Cyprus personal income tax is famously bracket-driven, but the brackets are only half the story. The amount you actually owe depends on a stack of reliefs and deductions on top of Social Insurance and General Healthcare System contributions, with each relief carrying its own cap. The official IR59 (now TD59) declaration is the form every employee files with their employer once a year to claim those reliefs, and the form's "PAYE" (Pay-As-You-Earn) withholding figure is what the employer deducts each month.

This calculator runs the same logic. You enter the year you are filing for, your annual gross salary, your family status and number of children, any other income (pensions, rentals, other), and every relief you want to claim. The calculator picks the right brackets (the 2026 reform raised the thresholds and added new reliefs that are gated on a combined family income test), applies every cap automatically (life insurance is capped at 7% of the sum insured, pension contributions at 10% of income, personal deductions at 20% of taxable income, dependant relief at €1,000 for the first child, €1,250 for the second, €1,500 for the third and beyond), and shows the bracket-by-bracket breakdown of how the final tax was reached.

For the 2026 reform year, four combined family-income thresholds gate the new reliefs: €40,000 for single filers, €100,000 for families with up to two children, €150,000 with up to four, and €200,000 for five or more. If your combined household income is at or below your threshold, you qualify for the dependant relief (per-child amounts), the housing relief (€2,000 cap on main-residence rent or loan interest), and the energy or EV relief (€1,000 cap on a home energy upgrade or an electric vehicle purchase). Above your threshold, the brackets still apply but the new reliefs do not.

Foreign pensions and widow's pensions have a longstanding special-rate treatment: foreign pension income above €5,000 (€3,420 pre-reform) is taxed at a flat 5%, and widow's pension income above €22,000 (€19,500 pre-reform) is taxed at a flat 20%. Both special rates are opt-in: the calculator lets you choose the special rate, or fold the pension into normal brackets if that comes out lower.

Social Insurance and General Healthcare System are computed automatically: 8.8% of gross salary up to €68,904 for 2026 (€62,868 pre-reform), and 2.65% of combined GHS-subject income up to €180,000. You do not enter these. The first-employment deduction is capped at 50% of your gross salary by law and folded into the income side rather than the personal deductions side. The personal deductions cap (20% of taxable income, applied to pension contributions, health insurance, life insurance, disability insurance, Social Insurance, and GHS combined) is calculated and shown alongside your inputs so you can see how much of your claimed reliefs actually applied.

Use this calculator when you are filling in a TD59 for your employer, planning your tax strategy for the year, comparing the impact of the 2026 reform on your household, or simply checking your monthly PAYE deduction. Pair it with the Cyprus Gross-to-Net Salary Calculator when you want a quick estimate without entering every relief, and with the Cyprus PAYE Monthly Return (TD7) when you are an employer generating the monthly XML submission for the Tax Department.

Figures are processed on our server to compute the calculation, then discarded with the request. We do not persist or log anything you enter. For ongoing payroll with the full statutory submission lifecycle (TD7 monthly, TD7A annual, TD63A per-employee certificate, monthly SI schedule, SEPA bulk payments), Mantle's payroll module handles it end-to-end without you ever touching an XML file.