In Barbados, Land Tax is calculated based on the value of the property as determined by the Land Valuation Department.
This tax is applied annually and is assessed on the improved value of the property, which includes both the land and any improvements on it, such as buildings and houses.
Current Land Tax Rates
The Land Tax rates in Barbados are incremental, meaning they increase as the value of the property increases. Rates can be updated due to legislative changes. The rates are typically structured as follows:
Improved Land (for Residential purposes)
- 0% for properties valued up to $75,000
- 0.1% for properties valued greater than $75,000 but not above $225,000
- 0.7% for properties valued greater than $225,000 but not above $425,000
- 1.0% for properties valued above $425,000
Calculation Example
Property value: $500,000
- First $75,000 is 0% tax
- Next $150,000 is 0.1% tax = $150
- Next $200,000 is 0.7% tax = $1,400
- Remaining $75,000 is 1% tax = $750
- Therefore, Total Land Tax is $2,300 per year
Previous Land Tax Rates
In Land Tax year 2019 -2020, there has been a change to the tax rates. They are as follows:
Improved Land (for Residential purposes)
- 0.0% on land valued up to $150,000
- 0.1% on the excess of the improved value greater than $150,000 but not exceeding $450,000
- 0.7% on the excess of the improved value greater than $450,000 but not exceeding $850,000
- 1.0% on the excess of the improved value greater than $850,000
*Please note that tax on improved land is calculated on the improved value of the land
Improved Land (for Non-Residential purposes)
- 0.95% on the improved value of each parecel of land on which there is a building other than a residence
Vacant Land
- 0.8% on the site value of vacant land measuring less than 4,000 sq. ft. or 371.6 M2
- 0.9% on the site value of vacant land measuring over 4,000 sq. ft. & valued up to $450,000
- 1.0% on the site value of vacant land measuring over 4,000 sq. ft. & valued over $450,000
*Please note that tax on vacant land is calculated on the site value of the land.