Property Tax in Singapore
Property tax is a levy imposed on the ownership of properties in Singapore, regardless of whether it's rented out, owner-occupied, or vacant. The tax revenue helps fund public services like education, healthcare, and infrastructure.
Here's a quick overview of property tax in Singapore:
Calculating Property Tax:
Formula: Annual property tax = Annual Value (AV) x Property Tax Rate
Annual Value (AV): Estimated annual rental income of the property, determined by the Inland Revenue Authority of Singapore (IRAS) based on similar properties.
Property Tax Rates:
Residential: Progressive rates for owner-occupied and non-owner-occupied properties.
Non-residential: Flat rate of 10% of the AV.
Additional Information:
You can find property tax rates and sample calculations on the IRAS website.
There are exemptions and reliefs available for certain types of properties and owners.
You can pay your property tax online, through GIRO, or at designated collection points.
Owner-Occupied Tax Rates
In Singapore, owner-occupied residential properties enjoy lower tax rates compared to non-occupied ones. This is to encourage homeownership. The owner-occupied tax rates are progressive, meaning they increase as the Annual Value (AV) of the property increases.
Here's what you need to know:
Key Points:
Lower tax rates: Compared to non-occupied properties.
Progressive rates: Higher AV, higher tax rate.
HDB flats: Generally not affected by increased rates as their AV is usually below 30,000.
∗∗Current Rates (as of January 1,2024):∗∗
Owner-occupier tax rates (Effective 1 Jan 2024 to 31 Dec 2024)
Annual Value ($) | Tax rate effective from 1 Jan 2024 to 31 Dec 2024 | Property Tax Payable |
First $8,000 Next $22,000 | 0% 4% | $0 $880 |
First $30,000 Next $10,000 | - 6% | $880 $600 |
First $40,000 Next $15,000 | - 10% | $1,480 $1,500 |
First $55,000 Next $15,000 | - 14% | $2,980 $2,100 |
First $70,000 Next $15,000 | - 20% | $5,080 $3,000 |
First $85,000 Next $15,000 | - 26% | $8,080 $3,900 |
First $100,000 Above $100,000 | - 32% | $11,980 |
Additional Notes:
You can check the tax rate applied to your property on your latest property tax bill. It will mention "Owner-Occupier Tax Rates" if the concession applies.
Non-owner-occupier Residential Tax Rates
Unlike owner-occupied properties, non-owner-occupied residential properties in Singapore face higher and progressive property tax rates. This aims to encourage owner-occupancy and discourage properties being left vacant. Here's what you need to know:
Key Points:
Higher tax rates: Compared to owner-occupied properties.
Progressive rates: Higher AV, higher tax rate.
**No exemption for the first 8,000 of AV: ∗∗Unlike owner−occupied properties. ∗∗Current Rates (as of January 1, 2024):
Annual Value ($) | Effective 1 Jan 2024 | Property Tax Payable |
First 30,000 Next $15,000 | 12% 20% | $3,600 $3,000 |
First $45,000 Next $15,000 | - 28% | $6,600 $4,200 |
First $60,000 Above $60,000 | - 36% | $10,800 |
Exception:
Properties on the exclusion list (e.g., certain student hostels and welfare homes) are taxed at a flat rate of 10%.
Additional Notes:
You can find out if your property falls under the exclusion list by contacting the IRAS.
Similar to owner-occupied properties, the tax rate applied will be reflected on your property tax bill.
Remember, these are just the current rates as of February 28, 2024. They might be subject to change in future budgets, so it's always good practice to stay updated with the IRAS website for any adjustments.
Property Tax Rebate for 2024 in Singapore
Singapore's government provided a one-off property tax rebate for all owner-occupied residential properties in 2024. This rebate was implemented to help cushion the impact of property tax increases.
Key Points:
Eligibility: All owner-occupied residential properties were eligible for the rebate.
Amount: The rebate amount was tiered, with higher-value properties receiving a lower percentage rebate.
Application: The rebate was automatically applied to eligible properties and reflected in the 2024 Property Tax Bill issued in December 2023.
Additional Information:
2025 Property Tax: The government has announced that it will be raising the annual value (AV) bands from 2025, resulting in lower property tax bills for many homeowners.
Extended Instalment Plan: A 12-month interest-free Giro instalment plan is available for retirees facing cash flow issues when paying their property tax bills.
For more detailed information, please refer to the official IRAS website: https://www.iras.gov.sg/taxes/property-tax/property-owners/2024-property-tax-bill
Resources:
How Bestar can Help
Based on our general tax services and considering the complexities of property tax in Singapore, here are some areas where Bestar might assist with property tax:
1. Understanding Your Property Tax Bill:
Interpreting the Bill: Bestar's tax experts could help you understand the breakdown of your property tax bill, including the applied tax rate, Annual Value (AV), and any exemptions or reliefs you qualify for.
2. Reviewing Your Annual Value (AV):
Challenging the AV: If you believe the IRAS has assigned an inaccurate AV to your property, Bestar might assist you in reviewing the valuation and potentially filing a request for reassessment.
3. Exploring Tax Relief Options:
Identifying Eligibility: Bestar could help you explore various property tax reliefs available in Singapore, such as those for first-time homeowners, senior citizens, or properties with disabilities.
4. Keeping You Informed:
Staying Updated: Bestar might keep you informed about any changes in property tax regulations or new reliefs introduced by the government.
5. Liaising with IRAS:
Communication Assistance: In case of complex situations or disputes with the IRAS, Bestar could potentially assist you with communication and navigating the process.
Contact Bestar and inquire about our specific services regarding property tax in Singapore. We can provide personalized guidance based on your individual situation.
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2024 Property Tax Bill - Singapore
Property Tax Rebate for All Owner-Occupied Residential Properties in 2024
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Some home owners to pay lower property tax with raising of annual value bands from 2025
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