Methodology - Gibraltar (2026)

Educational model - not an Income Tax Office assessment, not a tax return, not tax advice.

Employee

Gibraltar lets a taxpayer be taxed under whichever system gives the lower bill: the Gross Income Based System (GIBS) or the Allowance Based System (ABS). This calculator computes both and applies the lower one.
GIBS taxes gross income with no allowances; the band structure switches at GBP 25,000 of gross income (a lower-income set of bands up to GBP 25,000 and a higher-income set above it).
ABS taxes income after allowances at 14%, 17% and 39%. The personal allowance is GBP 3,455. A tax credit applies, equal to the greater of GBP 300 or 2% of the tax. A low-income exemption removes tax on earned income up to GBP 11,450.
Social insurance (employee): 10% of earnings, subject to a weekly minimum of GBP 14.34 and a weekly maximum of GBP 40.79.
Out of scope: the employer social insurance rate and caps, the detailed GIBS deductions and allowances (mortgage, pension, health), and the timing of assessment and payment.

Net profit = revenue - expenses, taxed under the lower of GIBS (gross-income bands switching at GBP 25,000) and ABS (14% / 17% / 39% after the GBP 3,455 personal allowance, the greater of GBP 300 or 2% tax credit, and the low-income exemption on earned income up to GBP 11,450).
Social insurance (self-employed): 10% of income, subject to the weekly minimum of GBP 14.34 and weekly maximum of GBP 40.79.
Out of scope: capital allowances, loss relief, the detailed ABS deductions, and the timing of assessment and payment.