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Cyprus Income Tax Calculator 2026

Calculate personal income tax in Cyprus under the 2026 bands.

Your household

This decides the income limit for the reform deductions, and how much the child deduction is worth.

Counted for the income limit only. Include children who are grown up, working or married, provided at least one child in the household is still a dependent child on 31 December.

Your own biological or legally adopted children who on 31 December are under 18, in secondary education and under 20, in the National Guard and under 21, a student under 24, or permanently unable to support themselves.

Your income for the year

Gross figures, before any deduction. If all you have is a salary, fill in the first box and leave the rest alone.

Everything your employer pays you before deductions, including overtime, bonuses, commission and taxable benefits in kind.

Social Insurance pension, and any other pension you have not elected to tax under a special method.

Before expenses. Declaring rents here unlocks the 20% wear and tear allowance on buildings, in the deductions section below.

Trade or profession, partnership share, a previous employment, and anything else charged at the normal rates.

Pensions taxed under their own rule, and income that is not taxed

A foreign service pension and a widow's pension each carry an annual election. Under the special method they are charged on their own and are not added to anything else, so no deduction reduces them.

Special method: 5% on the part above €5,000, charged separately.

Special method: 20% on the part above €22,000, charged separately.

Form line A7. Counted towards the income limit, but taken back out before the bands are applied.

Deductions

Social insurance and the General Healthcare System contribution are estimated from your salary. Open a section only if it applies to you.

Contributions and premiums, restricted to one fifth in total

Social insurance, the General Healthcare System contribution, provident and pension funds, medical funds, and life and disability premiums are deductible together only up to one fifth of your income after the other deductions. Two of them carry their own limit first.

Your own contributions, not your employer's. Allowed up to 10% of your gross income, then counted inside the one fifth.

Allowed up to 2% of your gross income, then counted inside the one fifth.

Premiums on your own life, and on permanent or temporary, total or partial disability cover.

Optional. The premium is deductible only up to 7% of the sum insured. Leave blank and no 7% test is applied.

Other deductions, taken before the one fifth is worked out

These come off first. Because they lower the figure the one fifth is measured against, they can reduce how much of your contributions you get to deduct.

Form line B1.

Form line B2, entered as an amount. Either 20% of your pay capped at €8,550, or 50% of it if your salary is above €55,000, or 50% if it is above €100,000, depending on which scheme you qualify under. Leave at zero unless you know you qualify.

Capped at €500 for all your homes together. No income limit applies to this one.

Only allowed if you declared rents above. The 20% allowance on gross rents of buildings is added for you.

Only allowed if you declared rents above.

Form line B5, with receipts. No cap is applied here, because the Department's form states none for charitable donations generally.

Also form line B5. Anything else you can evidence.

The 2026 reform deductions, which sit outside the one fifth

Capped at €2,000 for rent and interest together, per person. The loan must be performing, and rent must be paid electronically to the owner. Deduct any state subsidy first.

Capped at €1,000 per person per year. Deduct any state grant first.

Income tax for the year, tax year 2026

€0

Before the reform, and after

 Tax years 2008 to 2025Tax year 2026 onwards

The before column re-taxes the same income on the 2008 to 2025 bands and takes away the four deductions the reform introduced: the dependent child deduction, the rent or mortgage interest deduction, the energy upgrade and electric vehicle deduction, and the home insurance deduction. Amounts you elected to tax under a special method are charged the same way in both columns, so the benefit shown is the benefit on income taxed at the normal bands.

The working

StepRateAmount in bandAmount

What this uses, and what it does not

Every rate, cap and threshold here was read on 5 September 2026 from the document named against it. The order of the calculation, and the one fifth restriction in particular, follows the Tax Department's ownform T.D.59A for 2026 and the Department's ownemployer withholding spreadsheet, which is the arithmetic the Department itself runs.

Where each figure comes from

  • The bands, 2026 onwards and 2008 to 2025. The Tax Department'sIndividual Income Tax Return page, section "Tax Bands". The rates are marginal, so 35% applies only to the part above €72,000 and never to the whole of it.
  • The one fifth restriction. Note 10 of form T.D.59A: social insurance, the General Healthcare System contribution, pension, provident and medical fund contributions, and life and disability premiums "must not exceed one fifth of your taxable income (i.e. 1/5th of the intermediary calculation B6)". B6 is your taxable income after the other deductions, so the other deductions shrink the one fifth allowance as well.
  • The two sub-limits, and the order they apply in. The Greek edition of note 19 for employers, in the Department's withholding spreadsheet: health funds and schemes are capped at 2% of income, pension and provident funds and schemes at 10% of income, depending on the approval of the fund. The Greek edition of note 10 adds that these "are subject to an additional restriction before the 1/5". So each sub-limit bites first, then the one fifth cap is applied to the sub-limited total. This calculator uses your total gross income as the base for both sub-limits, which is what the note says. It does not read across to the terms of your particular fund's approval, which can be tighter.
  • Social insurance, 8.8%. The Republic of Cyprusbusiness portal: 22.8% in total, split 8.8% employer, 8.8% employee, 5.2% state. Applied here to your salary only.
  • The insurable earnings ceiling, €5,742 a month. Social Insurance Services,Basic Insurable Earnings 1981 to 2026, 2026 row: weekly €1,325, monthly €5,742, yearly for a monthly paid employee €68,904. This calculator uses the monthly paid figure, so social insurance is estimated at 8.8% of the lower of your salary and €68,904, a maximum of €6,063.55. A weekly paid employee's annual ceiling is €68,900, four euro lower.
  • General Healthcare System, 2.65% up to €180,000. Note 22 of form T.D.59A: withhold 2.65%, and stop once income passes €180,000. The same rate and ceiling are published by theMinistry of Labour. The annual maximum is therefore €4,770. The estimate here is taken on your salary only.
  • The income criterion.Frequently asked questions on the 2026 reform, 11 May 2026, questions 13 and 23: €40,000 for a single person, €100,000 for a family with no children or one or two children, €150,000 for a family with three or four children, €200,000 for a family with five or more. Thesixteen official worked examplesconfirm each threshold, and example 14 confirms €200,000 for five children. It is a cliff edge, not a taper: one euro over and the whole entitlement goes.
  • The dependent child deduction. Same FAQ, question 24: €1,000 for the first, €1,250 for the second, €1,500 for the third and every additional dependent child, doubled for a single parent family (question 26). It is granted to each biological or adoptive parent separately, so a couple each claim their own. This calculator computes one person's tax.
  • Rent or mortgage interest, €2,000. Same FAQ, questions 28 and 29: €2,000 is the maximum for rent and interest together in one year, per spouse, civil partner or single person, and it is gated on the income criterion.
  • Energy upgrade or electric vehicle, €1,000. Same FAQ, questions 34 and 35, per person per year, gated on the income criterion.
  • Home insurance, €500. Same FAQ, questions 42 to 45: €500 for all premiums and all homes, no income criterion, and it reduces the net income the one fifth is measured against rather than sitting inside it.
  • The 7% test on life and disability premiums. Same FAQ, questions 47 to 49. Applied here only if you enter a sum insured.
  • The special methods. A pension for services outside Cyprus is charged at 5% on the part above €5,000, the threshold having been raised from €3,420 by the reform. A widow's pension is charged at 20% on the part above €22,000, which is the formula printed in Part C of form T.D.59A. Both are charged separately, on their own, with an annual election to be taxed at the normal rates instead.

What this does not do

  • Decide whether you qualify. Whether someone is a family, a single parent family or a single person, whether a child is a dependent child, whether a loan counts as performing, and which first employment scheme applies are all questions of fact with detailed conditions. Read the Department'sexplanatory guide for individualsand itsworked examples, both published in Greek only, before relying on an answer here.
  • Investment in innovative companies, form line B13. The restriction is verified, 50% of your income after every other deduction, but eligibility runs through a separate certification regime, so the field is left out rather than half implemented.
  • The 8% special rate with a €10,000 minimum on alternative investment fund carried interest and UCITS performance fees, form line A10.
  • Carrying an unused energy upgrade or electric vehicle spend forward.The Department allows up to €1,000 in each of the next four years, but only if the income criterion is met again in each of those years, so it cannot be settled from one year's figures.
  • Self employed contributions. The self employed pay social insurance at a different rate on a different base, and a different General Healthcare System rate. Only the employee rates are modelled. Override both boxes if you are self employed.
  • General Healthcare System on income other than salary. The contribution is also charged on pensions, rents and other income, but this calculator only estimates it on your salary, because the employee rate of 2.65% is the only one confirmed in the sources above. Rents in particular attract it, and from 1 January 2026 rental income carries income tax and the healthcare contribution and no longer Special Defence Contribution. Enter your own figure if you have income of that kind.
  • Special Defence Contribution on dividends and interest, which is charged under Law 117(I)/2002 and is outside these bands entirely. Non-domiciled residents are outside its scope.
  • Anything that turns on your circumstances, including residency, double tax relief, and how income and deductions are split between two spouses. An estimate from a table is not a filed return. Have anything close to a threshold confirmed by a firm licensed to advise in Cyprus.

How this works

Updated for the 2026 tax reform, which changed the bands and allowances for individuals.

Related guide

The legislation behind these figures, who pays, when it is due, and the reliefs that are easy to miss.

Get this checked by a licensed firm

A calculator gives you an estimate. For anything that matters, have it confirmed by a firm licensed to advise in Cyprus.

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Estimates only, not tax advice. Figures are checked against published Cyprus Tax Department guidance and reviewed at least annually.