Personal Income Tax Calculator
Calculate your annual income tax liability with full band breakdown
Your own social insurance and GESY are tax-deductible. Together with provident/pension fund contributions and life insurance premiums, the relief is capped at 1/5 of your income.
Optional deductions (children, housing, green energy)
Deductions: €1,000 (1st), €1,250 (2nd), €1,500 (3rd+)
Conditions apply from 2026: rent must be paid electronically from 1 July 2026; qualifying green spend above the cap may be carried forward up to 4 years. The child, housing and green deductions are all means-tested on gross household income (€40,000 single, up to €200,000 for larger families) — this calculator does not check that.
Example: €42,000 taxable income
• First €22,000 — 0% = €0
• €22,001–€32,000 (€10,000) — 20% = €2,000
• €32,001–€42,000 (€10,000) — 25% = €2,500
Total tax: €4,500 | Effective rate: 10.7% | Net: €37,500
No deductions applied in this example. With 2 children, tax drops to €3,938.
How This Is Calculated
Cyprus uses a progressive tax system. Only the portion of income within each band is taxed at that band's rate. Before the bands are applied, deductions for children, housing and green energy come off, and then your own social insurance, GESY, provident fund and life insurance payments (capped at a fraction of income). The effective rate is your total tax divided by gross income; the marginal rate is the rate on your highest euro of taxable income.
Frequently Asked Questions
How does the progressive tax system work?
Your income is split into bands. Only the portion in each band is taxed at that band's rate. For example, if you earn €50,000, the first €22,000 is tax-free, €10,000 is at 20%, €10,000 is at 25%, and €8,000 is at 30%. This means your effective (average) rate is always lower than your marginal (top band) rate.
What deductions are available?
Three main deductions reduce taxable income: child allowances (€1,000, €1,250, €1,500 per child, doubled for single parents), up to €2,000 for housing costs (rent or mortgage interest), and up to €1,000 for green energy upgrades or electric vehicle purchases. Other deductions such as life insurance premiums and pension contributions may also apply.
Are social insurance and GESY included?
Your own social insurance (8.8%) and GESY (2.65%) are deductible from taxable income, so this calculator deducts them automatically when you choose employee or self-employed — together with any provident fund and life insurance, up to 1/5 of income. The contributions themselves are paid on top of income tax: use our Net Salary Calculator to see your take-home pay after every deduction.