HAMILTON, Bermuda - The Bermuda government is projecting total revenue for fiscal year 2026/27 of US$2.09 billion, principally driven by corporate income tax and payroll tax receipts.
Premier David Burt said that the revenue is approximately US61.9millionabovetheoriginalbudgetestimateofUS2.02 billion with corporate income tax receipts pegged at US800million,US46.8 million above the original estimate, and payroll tax receipts of US650million,US15 million above budget.
He said that the current account expenditure is projected at US1.26billion,approximatelyUS14.5 million above the original estimate due to supplementary funding approved earlier this year, while capital expenditure remains on track at US$182 million.
Burt, who is also Finance Minister, said that his administration is projecting a budget surplus of US520millionfor2026/27,anestimatedUS47.3 million above the original projection of US$472.7 million.
He said this projection includes the supplementary estimate approved by Parliament in July, supporting Bermuda College, the Department of Corrections and the purchase and initial renovations of Compass Point.
He said the capital programme also includes US16.4millionforaffordablehousingthroughtheBermudaHousingCorporation,US12 million for the Bermuda Hospitals Board, US9.4millionforSwingBridgeandUS8.8 million for the Tynes Bay expansion.
“These figures demonstrate that we are continuing to manage expenditure responsibly while investing in Bermuda’s infrastructure and public services. At the same time, we will repay US$605 million Bermuda’s debt in January,” said in his mid-year review of the economy.
He said that since his administration returned to office, it has been its commitment that stronger public finances will not simply stop at celebrating larger surpluses on government balance sheets.
“We have continually said that improved fiscal performance must translate into tangible benefits for Bermudians. And most importantly, we have backed what we said with action,” Burt said, adding that throughout the last nine years, his government has taken action to provide relief to families with reductions in payroll taxes which have brought taxes on workers to the lowest levels in history.
“We have also reduced or eliminated customs duty on essential goods and fuel, alongside additional investment in critical social needs. As our financial position has strengthened, we have continued to provide further relief, most recently through the decision to again freeze fuel prices to protect households and businesses from record high global gas prices.”
But Burt acknowledged that the cost of living remains a significant challenge for many households, reminding that in October he had said he would outline further measures of relief in keeping with this
“Government’s commitment to share the benefits of stronger financial performance and provide more relief to the people of Bermuda. Some of these changes were intended to come into effect earlier this year, however the government wanted to ensure it had the funds to repay the $605 million in debt that this Government will retire next month.”
Burt said that as part of the Government’s Mid-Year Review, he is announcing more relief through further tax reductions, alongside additional investment in the services and programmes that directly improve the lives of Bermudians.
He said effective January 1, 2027, the government will reduce payroll taxes for every worker in Bermuda.
“These changes will reduce tax bills up to US1,560ayear,puttingmoremoneybackintothepocketsofhardworkingBermudiansatatimewhenhouseholdbudgetsremainunderpressure.NooneworkinginBermudawillpaymoreintaxes,andwillmeanthattheaverageworkerinBermudawillbepayingaboutUS2,500 less a year in payroll taxes,” he said.
He said that the government will also reduce the employer payroll tax rate by half a percentage point for all categories, providing relief to businesses of all sizes. Burt said additional concessions will extend the reduced rate for restaurants to takeaway food establishments, while registered trade unions and licensed credit unions will benefit from a reduced rate equivalent to the BHB & Municipal Corporations.
Additionally, the government will also provide land tax exemptions for sporting and social clubs.
Burt said that while many families rely on their cars to transport their loved ones around the island, the high prices for vehicles largely due to a tax put in place over 30 years ago that hasn’t changed.
“From January 1, in line with recommendations from the bi-partisan Tax Reform Commission, customs duty will be reduced to 50 per cent on the first US20,000ofvalue,reducingtheimportdutiesonprivatecarsbyuptoUS12,500.”
Burt said that the government is confident these measures will provide meaningful relief for workers, businesses and community organisations, “as we build on the tax reductions this government has delivered over successive budgets”
However, he said, while reducing taxes is helpful, the government must also continue to invest in Bermuda and Bermudians.
“Today, the Government is pleased to announce an additionalUS$19.5 million in expenditure for FiscalYear 2026/27, directed towards platform commitments and urgent needs identified across our community. These investments will support healthcare, housing, education, public safety, social development, and community organisations.”
Burt said an additional US$2.8 million, will be allocated to the Ministry of Health to support the introduction of a mobile health clinic, expansion of harm prevention programmes, additional support for those requiring overseas medical treatment, and essential upgrades to medical equipment and technology at our government facilities.
The Ministry of Housing and Municipalities will receive an additional US 2.5millionforsolarinstallationsinBermudaHousingCorporationhomes;andafurtherUS1.95 million will be allocated to the Ministry of Home Affairs to expand the balcony solar programme.
“These investments will provide more access to Bermudian families and seniors to renewable energy, leading to a reduction in their electricity costs,” Burt said, adding that an additional US$2.2 million, will be allocated to the Ministry of Youth, Social Development and Seniors to address critical social needs.
Burt said that the Ministry of Education will receive an additional two million dollars for increased funding to the Berkely Institute, upgrades to Cedarbridge Academy, the purchase of Sandy’s 360 to support the Signature School at Sandys Secondary, additional fundingfor scholarships and funding to deliver on our platform promise to provide Baby Boxes to the parents of newborn children.
He said an additional US$2.6 million, will be allocated to the Ministry of National Security to strengthen public safety and law enforcement capabilities, adding “this will mean more tools for our police to tackle crime, improved detection equipment at our border for Customs, upgraded protective equipment for our firefighters, and modernised facilities at the Royal Bermuda Regiment”.
Burt said that as he is prepare to conclude his tenure as Premier and Minister of Finance, Bermuda is in a stronger financial position than when he assumed office.
