Residential Property
Tax Rate is : 0.25%
Residential real estate includes houses, condominiums, and townhouses. The structures may be single or multi-family dwellings and may be owner-occupied, but not rented for income.
Valuation and Payment Guide
Property value X Tax = Amount to be paid
e.g 50000 x 0.0025 = $125
Commercial / Industrial Property
Tax Rate is : 1.5%
A commercial and industrial real estate building is any structure in which a business activity is pursued. They include office buildings, warehouses, and retail buildings (e.g. convenience stores, ‘big box’ stores, and shopping centers).
Valuation and Payment Guide
Property value X Tax = Amount to be paid
e.g 50000 x 1.5% = $700
Vacant Land within city limits
Tax Rate is : city or town lot = 5%, Farmland 4%; Acre or above (vacant land) 5%
Land that is vacant within the city will attract taxes and individuals owning said properties have to take note.
Valuation and Payment Guide
Property value X Tax = Amount to be paid
- City Lot: e.g 50000 x 0.05 = $2500
- Farmland: e.g 50000 x 0.04 = $2000
- Farmland (above an acrea) e.g 50000 x 0.05 = $2500
farmland within urban areas
Tax Rate is : 0.33%
Relates to farmland that is within the urban areas – within the city.
Valuation and Payment Guide
Property value X Tax = Amount to be paid
e.g 50000 x 0.0033 = $165
Farm outside Urban Areas
Tax Rate is : 0.25%
This relates to farms that are in the countryside and outside urban areas.
Valuation and Payment Guide
Property value X Tax = Amount to be paid
e.g 50000 x 0.0025 = $125
Building/Improvement on Public Land
Tax Rate is : Commercial Building 1% and Residential Building 0.14%
Valuation and Payment Guide
Property value X Tax = Amount to be paid
- Commercial building: e.g 50000 x 0.01 = $500
- Residential building: e.g 50000 x 0.0014 = $70
Unit within city or town limits:
Tax Rate is : City or town lots 3.5%; Farmland 4%; Acre or above (vacant land) 4.5%
Valuation and Payment Guide
Property value X Tax = Amount to be paid
e.g 50000 x 0.0025 = $125
Property value X Tax = Amount to be paid
- City Lot: e.g 50000 x 0.035 = $1,750
- Farmland: e.g 50000 x 0.04 = $2000
- Farmland (above an acrea) e.g 50000 x 0.045 = $2250
Unit outside city or town limits:
Tax Rate is : All land (without building) LRD $5.00 per acre
Valuation and Payment Guide
Property value X Tax = Amount to be paid
e.g 50000 x 0.0025 = $125
Self-assessment rule: Each property owner is required to make self-assessment and pay real property tax following the guidance below:
Step 1: Measure the size of your property or take property size from ownership certificate for:
- Land
- The building or other structure
Step 2: Value land and building separately using either of the following methods:
Valuation Method one: Use the property value provided by assessors approved by the LRA and put in the return form as follows:
- Land size in square feet, lot or acre and the estimated assessed value
- Building/structure size in square feet and estimated assessed value
Owners with high-end commercial properties with total areas of more than 2,000 square feet are required to hire an approved architectural/engineering firm to conduct the valuation. The firm should provide a notarized appraisal booklet with the property value (such value is valid for five (5) years), and put this value in the return form and pay the tax accordingly.
Valuation Method two: Taxpayers, including those having low-end commercial properties (low-end commercial properties with total areas less than 2000 square feet), should do own valuation if assessors value is not available:
- For properties purchased with documents, use the amount paid or the fair market value if higher than the purchased price; separate the land value from the building /structure value
- For properties where the owner does not have bought documents, make their own best estimate of fair market value for land and building/structure separately and add the two costs to determine the total amount of
Step 3: Apply appropriate tax rate (0.25% for residential property or 1.5% for an income-producing property) on the total estimated market value of land and building and determine the amount of tax as shown in the following example:
The formula for determining tax amount = DECLARED MARKET VALUE * TAX RATE
Example: Declared total value of both land and building/structure for residential property = US$ 10,000.00
Tax amount = 10,000.00 * 0.25% (.0025) = US$ 25.00 for one year
If payment is for more than one year, for example, two (2) years, Tax Amount = US$ 25 times two = US$50.
Step 4: Deposit the tax amount to a commercial bank. After that, submit the return to LRA via email at info@lra.gov.lr or to any office of the LRA.
Optionally, go to LRA Head Office or any nearby tax office and make cash payments for amounts below US$
250.00. For funds above US$ 250.00, obtain a manager’s check for the tax amount from any commercial bank and make payment to LRA Head Office or any nearby tax office.
TIN: Property owners who have no Taxpayer Identification Number (TIN) must obtain TIN from LRA offices to make payment.
Return form: Download return or declaration form from the LRA website or get a hard copy from any of the LRA offices
Disclaimer: The LRA maintains its rights to revise and impose an additional tax on properties valued by the taxpayer applying valuation method two (2) above in case of understatement of value by the property owner.
