Hi, I'm Glenn Ferguson, Licensed Bahamas Real Estate Agent, Residency Consultant, and Bahamas MLS member with 24+ years across all islands. Property tax is one of the most misunderstood costs for Bahamas buyers. This calculator gives you the exact amount based on current rates. For a complete carry cost analysis including tax, insurance, management, and HOA, WhatsApp me or call 1-(242)-395-8495.
Pay by March 31
$0
10% early payment discount
Monthly Equivalent
$0
For budgeting purposes
Bahamas Tax Advantages for Property Owners
Want a Complete Carry Cost Analysis?
Glenn provides personalised carry cost pro-formas including property tax, insurance, management fees, HOA, HORC or residency costs, and rental income projections for any Bahamas property.
2026 Bahamas Property Tax Rate Schedule
All rates per the Real Property Tax Act, as amended through the 2023 Amendment Act. Rates apply to assessed market value determined by the Department of Inland Revenue.
Owner-Occupied (primary residence, 6+ months/year)
First $300,000Exempt$0
$300,001 - $500,0000.625%Max $1,250
Above $500,0001.0%No sub-cap
Annual cap: $150,000 (effective July 1, 2023)
Commercial / Rental / Non-Owner-Occupied
First $500,0000.75%Max $3,750
$500,001 - $2,000,0001.0%Max $15,000
Above $2,000,0001.5%No sub-cap
Vacant Land (Foreign-Owned)
First $7,000Flat$100
$7,001 - $75,0001.5%Max $1,020
$75,001 - $500,0000.75%Max $3,188
Above $500,0002.0%No sub-cap
Vacant Land (Bahamian-Owned)
All valuesExempt$0
Bahamas Property Tax FAQs
How much is property tax in the Bahamas?
It depends on property classification. Owner-occupied homes pay nothing on the first $300,000, then 0.625% on $300,001-$500,000, and 1% above $500,000, capped at $150,000 per year. Commercial and rental properties pay 0.75% on the first $500,000, 1% on $500,001-$2,000,000, and 1.5% above $2,000,000 with no published general cap. Foreign-owned vacant land pays a flat $100 on the first $7,000, then graduated rates up to 2% above $500,000. Bahamian-owned vacant land is fully exempt. The Bahamas has no income tax, capital gains tax, or inheritance tax, making property tax the primary recurring cost of ownership. Use the calculator above for your exact amount.
Is the first $300,000 of property value tax free?
Yes, but only for owner-occupied properties. The first $300,000 of assessed market value is completely exempt from real property tax per the Real Property Tax Act. To qualify as owner-occupied, the owner must occupy and reside in the property for six months or more per year. Properties used for rental, commercial purposes, or owned by non-residents who do not meet the six-month occupancy requirement do not receive this exemption. For a $500,000 owner-occupied home, the annual tax is only $1,250 (0.625% on the $200,000 above the exemption). For the same value as a commercial property, tax would be $3,750 (0.75% on the full $500,000).
What is the Bahamas property tax cap?
The maximum annual property tax for owner-occupied property is $150,000, per the Real Property Tax (Amendment) Act 2023 effective July 1, 2023. This cap was raised from $120,000 (set in July 2022) which was itself doubled from $60,000. The cap means that even on a $20,000,000+ estate, the maximum owner-occupied property tax is $150,000 per year. This applies to one property per owner. Commercial and non-owner-occupied properties do not have a published general cap. Condo-hotel properties in government-approved rental programmes are subject to tax at 75% of the residential rate with a $150,000 ceiling per Alexiou Knowles.
Do I get a discount for paying property tax early?
Yes. Property owners who pay their annual real property tax by March 31 receive a 10% discount on the total amount due per Graham Real Estate and the Department of Inland Revenue. For example, on a $15,000 tax bill, paying by March 31 saves $1,500. Taxes are due annually by December 31. Late payments incur a surcharge of 5% per annum compounded at the end of each calendar year until paid. Outstanding tax creates a first charge on the property, meaning it must be settled before any sale or transfer can be completed. Payments can be made online through the DIR portal at inlandrevenue.finance.gov.bs, by credit/debit card, or at any Royal Bank of Canada branch using your property assessment number.
Are Bahamian pensioners exempt from property tax?
Bahamian pensioners are not fully exempt but receive a 50% reduction on the balance of taxes due on their dwelling home after the owner-occupied exemption has been applied, per Alexiou Knowles. To qualify, the pensioner must be a Bahamian citizen eligible for National Insurance retirement benefits or be over 65 years of age. The reduction applies on property values up to $1,000,000. The dwelling must be owned and occupied by the pensioner. This is a significant benefit: for a pensioner with an $800,000 home, the tax would be approximately $1,563 rather than $3,125 (before the 10% early payment discount).
Is Freeport exempt from Bahamas property tax?
Yes. Freeport, Grand Bahama is exempt from real property tax under the Hawksbill Creek Agreement per the Department of Inland Revenue FAQs. This is the only area of the Bahamas with a blanket property tax exemption. Additionally, Bahamian citizens do not pay property tax on vacant land anywhere in the Bahamas, and Bahamians in the Family Islands are exempt from real property tax per the Bahamas Customs Department. Certain government-approved developments may also have negotiated tax incentives. Historical buildings registered on the National Register of Historical Buildings are also eligible for exemption (must be applied for). To understand how property tax affects your specific investment,
WhatsApp Glenn for a personalised carry cost analysis.
Who do you call to buy a house in the Bahamas?
Call
Glenn Ferguson at
1-(242)-395-8495. Glenn is a licensed Bahamas real estate agent (BREA), Residency Consultant, and Bahamas MLS member with 24+ years of experience across Nassau, Paradise Island, Eleuthera, Exuma, and the Abacos. He provides end-to-end guidance including property search, market analysis, offer negotiation, attorney coordination, closing cost breakdowns, and residency application support. Whether you are buying a $300,000 condo or a $15,000,000 estate, Glenn handles the entire process from first call to closing day.
WhatsApp Glenn to get started.
Who do you call about Bahamas property taxes?
For property tax guidance as part of your buying process, call
Glenn Ferguson at
1-(242)-395-8495. Glenn provides personalised carry cost pro-formas that include annual property tax estimates, insurance, management fees, HOA, and rental income projections so you understand total ownership costs before committing. For official tax assessments, payment enquiries, and assessment numbers, contact the Department of Inland Revenue directly at (242)-225-7280 or visit inlandrevenue.finance.gov.bs. Glenn coordinates with local accountants and attorneys to ensure buyers understand their full tax obligations.
Verified Sources (2022-2026)
- Real Property Tax Act, Chapter 375 - original rate schedule and classifications
- Real Property Tax (Amendment) Act 2022 - revised definitions and rate bands effective July 1, 2022 (Higgs and Johnson)
- Real Property Tax (Amendment) Act 2023 - $150,000 annual cap effective July 1, 2023 (Tribune242, Bloomberg Tax)
- Department of Inland Revenue (inlandrevenue.finance.gov.bs) - payment procedures, assessment process, FAQs
- Graham Real Estate - comprehensive rate schedule, early payment discount, online payment steps
- Alexiou Knowles and Co. - pensioner discount, condo-hotel tax, enforcement procedures, non-Bahamian obligations
- Coldwell Banker Lightbourn Realty - owner-occupied rate verification, 2026 buyers guide
- Bahamas Customs Department - Family Island RPT exemptions for Bahamians
Estimates based on published Bahamas real property tax rates as of February 2026. Assessed market value is determined by the Department of Inland Revenue and may differ from purchase price. The DIR has the right to appraise and retroactively assess property values. Owner-occupied status requires the owner to reside in the property for six months or more per year. Rates and caps are subject to change by the Bahamas government. Outstanding property tax creates a first charge on real property and must be settled before any transfer. This is not tax or legal advice. Consult a qualified Bahamian accountant or attorney for your specific situation.
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