What Is Property Tax?
Property tax is a tax on properties in Singapore. All types of properties including HDB flats, factories, offices and vacant land are subject to tax.
If you or your business owns property, you must pay property tax.
How Much Property Tax Must I Pay?
1. Owner-Occupier Tax Rates (Residential Properties)
Owner-occupied residential properties may be condominiums, HDB flats or other residential properties where the owner lives in (“occupies”) the property. Owner-occupied residential properties enjoy owner-occupier tax rates.
| Annual Value ($) | Effective 1 Jan 2015 | Property Tax Payable ($) |
|---|---|---|
| First $8,000 Next $47,000 |
0% 4% |
0 1,880 |
| First $55,000 Next $15,000 |
– 6% |
1,880 900 |
| First $70,000 Next $15,000 |
– 8% |
2,780 1,200 |
| First $85,000 Next $15,000 |
– 10% |
3,980 1,500 |
| First $100,000 Next $15,000 |
– 12% |
5,480 1,800 |
| First $115,000 Next $15,000 |
– 14% |
7,280 2,100 |
| First $130,000 Above $130,000 |
– 16% |
9,380 |
2. Non-owner-Occupier Residential Tax Rates (Residential Properties)
Non-owner occupied residential properties may be condominiums, HDB flats or other residential properties. The owner does not live in (“occupy”) the property and, therefore, owner-occupier tax rates do not apply.
The following tax rates apply to non-owner occupied properties except for those in the exclusion list.
| Annual Value ($) | Effective 1 Jan 2015 | Property Tax Payable ($) |
|---|---|---|
| First $30,000 Next $15,000 |
10% 12% |
3,100 1,880 |
| First $45,000 Next $15,000 |
– 14% |
4,880 2,100 |
| First $60,000 Next $15,000 |
– 16% |
6,900 2,400 |
| First $75,000 Next $15,000 |
– 18% |
9,300 2,700 |
| First $90,000 Above $90,000 |
– 20% |
12,000 |
Residential properties on the exclusion list will continue to be taxed at 10%.
3. Commercial and Industrial Properties (Non-Residential)
Non-residential properties such as commercial and industrial buildings and land are taxed at 10% of the Annual Value. The owner-occupier tax rates do not apply to non-residential properties even if you have bought the properties for your own use / occupation.
How And When Do I Pay Property Tax?
You must pay property tax by 31 January every year.
IRAS will compute the annual tax you need to pay and send you the bill in December. Instructions on how to pay property tax are included in your bill.
Are There Any Rebates, Reliefs Or Refunds?
To help keep taxes affordable, encourage certain types of land development and meet business needs, the Government gives out rebates, reliefs and refunds to property owners.
For instance, if your property has been continuously vacant for at least 30 days or 1 calendar month because of repairs or the inability to find a tenant, you can claim for a refund of property tax for that period.
Are There Any Buildings Exempt From Property Tax?
A building is exempt from property tax if it is used exclusively:
Property tax is a tax on immovable properties, which include house, building and land. If you buy a property, you need to pay property tax for the property.
Payment Due Date of Property Tax
Property Tax for the year is payable in advance, by 31 January every year, i.e. property tax for 2009 must be paid by 31 January 2009.
Calculation of Property Tax
The tax amount is calculated based on a percentage (Tax rate) of the Annual Value (AV) of a property.
i.e. Tax amount = Tax Rate x AV
The current tax rate is 10% per year. If you purchase and live in a residential property, you need to apply for the concessionary rate of 4% per year.
How do I apply for the Concessionary Tax Rate?
If you own and live in a private residential property, you may apply for the 4% owner-occupier’s concessionary tax rate. You need to log in to myTax Portal with your SingPass to Apply for Owner-Occupier’s Concession. If you have already applied for owner-occupier’s concession via myTax Portal, you can check the status of your application via the same e-Service.
Who can apply?
Owner-Occupier`s Concession is available to an individual owner or a married couple who lives in his or their residential property. The concessionary tax rate is currently 4% per annum and can be granted for one residential property at any one time. A residential property owned by a company, association or a body of persons does not qualify for the concession even if its staff lives in its residential property.
Example:
If your house can fetch a rent of $1,000 per month,
AV is $1,000 x 12 = $12,000
Property Tax is 10% x $12,000 = $1,200 per year
If you are living in your house and qualify for the owner-occupier`s concession,
Property tax is 4% x $12,000 = $480 per year
If you have sold the residential property that you used to live in, you will not be eligible to apply concessions for past periods.
What happens if you own a HDB Flat and a Private Residential Property?
If you own a HDB flat and a private residential property, the concessionary tax rate will automatically apply to the HDB flat as HDB flat owners are required to live in their flats.
If you wholly rent out your flat and you live in your private residential property, the concessionary tax rate will be withdrawn from the date you moved out of your flat or the date of letting, whichever is earlier. Therefore, you can apply the concessionary tax rate to your private house.
If you have stopped renting out your flat and moved back to your flat, you can apply the concessionary tax rate to your flat.
If you have stopped living in your private residential property, the concessionary tax rate will be withdrawn from the date you moved out of your private residential property.
