Cyprus Income Tax
Source-backed employee estimate for 2026-01-01 to 2026-12-31.
How Cyprus income tax works
Progressive tax applies to income after the supported deductions. Each band taxes only the portion inside it. These bands use the taxable income base.
| Taxable annual income | Rate |
|---|---|
| EUR 0 - 22,000 | 0% |
| EUR 22,000 - 32,000 | 20% |
| EUR 32,000 - 42,000 | 25% |
| EUR 42,000 - 72,000 | 30% |
| EUR 72,000 - and above | 35% |
Calculation assumptions
- Full-year Cyprus tax resident; private-sector employee with ordinary social insurance rates.
- Equal earnings in 12 monthly payroll periods. Annual contribution caps are used.
- All voluntary payments are annual, employee-paid, and eligible approved policies or schemes.
- No life-policy surrenders, partial withdrawals or recapture events during the tax year.
- Net income is cash after tax, statutory contributions, and entered voluntary payments.
Coverage & limitations
Coverage: Standard · Rule version: CY-2026-v1 · Tax year: 2026 · Independent verification: pending.
- Resident private-sector employees with equal monthly earnings over a full year only.
- Family, housing, energy, first-employment exemptions, disability and special occupational arrangements are not modelled.
- Employer total includes Social Insurance and GESY only; other employer levies and holiday funds are excluded.
- Annual estimates may differ from payroll rounding; no independent professional verification yet.
- Government benefit rules are not yet available.
Official sources
- Income Tax Law, article 14 (consolidated) - CyLaw / Cyprus Bar Association
- 2026 employee tax declaration and instructions (TD59) - Cyprus Tax Department
- 2026 maximum insurable earnings - Social Insurance Services
- Social insurance contribution rates from 2024 - Ministry of Labour and Social Insurance
- General Healthcare System contribution rates - Cyprus Tax Department
Source research date: 16 October 2026. This is distinct from independent professional verification. Automated source checks appear in the administration dashboard after the worker runs.