What Are Rates and Levies in Zimbabwe and How Are They Charged? Complete 2025 Guide

Rates and levies are recurring charges imposed by local authorities on property owners in Zimbabwe. They fund essential services such as water, sanitation, roads, and local infrastructure. Understanding how these charges are calculated is crucial for budgeting and property investment.

2025 Snapshot:

• Average residential property rates in Harare: US $100–$300 per year for small to medium properties
  
• Bulawayo residential rates: US $80–$250 per year
  
• Rates and levies contribute significantly to council budgets, funding public services and infrastructure development
  

What Are Rates?

Definition: Rates are local taxes levied on property owners based on the value of their property.

Key Points:

• Charged annually by local councils
  
• Determined by property valuation, type, and location
  
• Fund municipal services including roads, street lighting, refuse collection, and public facilities
  

Example:

• A house valued at US $150,000 in Mount Pleasant may attract annual rates of US $200–$250 depending on the council.
  

What Are Levies?

Definition: Levies are fees charged in addition to rates, usually for services specific to a suburb, estate, or residential development.

Common Types of Levies:

1. Security Levies: Fund private or estate security services
   
2. Estate Maintenance Levies: Cover gardens, communal roads, or recreational facilities
   
3. Water Levies: Fund water provision where councils charge separately
   
4. Sanitation Levies: Cover sewage treatment and refuse removal
   

Example:

• A gated estate in Greendale may charge US $50–$150 per month for levies covering security, gardens, and roads.

How Rates and Levies Are Calculated

Rates Calculation:

1. Property Valuation: The council determines the rateable value of the property.
   
2. Millage Rate: A percentage of the property value set by the council.
   
3. Formula:
   Annual Rates = Rateable Value×Millage Rate

Example: A property valued at US $120,000 with a millage rate of 0.2% will pay US $240 per year.

Levies Calculation:

• Set by the estate or management body
  
• Usually flat fees per household or proportional to property size
  
• Paid monthly, quarterly, or annually depending on the estate rules
  

Payment and Enforcement

Payment Schedules:

• Councils may require annual or quarterly payments
  
• Levies often paid monthly
  

Consequences of Non-Payment:

• Penalties and interest accumulation
  
• Restriction on property transactions
  
• Potential legal action for arrears
  

2025 Insight:

• Many Harare suburbs report over 80% compliance with rates and levies, reflecting property owner awareness of legal obligations.
  

Exemptions and Relief

Certain properties may qualify for partial or full exemptions, including:

• Properties owned by charitable organizations
  
• Diplomatic properties
  
• Newly constructed properties within a grace period (varies by council)
  

Some councils offer payment plans or discounts for early payment.

Practical Example

Example 1: Residential Property in Highlands, Harare

• Property value: US $150,000
  
• Annual council rates: US $220
  
• Estate levies for security and garden maintenance: US $80/month (~US $960/year)
  
• Total annual cost for rates and levies: US $1,180
  

Example 2: Cluster Home in Borrowdale Estate

• Property value: US $120,000
  
• Annual council rates: US $180
  
• Monthly estate levies (security, roads, communal gardens): US $100/month (~US $1,200/year)
  
• Total annual cost: US $1,380
  

Tips for Property Owners

1. Budget for Rates and Levies

• Include these costs when purchasing or renting property
  

2. Verify Valuation

• Ensure council valuations are accurate; appeal if necessary
  

3. Understand Estate Rules

• Check what services levies cover and their payment schedule
  

4. Maintain Compliance

• Avoid penalties, interest, or legal disputes by paying on time
  

5. Plan for Increases

• Councils may revise rates annually based on inflation and service needs
  

Summary

• Rates and levies in Zimbabwe fund essential municipal and estate services.
  
• Rates: Charged based on property value; fund public infrastructure and services.
  
• Levies: Charged by estates or management bodies; fund security, maintenance, and communal amenities.
  
• 2025 Insight: Annual payments can range from US $100 to over US $1,500 depending on property type, location, and estate.

Key Takeaway: Understanding rates and levies is essential for property budgeting, investment planning, and compliance in Zimbabwe.