Payroll Tax Amendment and Validation Act 2026

What this bill does

This bill reduces payroll taxes for most employers and employees in Bermuda, while creating special tax breaks for seniors over 65, new hires, and certain industries. It also fixes a gap where musicians and entertainers lost their tax exemption when it expired.

If passed (voted YES)

• Most employers will pay 0.5% less in payroll tax (down from 10.25% to 9.75%), and employees earning under $96,000 will see tax reductions
• Bermudians aged 65+ will pay no payroll tax on their first $24,000 of income (excluding bonuses)
• Hotels, restaurants, care homes, and small businesses get reduced tax rates, while qualifying employers can get relief from payroll tax on new employees they hire
• Musicians and entertainers keep their 0% payroll tax rate permanently

If rejected (voted NO)

• Current payroll tax rates stay the same, meaning higher costs for most employers and employees
• Seniors over 65 continue paying full payroll tax on all their income
• The hospitality industry and small businesses don't get the promised tax relief to help with hiring and operations
• Musicians and entertainers remain in limbo without clear tax exemptions

Who it affects

This affects nearly all working Bermudians and their employers, with the biggest benefits going to seniors over 65, people earning under $96,000, and those working in hotels, restaurants, care homes, and the entertainment industry.