resilience and Regeneration Fund (employee): 0.25% of pay.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: BBD 6,000.00 a month
An employee earning 6,000 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | BBD 6,000.00 | BBD 72,000.00 |
| Income tax | BBD 450.42 | BBD 5,405.00 |
| Compulsory contributions | BBD 604.60 | BBD 7,255.20 |
| Take-home pay | BBD 4,944.98 | BBD 59,339.80 |
Effective income tax rate 7.5%; all deductions 17.6%.
Frequently asked questions
What are the income tax rates in Barbados for 2026?
11.5% on the first BBD 50,000 of taxable income and 27.5% above.
What is the personal allowance?
BBD 25,000 for individuals (BBD 75,000 for pensioners over 60); non-residents get none.
How much National Insurance does an employee pay?
11% of insurable earnings up to BBD 5,360 a month.
Official sources
- PwC Worldwide Tax Summaries (reviewed 09 October 2026): Barbados – Individual – Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 09 October 2026): Barbados – Individual – Other taxes. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 09 October 2026): Barbados – Individual – Deductions. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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