Bahamas vs Barbados
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ง๐ธ Bahamas โ Local Government Rates & Fees
The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax โ making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.
๐ง๐ง Barbados โ Parish Councils & Land Tax
Barbados's 11 parishes have parish councils that levy land tax at 0.1%โ0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.
Bahamas vs Barbados: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ง๐ง Barbados has a higher top income tax rate (0% vs 12.5โ28.5%). ๐ง๐ธ Bahamas is more favourable for high earners.
๐ VAT/Sales Tax: Barbados has a higher consumption tax (10% vs 17.5%).
๐ข Corporate Tax: ๐ง๐ธ Bahamas offers a lower corporate rate (0% vs 9%), which can influence business location decisions.