Note: On 16 February 2024, as part of Budget 2024 statement, Deputy Prime Minister and Minister of Finance Lawrence Wong announced that the property tax Annual Value (AV) bands for owner-occupied residential properties will be raised, effective January 2025.
Property tax, also known as wealth tax, is 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 every year.
If you’re new to property taxes in Singapore, here is a guide to get you started on the terms and latest rates you need to know about.
Contents
- Property tax Singapore (overview)
- Property tax calculator
- One-off property tax rebate for owner-occupied residential properties in 2024
- Property tax for owner-occupied residential properties: 2023 vs 2024
- Property tax for non-owner-occupied residential properties: 2023 vs 2024
- How to check for outstanding IRAS property tax
- Obligation to update IRAS to avoid penalties
Property Tax Singapore (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 |
Property Tax Calculator Singapore
The IRAS property tax payable is calculated with this formula: 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.
How IRAS property tax is calculated may differ depending on:
- The property’s AV
- The IRAS property tax rates, which are based on whether you stay in your property
How to Calculate Annual Value (AV)
AV is calculated based on the rental value minus reasonable furniture rental and maintenance fees.
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 through the IRAS myTax Portal.
On a side note, if you are purchasing a property, you can check the current and past five years AV value of the property from IRAS at $2.50 a search.
Property Tax Singapore: Rate
AV rates fluctuate based on the market rental value of surrounding properties in the area. When the rental value is up, the AV rates will go up. Similarly, when the rental value heads south, so will the AV rates.
Property Tax Singapore: Exclusions
According to IRAS, you are exempt from paying property taxes in Singapore if you own these properties:
- 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 Singapore property tax rate to apply, the property must have received planning approval for the above use. No application to IRAS is required.
Property Tax Singapore: Rebates
If you are facing financial difficulties, you may approach IRAS for assistance. You may not receive a property tax rebate, but concessions may be made to your payment schedule.
Sometimes, the government will also announce nationwide property tax rebates. For example, in 2020, the government offered property tax rebates for certain non-residential properties to help stimulate the economy amid the height of the COVID-19 pandemic. Similarly, the government just announced an upcoming one-time property tax rebate for owner-occupied residential properties in 2024.
Budget 2024: Property Tax Annual Value (AV) Bands to be Revised
The Singapore Budget 2024 statement includes even more relief for owner-occupiers of residential properties concerned about high property tax prices.
Effective January 2025, the property tax Annual Value (AV) bands for owner-occupied residential properties will be raised. This means that most owner-occupiers of residential properties will soon pay lower taxes for their homes, as they will be taxed less on the lower threshold AV percentages of their properties.
From 19 February 2024 onwards, IRAS will also offer a 24-month interest-free instalment plan to eligible 65-year-olds and above who face cash flow issues when paying their property tax bills.
One-off Property Tax Rebate 2024 for Owner-occupier Residential Properties
| 1 and 2-room HDB flats | 100% |
| 3-room HDB flats | 70% |
| 4-room HDB flats | 50% |
| 5-room HDB flats | 40% |
| Executive HDB flats | 30% |
| Private property | 15%; capped at $1,000 |
According to MOF, this announcement was made “to cushion the impact of the [2024] PT increases, amidst concerns about cost-of-living.”
Commenting on the timeliness of this news, Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group said that “it will come as a relief, especially for HDB flat owners and owner-occupiers of more affordable private residential homes.”
On whether he believes the recent AV and rent increases will mean owner-occupiers will continue to bear the brunt of higher property taxes moving forward, he noted that these conditions are “likely spillover effects from the COVID-19 pandemic and are likely to normalise with more completions.”
Speaking of higher property tax rates, here are the upcoming tax rates you can expect to pay for (barring the one-time tax rebate if you qualify) from 2024 onwards:
Property Tax for Owner-occupied Residential Properties: 2023 Vs 2024
| Annual value | Property tax rate for owner-occupied residential properties in 2023 | Property tax rate for owner-occupied residential properties, effective 1 January 2024 |
| First $8,000 Next $22,000 |
0% 4% |
0% 4%* |
| First $30,000 Next $10,000 |
– 5% |
– 6% |
| First $40,000 Next $15,000 |
– 7% |
– 10% |
| First $55,000 Next $15,000 |
– 10% |
– 14% |
| First $70,000 Next $15,000 |
– 14% |
– 20% |
| First $85,000 Next $15,000 |
– 18% |
– 26% |
| First $100,000 Above $100,000 |
– 23% |
– 32% |
| First $115,000 Next $15,000 |
– 23% |
– 32% |
| First $130,000 Above $130,000 |
– 23% |
– 32% |
*For residential properties with AVs below $30,000, there is no change to the PT rate. This covers about 90% of owner-occupied residential properties (including all HDB flats).
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 above IRAS property tax rates apply to you.
Property Tax for Non-owner-occupied Residential Properties: 2023 Vs 2024
| Annual value | Property tax rate for non-owner-occupied residential properties in 2023 | Property tax rate for non-owner-occupied residential properties, effective 1 January 2024 |
| First $30,000 Next $15,000 |
11% 16% |
12% 20% |
| First $45,000 Next $15,000 |
– 21% |
– 28% |
| First $60,000 Next $15,000 |
– 27% |
– 36% |
| First $75,000 Next $15,000 |
– 27% |
– 36% |
| First $90,000 Above $90,000 |
– 27% |
– 36% |
On the other hand, if you are a non-owner-occupier of your home – for example, if you do not stay in your own HDB flat and want to calculate your HDB property tax next year – the above IRAS property tax rates apply to you.
Now that you know more about property tax in Singapore, here are some ways you can check how much property tax you need to pay and how you can make those payments:
How to Check for Outstanding IRAS Property Tax
1. 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
2. Via mytax.iras.gov.sg
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.
1. Property Tax Singapore: 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).
2. Property Tax Singapore: 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.
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