In Singapore, property taxes and duties need to be paid not only when purchasing residential property purchases, but also annually on all the properties you own.
This article will focus on the latter type of tax on property ownership, and cover the amount and type of property taxes homeowners need to be aware of and pay.
Read Also: Are Grants And Payouts You Receive From The Government Taxable In Singapore?
Singapore Property Tax Is Paid By The Property Owner(s)
In Singapore, property tax is levied on the owner of the property – whether the unit is owner-occupied, rented out, or vacant. The exception would be a trustee or appointed agent who is managing a property and collecting rent on an owner’s behalf.
Even though a tenant might lose out on some government schemes as a result of living in a property with high Annual Value (AV), tenants do not need to pay property taxes.
In the event there are multiple owners of the property, the Inland Revenue Authority of Singapore (IRAS) considers the allocation of the share of property tax a private matter. In other words, IRAS does not care who pays the tax, so long as the tax is paid. This also means IRAS is legally allowed to go after any/all of the property owners for unpaid dues.
Though for all correspondence, including payment reminders or refunds, IRAS would contact the owner whose name appears first in the property deed.
How Is The Property Tax Rate In Singapore Calculated?
Just as there are different tax brackets for income tax based on how much you earn, chargeable property tax in Singapore is also tiered based on the Annual Value (AV) of your property. Furthermore, there are different rates and brackets, depending on whether the property is owner-occupied or not.
Note that as announced during Budget 2024, there will be a revision in the annual values (AV) of most residential properties, which include private property and HDB flats, reflecting the rise in market rents.
The Inland Revenue Authority of Singapore’s (IRAS) does an annual review of properties to compute the property tax payable.
In other words, three factors determine the property tax payable.
Firstly, the annual value of the property.
Secondly, whether it’s owner-occupied or non-owner-occupied.
Lastly, the property tax rate
Owner-Occupier Property Tax Rate
Here are the tax rates for owner-occupier properties for 2025.
Source: IRAS
For example, for an owner-occupied property with an annual value of $46,000, the first $12,000 is taxed at 0%, while the next $28,000 is taxed at 4%, which works out to $1,120. The next $6,000 is taxed at 6%, which is $360. In total, the property tax payable in 2023 is $1,480
Non-Owner-Occupier Property Tax Rate
There is no change to the property tax rates for non-owner-occupied properties.
For a non-owner-occupied property with an annual value of $46,000, the first $30,000 is taxed at 12%, which works out to be $3,600. The next $15,000 is taxed at 20%, which works out to be $3,000. The remaining $1,000 will be taxed at 28%, which works out to $280. In total, the property tax payable is $6,880 in 2024.
You can also use IRAS’ property tax calculator to find out how much property tax you can expect to pay.
The difference in property tax rate between an owner-occupier property and a non-owner-occupier property can be significant. In our example on a property with an annual value of $46,000, the property tax payable for an owner-occupier property is $1,480, but this increases to $6,880 for a non-owner-occupier property in 2024.
Do note that for non-residential properties such as commercial and industrial properties, the property tax rate is a flat 10% of the annual value of the property.
To cushion the impact of rising cost of living in Singapore, the government is providing a one-off property tax rebate of 20% for all owner-occupied HDB flats, and 15% for all owner-occupied private properties (capped at $1,000) in 2025.
Source: MOF
For example, if the property tax payable for an owner-occupied 3-room HDB flat in 2025 is $100, the homeowner will only need to pay $80 after discounting the 20% property tax rebate.
If a private property owner has to pay a property tax of $8,620 in 2025, the homeowner will have to pay $7,620. This is because 15% of their property tax adds up to more than the $1,000 cap.
What Happens If I Own More Than One Property?
The owner-occupier tax rates are only granted to one property owned and occupied by you. For subsequent properties, you will be taxed at the non-owner-occupier residential tax rates, even if you are occupying it as your second home or it’s currently vacant.
If you sublet some of your rooms but are still staying in your property, you will enjoy the owner-occupier tax rates.
It’s worth noting that if you buy a resale HDB flat and allow the previous owner to extend his stay for 3 months after the transfer of the flat, you have to pay property tax at the higher, non-owner-occupier residential tax rate of your property’s annual value for the 3 months as you are not staying in the flat.
Hence, you will not enjoy the concessionary owner-occupier tax rates for the extension period. This is stated in the HDB Terms and Conditions and the Letter of Acceptance and Indemnity during the temporary extension of stay application.
When And How You Will Receive Your Property Tax Bill
You can check on your taxes due, past statements, and details of your entire property portfolio (including each property’s AV) using IRAS’ myTax Portal.
For 2024, you will receive notice of your property tax bill by 31 December 2024, and you will need to make payment (or have an installment plan set up) by 31 January 2025, after which a 5% late payment penalty will be levied.
The government also provided a one-off property tax rebate of up to 100% for all owner-occupied residential properties in 2024, as per the rates below:
Source: IRAS
Similarly, in 2025, you will receive notice of your property tax bill by 31 December 2025. As stated above, you will enjoy a 20% property tax rebate in 2025 for owner-occupied HDB flats and 15% (capped at $1,000) for private properties.
Sample Property Tax Notice (Source: IRAS)
In the event your tax bill continues to be unpaid, IRAS is empowered to take action to recover owed taxes, including appointing agents like your bank(s), employer, tenant, or lawyer to pay the owed monies, and/or seizing your property and putting it up for public auction to recover unpaid dues.
If you have genuine financial difficulties, you can contact IRAS to work out a longer payment plan, as well as approach the relevant agencies for specific assistance.
Modes Of Payment For Your Property Tax To IRAS
According to IRAS, the preferred (and most common) payment method for property tax is GIRO (General Interbank Recurring Order). Using GIRO, you can opt for up to 12 interest-free monthly payments or a yearly deduction. All GIRO deductions are made on the 5th of each month, and if unsuccessful, a second attempt will be made on the 21st of the same month.
After two consecutive months of unsuccessful GIRO directions, the GIRO arrangement will be automatically cancelled, and you will then need to re-activate your GIRO arrangement if you wish to continue using GIRO for your property tax payments.
You can use your local bank’s internet banking service to set up a new GIRO arrangement. Alternatively, DBS/POSB and OCBC customers can from within IRAS’ myTax Portal, while DBS/POSB customers can also use AXS stations. All GIRO arrangements will be ready for use within 3 working days.
If you don’t want to/cannot use GIRO for some reason, there are also a wealth of other electronic payment modes, including PayNow, ATMs, AXS stations, SAM kiosks, selected credit cards, i-Banking transfers, and NETS machines over the counter at SingPost outlets. Those overseas can pay using telegraphic transfers if the above-mentioned options are not feasible.
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