Is there income tax on salaries in the Bahamas?

No. The Bahamas does not tax personal income, so the only statutory payroll deduction is the employee's national insurance contribution of 4.65%. The employer adds 6.65%, both on wages up to the NIB ceiling.

How often does the NIB wage ceiling change?

NIB reviews the insurable wage ceiling every 2 years. On 1 July 2026 it rose from BSD 810 to BSD 830 a week, or BSD 3,597 a month. Employees who earn above the ceiling pay contributions only up to it.

How does Good Balance Global employ staff in the Bahamas?

As your Employer of Record (EOR), we hire your employee under a Bahamian contract, register them with NIB, and pay contributions each month. You keep control of the role and the work, and we handle payroll, records, and compliance with the Employment Act.

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Payroll and benefits guide

Bahamas

CapitalNassau

Fiscal Year1 January - 31 December

Date Formatmm/dd/yyyy

CurrencyBSD (Bahamian Dollar)

Payroll FrequencyMonthly

Employer Taxes6.65%

Employee Costs4.65%

Overview

Languages: English
Income tax: 0%
VAT: 10%; Reduced rates: 5%. Unprepared food sold by food stores has been relieved of VAT since 1 April 2026; 5% applies to selected medical supplies

Contributions

Employer

6.65%

National Insurance (NIB)Insurable wages capped at BSD 830/week (BSD 3,597/month) from 1 July 2026

6.65%

Total employer cost

Employee

4.65%

National Insurance (NIB)Same wage ceiling as the employer share

4.65%

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

National Insurance Board (NIB)

Paid To

Employer and employee national insurance contributions

Due Date

Monthly, for the previous month's payroll

Method

Contribution statement and payment to NIB

Minimum Wage & Working Hours

Minimum wage: BSD 260 / Weekly; About BSD 6.50 per hour; in effect since 1 January 2023
Standard working hours: 40 hours per week, 8 hours per day
Overtime: At least 1.5 times the regular rate

Leave

Annual leave2–3 weeks2 weeks after 1 year of service; 3 weeks after 7 years
Maternity leave12 weeksEligible employees can also claim a maternity benefit from NIB

Leave type	Duration	Notes
Annual leave	2–3 weeks	2 weeks after 1 year of service; 3 weeks after 7 years
Maternity leave	12 weeks	Eligible employees can also claim a maternity benefit from NIB

Termination

13th salary: Not mandatory

FAQ

Sources

Last updated: November 1, 2026

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