When you own a property in Singapore, you are automatically required to pay property taxes. These taxes differ from your income tax, rental tax and stamp duty. Income taxes are taxes on your income, rental taxes are only applicable on selected property owners, and stamp duty are charges imposed when you purchase a property.
Property tax, also known as wealth tax, are taxes levied on you for owning a property. Most property owners are however unaware of how these taxes are calculated as the property tax levied changes on a yearly basis. In 2022, most HDB flat owners will have to pay more in property taxes.
Here’s a guide to IRAS property tax rates, calculations, and more.
IRAS Property Tax in Singapore: An Overview
|
What is property tax? |
They are taxes levied on you for owning a property. |
|
What is the property tax rate? |
The Property Tax Rate is calculated based on progressive tax rates, and whether the unit is owner-occupied or non-owner occupied. |
|
How to calculate property tax? |
Annual Value (AV) x Property Tax Rate = Property Tax Payable |
|
What are the late payment charges for property tax? |
There is a 5% penalty charged for late payments. |
As mentioned above, property taxes are chargeable to all property owners as long as they own a property.
How IRAS property tax is calculated may differ depending on:
- The property’s Annual Value (AV)
- The IRAS property tax rates, based on the occupancy status of your property.
How to Calculate Property Tax in Singapore
The IRAS property tax payable is calculated with this formula:
Annual Value (AV) x Property Tax Rate = Property Tax Payable
For example, if the AV of your property is $30,000 and your tax rate is 10%, you would pay $30,000 x 10% = $3,000.
You may also consider using the IRAS property tax calculator.
Why Is HDB Property Tax Going Up in 2022?
You may have read in the news that HDB property tax is about to rise in 2022. Why?
To clarify, there is no change to the IRAS property tax rate regardless of whether you’re paying owner-occupied property tax or non-owner-occupied taxes (e.g. if you rent out an apartment).
What will go up, though, is the annual value (or AV) of most HDB flats. Your property’s AV is determined by the Inland Revenue Authority of Singapore (IRAS) on a yearly basis.
The Annual Value rates fluctuate based on the market rental value of surrounding properties in the area. Hence when the rental value is up the AV rates will go up, and similarly when the rental value heads south, so will the AV rates.
Since HDB rental prices have gone up, IRAS will revise upwards the annual values of HDB flats by 4 per cent to 6 per cent in 2022.
Regardless of whether you rent out your HDB flat or not, owner-occupiers of 3-room HDB flats and larger will need to pay an estimated $8 to $26 more for their HDB property tax in 2022.
However, with the revision, 1- and 2-room flat owner-occupiers will not be required to pay HDB property tax, along with about a third of 3-room flat owner-occupiers.
For more information on HDB property tax changes in 2022, read HDB owners to face higher property tax next year.
How Is the Annual Value (AV) Calculated?
The Annual Value is calculated based on the rental value minus reasonable furniture rental and maintenance fees. Let’s take Mr. Chong’s rental unit for example:
Monthly rental income: $2,500
Monthly furniture rental: $900
Monthly maintenance: $500
$2,500 – ($900 + $500) = $1,100
So the AV for his unit will be $1,100 x 12 months = $13,200
To make it easier for property tenants, the IRAS will send them a notification every time there is a change to their AV rates. However, property owners can also check the current AV rates at any time from the Inland Revenue Authority of Singapore (IRAS) at any time by logging into their website.
On a side note, if you are purchasing a property, you can check the current and past 5 years AV value of the property from IRAS at $2.50 a search.
Related article: Property Annual Value: What Is It And How Do You Check Yours?
IRAS Property Tax Rate: What Is It?
The IRAS Property Tax Rate is calculated based on progressive tax rates, and whether the unit is owner-occupied or non-owner occupied. The progressive tax rates indicate that the higher your property value is, the higher your tax rate will be.
Owner-occupied Property Tax Rates in Singapore
If you are an owner-occupier of your home — for example, if you stay in your own HDB flat and want to calculate your HDB property tax next year — the below IRAS property tax rates apply to you.
|
Annual Value |
Rates (effective 1 Jan 2015) |
Property Tax Payable |
|
First $8,000 |
0% |
$0 |
|
Next $47,000 |
4% |
$1,880 |
|
First $55,000 |
– |
$1,880 |
|
Next $15,000 |
6% |
$900 |
|
First $70,000 |
– |
$2,780 |
|
Next $15,000 |
8% |
$1,200 |
|
First $85,000 |
– |
$3,980 |
|
Next $15,000 |
10% |
$1,500 |
|
First $100,000 |
– |
$5,480 |
|
Next $15,000 |
12% |
$1,800 |
|
First $115,000 |
– |
$7,280 |
|
Next $15,000 |
14% |
$2,100 |
|
Above $130,000 |
16% |
$9,380 |
Source: IRAS
As you can see, your property’s annual value (and the occupancy status) determine your property tax rate. For example, if your HDB flat has an AV of $36,000, you will be charged 0% on the first $8,000, and 4% on the following $28,000. In total, your HDB property tax adds up to $1,120.
Non-owner-occupied Property Tax Rates in Singapore
If you don’t live in the said property and are renting the entire place out, here are the rates for you:
|
Annual Value |
Rates (effective 1 Jan 2015) |
Property Tax Payable |
|
First $30,000 |
10% |
$3,000 |
|
Next $15,000 |
12% |
$1,800 |
|
First $45,000 |
– |
$4,800 |
|
Next $15,000 |
14% |
$2,100 |
|
First $60,000 |
– |
$6,900 |
|
Next $15,000 |
16% |
$2,400 |
|
First $75,000 |
– |
$9,300 |
|
Next $15,000 |
18% |
$2,700 |
|
Above $90,000 |
20% |
$12,000 |
Source: IRAS
Using the same example of $36,000 AV, for non-owner-occupier properties, you will be charged 10% on the first $30,000, and 12% on the next $6,000. That makes your IRAS property tax $3,720 in total.
IRAS Property Tax Calculator Singapore
If all these numbers are confusing you, an easier way to get your property tax rate calculations would be to use the IRAS progressive tax rate calculator.
How to Check for Outstanding IRAS Property Tax
Via Check Property Tax Balance page:
For this, you will need:
- Your property address
- Your tax reference number (i.e. NRIC/FIN number) OR your property tax reference number
Via mytax.iras.gov.sg Site:
This method allows you to check your past transactions. You will need to log in with your Singpass details to do so.
How to Pay Property Tax in Singapore (Online or Offline)
IRAS has a compilation of ways to pay property tax in Singapore. They include both ways to pay property tax online as well as in person.
How to Pay Property Tax Online:
Pay property tax online at your convenience via GIRO (one-time or 12 instalments), PayNow QR, internet banking, via the AXS app, by internet banking fund transfer, or Telegraphic Transfer (if you do not have a Singapore-based bank account)
Other Ways to Pay Property Tax:
If you don’t want to pay property tax online, you can opt to pay at an AXS machine or SingPost branch.
Obligation to Update IRAS to Avoid Penalties
It is absolutely crucial to update the authorities with any change of information pertaining to your property. Misinformation or failure to inform the relevant authorities will result in a hefty fine.
Here are some of the events that require updating:
- Sale or Transfer of Property Ownership
- Completion of Demolition of Property
- Rental of Property
- Increase in Rental Charge
- Premium Charge for Letting
- Cessation of Owner-Occupation
You may read more about the details here.
Can We Get Property Tax Rebates?
In 2020, the Singapore government offered property tax rebates to help stimulate the economy during the COVID-19 crisis. However, those property tax rebates are not for residential properties.
Likewise, in 2022, there is no property tax rebate for residential properties. This means you must continue to pay IRAS property tax for your HDB flat, condo, and landed homes.
As seen above, however, as long as you are an occupant in the property, you will enjoy lower owner-occupier property tax rates, which is considered an ongoing property tax relief measure. In addition, if you are an owner-occupier of a 1- or 2-room HDB flat, you do not need to pay IRAS property tax in 2022.
If you are facing financial difficulties, you may approach IRAS for assistance. You may not receive a property tax rebate, but concessions might be made to your payment schedule.
Exclusion List to Progressive Property Tax Rates
There are selected properties that are exceptions to the property tax rates and have flat property tax rates of only 10%. They will however need to have received planning approval from the Government, but no application to IRAS is necessary.
According to IRAS, the list of exceptions is as below:
- Accommodation facilities within any sports and recreational club
- Chalet
- Child care centre, student care centre, or kindergarten
- Welfare home
- Hospital, hospice, or place for rehabilitation, convalescence, nursing care or similar purposes
- Hotel, backpackers’ hostel, boarding house or guesthouse
- Serviced apartment
- Staff quarters that are part of any property exempted from tax under s6(6) of the Property Tax Act
- Student’s boarding house or hostel
- Workers’ dormitory
For the existing 10% tax rate to apply, the property must have received planning approval for the above use. No application to IRAS is required.
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