Change to Upper Individual Income Tax Band from August 1, 2018
The Barbados Revenue Authority wishes to advise you that the upper band of Individual Income Tax rates has been changed effective August 1, 2018 for the income year 2018.
This change follows the Financial Statement and Budgetary Proposal of June 11, 2018 presented by the Minister of Finance, Economic Affairs and Investment.
The two new rates are Tax on income for the Income Year 2018 and subsequent income years shall be calculated as follows:
| Taxable Income | Rate of Tax |
|---|---|
| Up to and including $35 000 | 16% |
| Over $35 000 and up to and including $50 000 | 33.5% |
| Over 50 000 | 40% |
Please also note that employers should adjust their payrolls with immediate effect.
Purpose
- To raise additional revenue of $41 million in a full tax year.
- To reduce the debt to Gross Domestic product (GDP)
Please see the PAYE tax calculator on the Barbados Revenue Authority's website:- https://bra.gov.bb
See the Policy Note on the Individual Income Tax rates below: