Income tax on rent, worked example, in Bermuda
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| 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% |