Update - Bermuda Parliament Approves Payroll Tax Cuts and Other Changes in 2026/27 Budget

On 23 March 2026, Bermuda's Senate (upper house of parliament) approved the Payroll Tax Amendment and Validation Act 2026, following its approval by the House of Assembly (lower house) on 11 March 2026. The Act provides for the implementation of the payroll tax cuts and other changes announced in the 2026/2027 Budget Statement, with some adjustments.

As per the Act, the employer payroll tax rates will be as follows from 1 April 2026:

• Annual payroll below BMD 200,000 - 0.50% (down from 1.0%…