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Bahamas vs Barbados
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ง๐Ÿ‡ธ Bahamas
vs
๐Ÿ‡ง๐Ÿ‡ง Barbados
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0%
No income tax maintained
No change
12.5โ€“28.5%
28.5% top; competitive Caribbean jurisdiction
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% VAT maintained
No change
17.5%
17.5% stable
No change
Corporate Tax Rate
Corporate Tax Rate
0%
No CIT; Pillar Two compliance via domestic top-up
No change
5.5โ€“9%
Tiered rate; Pillar Two compliance for large groups
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT
No change
0%
No CGT โ€” sustained advantage
No change
Social Security & Payroll
Social Security / Payroll
~9.8%
NIB; hurricane recovery spending affecting fiscal position
No change
~18.1%
NIS contributions; pension reform needed
No change
State, Regional & Local Taxes

๐Ÿ‡ง๐Ÿ‡ธ 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.

๐Ÿ‡ง๐Ÿ‡ง Barbados โ€” Parish Councils & Land Tax

Barbados's 11 parishes have parish councils that levy land tax at 0.1%โ€“0.7% 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.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Bahamas vs Barbados: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ง๐Ÿ‡ง Barbados has a higher top income tax rate (0% vs 12.5โ€“28.5%). ๐Ÿ‡ง๐Ÿ‡ธ Bahamas is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Barbados has a higher consumption tax (10% vs 17.5%).

๐Ÿข Corporate Tax: ๐Ÿ‡ง๐Ÿ‡ธ Bahamas offers a lower corporate rate (0% vs 9%), which can influence business location decisions.

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