Updated 2026 - Real Property Tax Act, as amended 2023
Bahamas Property Tax Calculator 2026
Enter your property value below and get an instant, accurate annual property tax figure - including owner-occupied, rental, and condo-hotel rates. Correct progressive formula, not a flat-rate estimate.
Quick AnswerLast verified June 2026 - Department of Inland Revenue rates
What Is the Bahamas Property Tax Rate in 2026?
Owner-Occupied
First $300K exempt • 0.625% on $300K-$500K • 1% above $500K • $150,000 cap
$1M home = $6,250/yr
Rental / Investment
0.75% on first $500K • 1% on $500K-$2M • 1.5% above $2M • no cap
$1M rental = $8,750/yr
Condo-Hotel Programme
0.46875% of value (75% of the 0.625% residential rate) • $150,000 cap • offset by net VAT on rentals
Your actual tax depends on the Department of Inland Revenue assessed value, not the listing price. Send me the property address and I will confirm the assessed value, the exact bracket, whether condo-hotel rates apply, and your true annual cost of ownership before you make an offer.
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Common questions about Bahamas property tax rates, condo-hotel tax, payment deadlines, and investment impact. Verified by Glenn Ferguson, BREA #245.
Bahamas property tax uses progressive rates per the Real Property Tax Act, as amended in 2023.
Owner-occupied: First $300,000 fully exempt. 0.625% on the portion from $300,001 to $500,000. 1.0% on everything above $500,000. Total capped at $150,000/year.
Rental and non-owner-occupied: 0.75% on first $500,000. 1.0% on $500,001 to $2,000,000. 1.5% above $2,000,000. No annual cap.
Condo-hotel approved programmes: 75% of the 0.625% residential rate, which is 0.46875% of assessed value. Capped at $150,000/year and offset by the net VAT collected on the unit's rentals. Applies to condos in designated hotel programmes at Baha Mar, Goldwynn, and Aqualina.
Annual property tax on a $1,000,000 condo depends on use:
Owner-occupied: $6,250/year (first $300K exempt, 0.625% on $200K = $1,250, plus 1% on $500K = $5,000)
Rental/investment: $8,750/year (0.75% on $500K = $3,750, plus 1% on $500K = $5,000)
Condo-hotel programme: $4,688/year (0.46875% of $1,000,000, before any net VAT offset)
Pay before 31 March for a 10% discount: $5,625, $7,875, or $4,219 respectively.
Yes. Owner-occupied residential properties are fully exempt on the first $300,000 of assessed value. A property assessed at $300,000 or less used as the owner's primary residence pays zero property tax. For properties above $300,000, only the portion above that threshold is taxed. The exemption does not apply to rental, investment, or vacation properties.
The condo-hotel tax applies to condominiums enrolled in a government-approved hotel rental programme. The rate is 75% of the 0.625% residential rate - 0.46875% of assessed value - capped at $150,000/year, and reduced by the net VAT collected on the unit's rental income (if net VAT exceeds the tax, none is payable).
Nassau buildings where this has applied include the Baha Mar branded residences (Grand Hyatt, Rosewood, SLS), The Residences at Goldwynn, Aqualina, and One Cable Beach - all of which operate managed rental programmes.
Qualification requires the specific programme to hold government approval. Always confirm condo-hotel tax eligibility with a licensed Bahamian attorney before purchase.
Property tax is assessed annually. Paying in full on or before 31 March earns a 10% discount. After that date the full undiscounted amount applies. Unpaid property tax accrues interest and creates a statutory first charge on the property - no sale, title transfer, or mortgage refinancing can legally complete until all outstanding tax is settled and a clearance letter is obtained from the Department of Inland Revenue.
Property tax is calculated on the Department of Inland Revenue assessed value, which is independently set by the government and can differ from the purchase price. For EPR residency purposes the assessed value is the qualifying figure - a purchase price of $1.1M does not guarantee a $1M assessed value. I request confirmation of the current assessed value from the Department of Inland Revenue for every property I handle before the offer is submitted.
Property tax payment does not determine EPR eligibility - the qualifying threshold is the $1,000,000 assessed value (effective January 2025). However, a clear property tax account is important because outstanding tax creates a first charge on the property. Immigration may request evidence of clear title during the residency application. I advise all EPR applicants to keep their property tax current from day one and obtain a clearance letter before submitting the residency file. See the full Bahamas residency by investment guide for the complete process.
Your actual tax depends on the government assessed value - not the listing price.
Send me the property address and I will confirm the assessed value, the exact rate bracket, and whether condo-hotel rates apply before you make an offer.
Progressive under the Real Property Tax Act, as amended in 2023. First $300,000 is fully exempt. The portion from $300K to $500K is taxed at 0.625%. Everything above $500K is taxed at 1.0%. Total tax is capped at $150,000 per year regardless of property value. Pay before 31 March for a 10% discount. This rate applies only to the primary residence of the owner, occupied at least six months a year.
Rental / Non-Owner-Occupied Rate
Also progressive, but higher and with no cap. First $500,000 is taxed at 0.75%. The portion from $500K to $2M is taxed at 1.0%. Everything above $2M is taxed at 1.5%. This rate applies to all properties not used as the owner's primary residence - vacation homes, investment condos, and long-term rental properties. Pay before 31 March for a 10% discount.
Condo-Hotel Rate
Applies to condos enrolled in a government-approved hotel rental programme such as those at Baha Mar (Grand Hyatt, Rosewood, SLS), Goldwynn, and Aqualina. The rate is 75% of the 0.625% residential rate - that is 0.46875% of assessed value - capped at $150,000 per year, and offset by the net VAT collected on the unit's rental income (if net VAT exceeds the tax, none is payable). This is a significant saving over the standard rental rate for higher-value units. Confirm eligibility with your attorney before purchase.
10% Early Payment Discount
Paying your annual property tax in full before 31 March earns a 10% discount on the amount due. This is worth applying for every year - on a $2,000 annual bill the saving is $200; on a $15,000 bill it is $1,500. Conversely, unpaid property tax accrues interest and creates a statutory first charge on the property that must be cleared before any sale can complete.
Assessed Value vs Purchase Price
Property tax is calculated on the Department of Inland Revenue assessed value, which is set by the government and is not always the same as the purchase price. For EPR residency purposes, the assessed value is what determines eligibility - a $1.1M purchase price does not guarantee a $1M+ assessed value. I confirm the assessed value before structuring any purchase for residency purposes.
Payment and Enforcement
Property tax is payable annually to the Department of Inland Revenue. Payment by 31 March earns the 10% discount. Unpaid tax creates a first statutory charge on the property - no sale, refinancing, or transfer of title can complete until the tax account is clear. In practice this means a title search at closing always includes a property tax clearance check. I verify this for every transaction I handle.
Disclaimer: This calculator provides estimates based on the Real Property Tax Act as amended in 2023 and rates confirmed with the Department of Inland Revenue. Actual tax may vary based on the government-assessed value of your specific property, which may differ from the purchase or market price. Condo-hotel tax is 0.46875% of assessed value (75% of the 0.625% residential rate) and is offset by the net VAT collected on rentals, so the figure shown is before any VAT offset and subject to the specific programme approval for your building. This is not legal or tax advice. Always confirm your property tax liability with a licensed Bahamian attorney or the Department of Inland Revenue before making a purchase decision. Glenn Ferguson is a BREA Licensed Real Estate Agent (#245) and Bahamas MLS Member, Nassau, The Bahamas.
Not sure which rate applies to the property you are considering?
I verify the correct classification, confirmed assessed value, and applicable tax bracket for every condo and home I sell - at no cost to buyers.
"Property tax is the number that surprises condo buyers most after closing costs - especially on higher-value units where the non-owner-occupied rate applies with no annual cap. A $2 million rental condo carries $18,750 per year in property tax. The same unit enrolled in an approved condo-hotel programme is taxed at 0.46875%, roughly $9,375, and in practice the net VAT collected on its rentals is offset against even that, so an actively rented unit may owe little or nothing. I confirm the applicable rate and the Department of Inland Revenue assessed value for every condo I sell before the offer goes in. The assessed value is not always the purchase price, and for EPR residency purposes it is the assessed value that determines qualification at the $1 million threshold."
This calculator uses the progressive formula from the Real Property Tax Act as amended in 2023, not the flat-rate estimates that appear on most Bahamas real estate websites. Every figure has been verified against published Department of Inland Revenue rates.
