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Certified Public Accountants | Statutory Auditors & Tax Advisors in Cyprus

Cyprus Tax Calculator

Updated for 2026 PAYE income tax, Social Insurance & GHS rates
Last reviewed: 11 January 2026

Tax year

Gross salary

Per

13th

🌍 Expat Tax Exemptions

Select your exemption type if eligible for expat tax relief under §8(21A) or §8(23A) of the Income Tax Law.

No Exemption
Standard tax calculation without expat benefits
Default
20% Exemption
20% of gross salary exempt, capped at €8,550/year
€8,550 Cap
50% Exemption
50% of gross salary exempt from tax (no cap)
No Cap

📊 Personal Allowances

Enter the annual amount of any personal allowances deductible as per §14 of the Income Tax Law.

Annual amount
Annual amount
Annual amount
🎯 2026 Tax Reform Allowances
New allowances introduced in 2026 for eligible households. Check your eligibility based on household income and family status.
Check Your Eligibility
2026 Reform Allowances
€1,000 (1st), €1,250 (2nd), €1,500 (3rd+) per parent
(Doubles allowance)
Max: €2,000 (loan interest or rent)
Max: €1,000 (energy upgrade or EV)
Max: €500 (natural disaster coverage)
Your net salary is:
/ month
/ year

Tax year · Gross · · pay periods

Calculated using Cyprus employee PAYE rules for tax year , including Income Tax, Social Insurance and GHS.
Statutory deductions * € / month € / year
Social insurance 1
GHS 2
Personal income tax 3
Total statutory deductions
* Figures shown are employee deductions; employer contributions are not included.

How your net salary is calculated

1 Social insurance – how €/month (€/year) was calculated

Based on your gross monthly salary of (€ per year), social insurance is calculated as follows:

Step 1: Determine if annual social insurance cap is triggered

Social insurance is calculated on your annual insurable earnings and is subject to an annual insurable earnings cap. For the cap is and derived form the weekly insurable earnings ceiling of € × weeks.

Your annual gross salary of € does not exceed the annual cap, so your earnings are used for the calculation.

Your annual gross salary of € exceeds the annual cap of €, so the capped amount is used instead.

Step 2: Calculate annual SI contributions

The annual contribution is calculated first and then allocated evenly across your selected pay periods ().
Annual insurable earnings base used: €

× % = per year

Step 3: Allocation across pay periods

÷ pay periods = per pay period/month

Note: If you select a 13th salary, the annual social insurance contribution is allocated across 13 pay periods, which reduces the per-period deduction while keeping the annual total unchanged.

2 GHS – how €/month (€/year) was calculated

Based on your gross monthly salary of (€ per year), GHS is calculated as follows:

Step 1: Determine if annual GHS cap is triggered

GHS is calculated on your annual earnings and is subject to an annual cap. For the cap is .

Your annual gross salary of € does not exceed the annual GHS cap, so your earnings are used for the calculation.

Your annual gross salary of € exceeds the annual GHS cap of €, so the capped amount is used instead.

Step 2: Calculate annual GHS contributions

The annual GHS contribution is calculated first and then allocated evenly across your selected pay periods ().
Annual earnings base used: €

× % = per year

Step 3: Allocation across pay periods

÷ pay periods = per pay period/month

Note: If you select a 13th salary, the annual GHS contribution is allocated across 13 pay periods, which reduces the per-period deduction while keeping the annual total unchanged.

3 Income tax – how €/month (€/year) was calculated

Based on your gross annual salary of , income tax is calculated using the progressive tax brackets as follows:

Step 1: Calculate net income
Gross annual salary
Less: Tax-exempt remuneration
Net income
Step 2: Determine the maximum amount of deductions

Your annual statutory deductions and personal allowances are:

Social insurance 1
GHS 2
Private medical insurance
Life insurance premiums
Pension/Provident fund contributions
Other Allowances
Total deductions

Cyprus tax law allows you to deduct statutory deductions and personal allowances, subject to a cap of 1/5 (20%) of your net income, so your maximum deductions limit is

Your total deductions of € are below the 20% cap, so you have an unused portion of €

Your total deductions of € exceed the 20% cap, so your total allowances are reduced by €.

Step 3: Calculate your taxable income

Your taxable income is determined by deducting the amount of deductions from your net income taking into account that they are limited to 1/5 of your net income.

Net income
Less: Total deductions
Less: Total deductions (capped to 1/5 of net income)
Taxable income

Your taxable income after deductions is

Step 4: Apply progressive tax brackets

Your taxable income of € is taxed progressively across the following brackets:

Taxable brackets for Rate € Tax
- %
- %
- %
- %
- %
- %
Personal income tax
Step 5: Allocation across pay periods

Annual income tax: €
Pay periods:
÷ = € per pay period/month

Tax rates summary

- Marginal tax rate: % (rate on your next Euro earned)
- Effective tax rate: % (actual tax paid on taxable income)

Note: Your employer deducts € monthly through the PAYE system. If you have 13 pay periods, the annual tax is spread across all 13 payments, reducing the per-period amount while keeping the annual total unchanged.

Explore scenarios & comparisons new
📊 2026 vs 2025 Reform
🌍 50% Expat Exemption Impact
🔄 What-if analysis
⚡ Optimize Deductions
📊
2026 Tax Reform Impact
Full comparison: 2025 vs 2026 tax rules, rates & allowances

The 2026 Cyprus tax reform introduced new allowances, updated SI/GHS caps, and adjusted tax brackets. This comparison runs complete calculations for both years to show the exact impact.

📅 2025 Tax Rules
Gross (yearly)
Social Insurance
GHS
Income Tax
Total Deductions
Net (yearly)
✨ 2026 Tax Rules (With Reforms)
Gross (yearly)
Social Insurance
GHS
Income Tax
Total Deductions
Net (yearly)
📋 What Changed in 2026:
🎯 Your 2026 Net Benefit
€—
🌍
50% Expat Exemption Impact
Compare your income with and without 50% expat tax exemption

The 50% expat exemption allows 50% of your gross salary to be tax-free (no cap). See exactly how much you save with this benefit.

📍 Without Expat Exemption
Gross (yearly)
Tax Exemption 0.00
Income Tax
Total Deductions
Net (yearly)
✨ With 50% Expat Exemption
Gross (yearly)
Tax Exemption (50%) +50%
Income Tax
Total Deductions
Net (yearly)
💡 How the 50% Exemption Works:
Gross Annual Salary
Amount Exempt from Tax (50%)
Taxable Income (50%)
Your Effective Tax Rate %
💰 Your Annual Tax Savings
€—

With the 50% expat exemption, you save in income tax per year compared to standard taxation.

Note: The 50% exemption applies to income tax only. Social Insurance and GHS contributions are calculated on full gross salary.

🔄
What-If Salary Analysis
See how salary changes affect your net income
📍 Current Salary
Gross (monthly)
Deductions
Net (monthly)
Net (yearly)
🎯 New Salary
Gross (monthly)
Deductions
Net (monthly)
Net (yearly)
💰 Net Income Change
Deduction Optimizer
Maximize your tax savings within the 1/5 cap

This feature is coming soon. Check back later for deduction optimization tools.

Disclaimer
Prepared by Certified Public Accountants using Cyprus employee PAYE rules applicable to the selected tax year.

The Cyprus tax calculator provided on this website is intended for informational purposes only. While we strive to ensure the accuracy of the calculator and the results it produces, please be aware that it is a tool designed to provide estimates based on the information provided.

The calculations generated by the tax calculator may not reflect your specific situation, as individual circumstances can vary. Additionally, tax laws and regulations are subject to change, and the calculator may not always reflect the most current updates.

The results obtained from the tax calculator should not be considered as professional tax advice or a substitute for consulting with a qualified tax professional. We strongly recommend seeking professional guidance for accurate and personalized tax calculations and advice tailored to your specific circumstances.

By using this calculator, you acknowledge that the results are indicative and should be independently verified before making financial or employment decisions.