Bermuda vs Iceland: Income Tax Compared (2026)
Bermuda vs Iceland: tax rates, brackets, and take-home pay compared side by side.
| Metric |  Bermuda |  Iceland |
|---|---|---|
| Currency | BMD | ISK |
| Top marginal rate | 0% | 46.29% |
| Standard deduction | $0 | kr0 |
| Filing deadline | N/A — no personal income tax | 31 May |
Estimated at $75,000 USD-equivalent income
Bermuda net income ≈ $75,000 (0.0% effective rate)
Iceland net income ≈ kr6,806,570 (34.2% effective rate)
Take-home pay compared at four salary levels
Estimated Bermuda and Iceland income tax on the same four salaries, set in US dollars and converted at approximate fixed reference rates (not live exchange rates). Income tax only: social contributions are not deducted.
| Salary | Bermuda tax | Bermuda take-home | Iceland tax | Iceland take-home | Lower effective rate |
|---|---|---|---|---|---|
| $25,000 | $0 (0.0%) | $25,000 | kr1,086,405 (31.5%) | kr2,363,595 | Bermuda |
| $50,000 | $0 (0.0%) | $50,000 | kr2,232,775 (32.4%) | kr4,667,225 | Bermuda |
| $100,000 | $0 (0.0%) | $100,000 | kr4,854,085 (35.2%) | kr8,945,915 | Bermuda |
| $200,000 | $0 (0.0%) | $200,000 | kr10,994,649 (39.8%) | kr16,605,351 | Bermuda |
Bermuda Pros & Cons
- ✓No personal income tax at all
- ✓Clear filing deadline: N/A — no personal income tax
- ✕Even at 0%, other levies (VAT, customs, social contributions) may still apply
Iceland Pros & Cons
- ✓Clear filing deadline: 31 May
- ✕Top earners face a marginal rate of up to 46.29%
- ✕Higher top rate than Bermuda by 46.3 points
- ✕Progressive brackets mean higher earners pay a larger share
Frequently asked questions
At $75,000 income, how does take-home pay compare?+
On an estimated $75,000 USD-equivalent income, our calculator shows Bermuda take-home of roughly $75,000 (0.0% effective rate) versus Iceland's kr6,806,570 (34.2% effective rate). Use the calculator above with your own income for a personalized estimate.
How much tax would I pay moving from Bermuda to Iceland?+
On a $75,000 USD-equivalent salary our estimate is an effective income tax rate of 0.0% in Bermuda and 34.2% in Iceland, so moving from Bermuda to Iceland, income tax would rise by roughly $25,677 a year. This compares income tax only: social contributions, residency rules, visas and cost of living are not included.
How much tax would I pay moving from Iceland to Bermuda?+
On a $75,000 USD-equivalent salary our estimate is an effective income tax rate of 34.2% in Iceland and 0.0% in Bermuda, so moving from Iceland to Bermuda, income tax would fall by roughly $25,677 a year. This compares income tax only: social contributions, residency rules, visas and cost of living are not included.
Which has the higher top tax rate, Bermuda or Iceland?+
Iceland has the higher top marginal rate at 46.29%, compared to Bermuda's 0%.
What's the standard deduction in each country?+
Bermuda's estimated standard deduction is $0, while Iceland's is kr0. A larger deduction reduces the income that's actually taxed.
Are these figures exact?+
No — these are estimates generated from a simplified model of each country's published tax brackets, intended for planning purposes. They don't account for every credit, allowance, or surcharge. Always confirm current-year figures with Bermuda's and Iceland's official tax authorities before making a decision.
Compare Bermuda with other countries
Compare Iceland with other countries
Figures shown are estimates for the current tax year and do not include every deduction, credit or surcharge that may apply. Always confirm with each country's official tax authority.