Income tax on rent, worked example, in Bermuda

Taxation Researcher | August 10, 2021

NON-RESIDENT COUPLE (DEEMED RENTAL INCOME)1
Monthly Rental Income2 1,500 6,000 12,000
Annual Rental Income 18,000 72,000 144,000
= Taxable Income 18,000 72,000 144,000
Income Tax 3
No tax 0% - - -
Other Taxes
Property Tax4
Up to US$11,000 0.80%
US$11,000 - US$22,000 1.80% 324
US$22,000 - US$33,000 3.50%
US$33,000 - US$44,000 6.50%
US$44,000 - US$90,000 12.00% 8,640
US$90,000 - US$120,000 12.00%  
Over US$120,000 47.00% 26,251
Annual Income Tax Due 324 8,640 67,680
Tax Due as % of Gross Income 1.80% 12.00% 47.00%

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 US$ = 1.00 BMD

3 There are no income taxes in Bermuda.

4 Land tax is assessed on the annual rental value (ARV) of the property. It is levied at progressive rates.

INCOME TAX 2015 (4)

TAXABLE INCOME (US$) TAX RATE
Up to US$11,000 0.80%
US$11,000 - US$22,000 1.80%
US$22,000 - US$33,000 3.50%
US$33,000 - US$44,000 6.50%
US$44,000 - US$90,000 12.00%
US$90,000 - US$120,000 25.00%
Over US$ 120,000 47.00%
   

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