Land Tax is a property tax charged on all developed land throughout Bermuda with some exceptions. The tax is charged under the authority of the Land Tax Act 1967 and the Land Valuation and Tax Act 1967.
Land Tax is assessed on the annual rental value (ARV) of each valuation unit, depending on whether such unit is a private dwelling or any other dwelling. The owner of a valuation unit is liable for Land Tax.
No tax shall be charged, levied or collected on any valuation unit declared by the Minister of Finance by order published in the Gazette to be exempt from tax or exempted from tax under any other statutory provision.
Tax period means the six month period beginning January 1 and July 1 of each year. Land Tax is billed twice a year in January and July, and is payable in March and September.
Rate of tax - Private Dwellings
Private dwelling units are taxed on a progressive scale of tax rates. There are six annual rental value bands with the following rates of tax:
|Annual Rental Value Band
||Rate of Tax %|
||11,001 - 22,000
||22,001 - 33,000
||33,001 - 44,000
||44,001 - 90,000
||90,001 - 120,000
Bermudians who are sixty-five years or over, who own and occupy a private dwelling, are exempt from tax on the Annual Rental Value (ARV) of $50,000. Tax will be due on the value of the ARV which exceeds $50,000.
Rate of tax - Commercial Properties
Commercial properties are taxed on a single rate of tax of 4.4%.
Every person who is the owner of a valuation unit is required to pay Land Tax twice a year by the date specified in the Demand Note issued by the Tax Commissioner.
If Land Tax is not paid by the date specified in the Demand Note as the due date, interest calculated on a monthly basis at 7% will apply at the end of the month and every month thereafter on any outstanding balance.
The information contained on this page is merely a guide for the taxpayer and is not a comprehensive statement of the Legislative requirements. These requirements are contained primarily in the Land Tax Act 1967 and the Land Valuation and Tax Act 1967. Bermuda Laws Online can be accessed at www.bermudalaws.bm.
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