Recently had a few customers ask us this question, especially foreign owners who own investment properties here in Singapore. So, here’s a summary of the recent changes to Property Tax in Singapore.
Timeline of Property Tax Changes
From 2020 to 2022
Rates unchanged: Owner‑occupied residential rates remained at the 2015–2022 structure:
0% on first S$8 k AV, then 4–16% tiers, capping at 16% above S$130 k AV (AV means Annual Value).
IRAS review of Annual Value (AV): In December 2021, IRAS revised HDB annual values upward from Jan 2022, leading to slight tax increases for most HDB flats – https://www.straitstimes.com/singapore/most-hdb-flat-owners-to-pay-more-in-property-taxes-next-year-iras
From 2023 to 2024
In the February 2022 Budget, a two-step rate hike was announced.
- Owner-occupied properties: Portions of AV above S$30 k taxed at 6–32% (raised from 4–16%)
- Non-owner-occupied properties: Rates increased to 12–36% by 2024 (up from 10–20%)
From 2025 onwards – AV band revisions effective 1 Jan 2025
- Owner-occupied bands adjusted—first tier raised from S$8 k to S$12 k, highest band increased from >S$100 k to >S$140 k
What Is Annual Value (AV)?
AV is the estimated annual rental income a property could fetch if it were rented out, excluding furnishings and maintenance costs, as determined by IRAS.
How AV Is Determined?
IRAS uses a mass appraisal method based on
Market Rental Data:
- IRAS studies recent rental transactions of comparable properties in the same area.
- For example, for a 4-room HDB flat in Ang Mo Kio, IRAS compares recent rentals of similar units in that estate.
Property Characteristics:
- Type (HDB, condo, landed)
- Size (floor area)
- Location and floor level (for flats)
- Age and condition of the property
- Amenities nearby (MRT, schools, malls)
Assumption of Unfurnished Rental:
- AV is calculated as if the property is unfurnished, regardless of how it’s actually rented.
Gross Annual Rent:
- This does not account for expenses like maintenance, property tax, or agent fees.
