Cyprus Tax Brackets 2026: Every Band Explained With Worked Examples
· Demetris D.
From 1 January 2026, Cyprus applies a new set of personal income tax brackets. They came in with the Cyprus Tax Reform Law, published in the Gazette on 31 December 2025, and they apply to employment income earned from 2026 onwards.
Here is the complete table.
The 2026 income tax brackets
| Taxable income | Rate |
|---|---|
| €0 to €22,000 | 0% |
| €22,001 to €32,000 | 20% |
| €32,001 to €42,000 | 25% |
| €42,001 to €72,000 | 30% |
| Above €72,000 | 35% |
Two things people get wrong about this table:
- The rates apply to taxable income, not your gross salary. Your social insurance (8.8%) and GeSY (2.65%) contributions are deducted first, and only what remains is taxed. This is why your effective tax rate is always lower than the bracket you "are in".
- Brackets are marginal. Moving into a higher band never reduces your net pay. Only the euros above each threshold are taxed at the higher rate.
Worked example: €30,000 gross
Take a €30,000 annual salary, paid over 12 months:
| Step | Amount |
|---|---|
| Gross salary | €30,000 |
| Social insurance (8.8%) | €2,640 |
| GeSY (2.65%) | €795 |
| Taxable income | €26,565 |
Now apply the brackets to €26,565:
| Band | Income in band | Tax |
|---|---|---|
| 0% up to €22,000 | €22,000 | €0 |
| 20% from €22,000 | €4,565 | €913 |
Total income tax: €913 per year. Net pay: €25,652 per year, about €2,138 per month. The effective tax rate is just 3.0% of gross, even though this salary "reaches" the 20% band.
Worked example: €45,000 gross
| Step | Amount |
|---|---|
| Gross salary | €45,000 |
| Social insurance (8.8%) | €3,960 |
| GeSY (2.65%) | €1,192.50 |
| Taxable income | €39,847.50 |
Applying the brackets:
| Band | Income in band | Tax |
|---|---|---|
| 0% up to €22,000 | €22,000 | €0 |
| 20% from €22,000 to €32,000 | €10,000 | €2,000 |
| 25% from €32,000 | €7,847.50 | €1,961.88 |
Total income tax: €3,962. Net pay: €35,886 per year, about €2,990 per month. Effective tax rate: 8.8% of gross.
How 2026 compares with 2025
The 2025 brackets started taxing at €19,500 and the middle bands sat at €28,000 and €36,300. The reform raised every threshold, which is why nearly every employee keeps more in 2026. On €30,000 the saving is €500 per year; at €100,000 it is about €1,454. The full comparison is in our 2026 vs 2025 reform breakdown.
Check your own salary
Run your exact number through the Cyprus salary calculator. It applies these brackets, the social insurance ceiling, the GeSY cap and the new family deductions, and shows the per band breakdown live.
Frequently asked questions
Which income do the brackets apply to? Taxable income: gross employment income minus social insurance, GeSY, and any deductions you qualify for under the reform, such as the new family and housing deductions.
Is the first €22,000 really tax free? Yes, for income tax. You still pay social insurance and GeSY on it, which is why a €22,000 salary nets €19,481 rather than the full amount.
Do the 2026 brackets apply to my 2025 income? No. Income earned in 2025 is taxed under the old brackets with the €19,500 threshold. The new table applies from 1 January 2026.
Where are the brackets published? In the Cyprus Tax Reform Law (Gazette, 31 December 2025), with summaries from PwC Cyprus, KPMG and EY tax alerts.