How is Land Tax Calculated?
In Barbados, tax is levied every year on land. There are 3 types of land:
- Improved Land (for Residential purposes)
- Improved land (for Non-Residential purposes)
- Vacant Land
From Land Tax year 2019 -2020, there has been a change to the tax rates which are as follows:
Improved Land (for Residential purposes)
- 0.0% of 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 parcel of land on which there is a building other than a residence
- 0.8% of the site value of land where the gross area of the lot is not greater 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 all other vacant lands
Please note that tax on vacant land is calculated on the site value of the land.
Land Tax Demand Notices (Land Tax) bills are issued annually and sent via post. Bills are required to be paid by March 31 the following year to avoid a penalty of 5% of the unpaid tax plus 1% interest per month on the principal and penalty.
Source: Barbados Revenue Authority Website