The bands for individuals since 2026
| Taxable income | Rate |
|---|---|
| up to €22,000 | 0 % |
| €22,001 to €32,000 | 20 % |
| €32,001 to €42,000 | 25 % |
| €42,001 to €72,000 | 30 % |
| above | 35 % |
They are marginal rates. Each rate applies only to the part of income falling in its band.
Average and marginal rate are far apart
This is the figure missing from the conversation. The marginal rate sounds high; the average rate is not.
| To tax | Tax | Average | Marginal |
|---|---|---|---|
| €22,000 | €0 | 0.0 % | 0 % |
| €32,000 | €2,000 | 6.2 % | 20 % |
| €42,000 | €4,500 | 10.7 % | 25 % |
| €50,000 | €6,900 | 13.8 % | 30 % |
| €72,000 | €13,500 | 18.8 % | 30 % |
| €100,000 | €23,300 | 23.3 % | 35 % |
| €150,000 | €40,800 | 27.2 % | 35 % |
Even at €150,000 the actual rate is 27.2 % and not the 35 % you have in mind.
What moved in 2026
| To 2025 | From 2026 | |
|---|---|---|
| Tax free to | €19,500 | €22,000 |
| 20 % to | €28,000 | €32,000 |
| 25 % to | €36,300 | €42,000 |
| 30 % to | €60,000 | €72,000 |
| 35 % from | €60,000 | €72,000 |
Two shifts work together: the allowance rose by €2,500, and the top rate bites €12,000 later.
What it is worth in practice
| To tax | Old scale | New scale | Relief |
|---|---|---|---|
| €30,000 | €2,200 | €1,600 | €600 |
| €45,000 | €6,385 | €5,400 | €985 |
| €60,000 | €10,885 | €9,900 | €985 |
| €80,000 | €17,885 | €16,300 | €1,585 |
The relief grows until the new top limit is reached and stays constant above it: from €72,000 both scales apply the same rate of 35 %, so the new scale’s lead is then fixed.
Gross pay is not what is taxed
A point that shifts the whole table if you miss it.
Before the tax, the social insurance (8.8 %) and GHS (2.65 %) contributions come off, capped at one fifth of income. On €40,000 gross that is €35,420 of taxable income and not €40,000.
The full calculation is in the guide to gross and net. Which allowances can additionally be claimed is in the guide to the T.D.59.
What does not fall under this scale
Companies. This scale applies exclusively to individuals. A Cyprus limited company pays no income tax but corporate tax, at a single rate of 15 % on the whole profit, with no allowance and no bands. See the guide to corporate tax.
Dividends. They are exempt from income tax under Article 8(20) of the Income Tax Law. Instead the special defence contribution applies, from which non-dom status exempts you, plus GHS. See the comparison of salary and dividend.
Gains on crypto disposals. Since 2026 a separate rate of 8 % applies under Article 20E, see the guide to crypto tax.
Employment income of new arrivals under the 50 percent exemption. There only half is captured, see the guide to the 50 percent exemption.
What we could not substantiate
- The upper limit of the 20 percent band in the old scale. Most sources quote €28,000, one quotes €28,500. The effect on our relief calculation is a few euro.
- Official confirmation of the new bands. They appear consistently in several presentations; we did not inspect the tax department’s own page.
- Whether the bands will be linked to inflation in future. We found no source on this.
Bookkeeping: a scale that changes
In 2026 five values moved at once. Anyone maintaining them in a spreadsheet maintains them in several places and misses one.
In Volk Accountant the bands and limits sit in one place, and the tax estimate calculates with what applies. The reports show the year the return comes out of. Which deadlines hang on it is in the overview of tax deadlines.