Corporation Taxes

Explanation of Property Taxes Levied within the Municipal Area of the City of Hamilton

Each December the Corporation of Hamilton approves by resolution an amendment to the Hamilton Rating Ordinance 1972, the effect of which is to establish property tax rates for the coming fiscal year.

There are separate taxation rates for residential and business premises, as well as a rate for the occupier and another rate for the owner. The total tax payable is computed by multiplying the appropriate tax rate percentage by the Annual Rental Value, which is established for the property by the Land Valuation Department of the Bermuda Government.

Details of the various rates and their application are described in the examples below. The examples are based on applicable tax rates in 2006.

Example (i) – Business premises with an Annual Rental Value (ARV) of $50,000 which is owned and occupied by different individuals:

Example (ii) – Residential premises with an ARV of $42,000 which is owned and occupied by different individuals:

NB: Where the premises are owned and occupied by the same individual, then both parts of the tax is due and payable by that person.

Tax assessments for each property valuation unit are billed by the Corporation of Hamilton in two equal installments in January and July each year. A 5% rebate is currently available if the tax assessment is paid within a prescribed period following the billing.