Understanding the New Property Tax Framework in Sierra Leone Explained

If you own property in Sierra Leone, or plan to, the rules around property tax have changed significantly. Over the past few years, local councils, starting with Freetown and now expanding to cities like Kenema, Bo, and Makeni, have moved from a patchy, inconsistent system to a structured national framework. This guide breaks down what changed, why it matters, and what you need to do.

Why the Old System Was a Problem

Before the reforms, property tax collection in Sierra Leone was largely manual and deeply unreliable. Assessors would visit properties and assign values based on personal judgment, which opened the door to inconsistency, under-reporting, and informal payments to avoid proper assessment. Many properties were simply never registered at all.

The result: local councils, which depend on property tax as a major source of internally generated revenue, were collecting far below their potential. In Freetown, for example, only around 57,000 properties were on the tax roll, in a city with many times that number of buildings. Revenue collection was low, and public services suffered for it.

What the New Framework Actually Does

The reformed system rests on three core changes: a new valuation method, a digital property database, and stronger enforcement rules.

A Points-Based Valuation System

The biggest shift is how properties are valued. The old method relied on subjective market assessments. The new system, developed with support from the International Centre for Tax and Development (ICTD) and the International Growth Centre (IGC), uses a points-based model.

Every property is assessed based on observable, objective characteristics:

• The size of the building (floor area or footprint)

• Location and neighborhood infrastructure

• Construction materials (concrete walls score higher than mudbrick)

• Roof type and condition

• Access to amenities like electricity, piped water, or a paved road

• Whether the property is used for residential, commercial, or mixed purposes

These factors combine into a total score. A standard tax rate is then applied to that score to produce your annual tax bill. Because the criteria are fixed and publicly known, there is much less room for an assessor to apply personal discretion or for a property owner to negotiate informally.

A Digital Property Database

Alongside the new valuation method, councils have built digital property registers backed by GIS mapping. Freetown's property database grew from roughly 57,000 registered properties to over 120,000 during the reform process. The same expansion is now underway in Makeni, Bo, and Kenema.

This matters because a property that is not in the database is effectively invisible to the tax system. As digital registration expands, that gap is closing.

Stronger Enforcement

The Finance Act 2024 and subsequent legislation have given councils stronger tools to follow up on non-payment. Enforcement notices began going out in December 2024 for properties in non-compliance. The Finance Act 2025 also set clearer filing deadlines and tightened the rules around discretionary exemptions, reducing the ability to use connections to sidestep obligations.

How Property Tax Is Calculated

Each local council sets its own millage rate, which is applied to a property's assessed value or points score. Residential rates are generally lower than commercial rates. The Freetown City Council, for example, applies its rate to the "annual value" of the property, a figure derived from the points system.

The Finance Act 2024 also maintained a 10% withholding tax on gross rental income for properties earning above NLe 1,800 annually in rent, meaning landlords who earn rental income have a separate obligation to the National Revenue Authority (NRA) on top of any local council rates.

There is also a 30% capital gains tax on profits made when selling property that is classified as a business asset.

Who Is Exempt

Not all properties attract property tax. Under the Local Government Act 2022, the following are generally exempt:

• Government-owned buildings (unless leased to private entities)

• Places of worship, including mosques and churches used strictly for religious purposes

• Non-profit schools and university facilities

• Properties owned by diplomatic missions and international organizations with immunity

• Properties used exclusively for public charitable purposes

Some councils also exempt very low-value properties, such as informal or unimproved structures, below a defined threshold. You should confirm the specific threshold with your local council, as it varies by area.

Where the Reform Has Been Rolled Out

Freetown

The pilot city. The reform launched here around 2019 and has produced the most measurable results, with revenue from property tax nearly tripling under the new system. Property tax now accounts for roughly 42% of Freetown City Council's internally generated revenue.

Kenema and Bo

The second wave of implementation. Both cities have adopted the points-based model and are building out their digital property registers. The national government is working to harmonize valuation methods across all councils to ensure consistency.

Makeni

The most recent addition. The reformed system became operational in Makeni in 2025. Enforcement notices for non-compliance began going out in December 2024, signaling that the city is now moving from registration to active collection.

How to Pay Your Property Tax

Property tax bills are issued by your local council, typically in the first quarter of each year. You can pay through several channels:

• Direct bank deposit at designated commercial banks, including the Sierra Leone Commercial Bank and Rokel Commercial Bank, using your assessment notice

• The Freetown City Council's digital property tax portal (for Freetown residents)

• Mobile money services such as Orange Money and Afrimoney, which are increasingly accepted

• In person at your City or Town Hall finance office

If you have not yet received a bill and believe you should have, contact your local council to check whether your property is on the register. With enforcement stepping up, waiting for a notice to arrive is no longer a safe strategy.

What This Means for Diaspora Property Owners

Sierra Leoneans living abroad who own property back home are equally subject to local property rates. If you own a house or commercial building in Freetown, Kenema, Bo, or Makeni, you are expected to pay the applicable annual rates regardless of where you reside.

The expansion of digital billing and mobile payment options makes this more accessible than before. Still, many diaspora owners rely on family members to manage payments locally. It is worth confirming that your property is correctly registered and that payments are being made on time, since non-payment penalties apply regardless of residence.

If you earn rental income from your Sierra Leonean property, the 10% withholding tax on rent also applies to you. Tenants paying rent may be required to deduct this at source and remit it to the NRA.

The Bigger Picture

Property tax reform in Sierra Leone is part of a broader push to grow domestic revenue and reduce reliance on external aid. The government's target was to increase national tax revenue from NLe 14.9 billion in 2024 to NLe 18.9 billion in 2025. Local councils play a direct role in that effort, and property tax is their primary lever.

When councils collect more, they have more to spend on roads, drainage, waste management, and local services. The link between paying your rates and the quality of your neighborhood is direct, even if it rarely feels that way.

The reform is not perfect. Many properties are still unregistered. Enforcement capacity varies across councils. And low-income property owners, particularly in informal settlements, still face uncertainty about where they fall in the system. These are real gaps that advocates, civil society groups, and policymakers continue to raise.

But the direction of travel is clear: Sierra Leone is building a more structured, transparent, and enforceable property tax system. Knowing how it works puts you in a better position to comply, to question assessments that seem incorrect, and to hold councils accountable for how the revenue is used.

Key Takeaways

• Property tax in Sierra Leone is administered by local councils under the Local Government Act 2022

• A new points-based valuation system replaces subjective manual assessments

• The reform has rolled out in Freetown, Kenema, Bo, and most recently Makeni

• Bills are issued annually; payment is available via bank, mobile money, or in person

• Exemptions apply to government buildings, places of worship, diplomatic missions, and qualifying charities

• Rental income is separately taxed at 10% withholding by the NRA

• Diaspora property owners are equally liable and should verify their property is registered

This article is for informational purposes only and does not constitute legal or financial advice. Tax rules can change. Contact your local council or the National Revenue Authority for official guidance specific to your property.

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Independent public information platform for Sierra Leone.