{"id":1549,"date":"2025-06-13T15:18:10","date_gmt":"2025-06-13T07:18:10","guid":{"rendered":"https:\/\/isr.sg\/singapore-property-blog\/?p=1549"},"modified":"2025-06-13T15:19:15","modified_gmt":"2025-06-13T07:19:15","slug":"why-your-property-tax-so-high","status":"publish","type":"post","link":"https:\/\/isr.sg\/singapore-property-blog\/2025\/06\/13\/why-your-property-tax-so-high\/","title":{"rendered":"Why Your Property Tax So High?"},"content":{"rendered":"\n

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.<\/p>\n\n\n\n

\"\"
A quick comparison of Property Tax updates over the years<\/figcaption><\/figure>\n\n\n\n

Timeline of Property Tax Changes<\/strong><\/h2>\n\n\n\n
\"\"
Key Changes in Property Tax for Owner-Occupied Residential Properties in Singapore<\/figcaption><\/figure>\n\n\n\n

From 2020 to 2022<\/strong><\/h3>\n\n\n\n

Rates unchanged: Owner\u2011occupied residential rates remained at the 2015\u20132022 structure: <\/p>\n\n\n\n

0% on first S$8\u202fk AV, then 4\u201316% tiers, capping at 16% above S$130\u202fk AV (AV means Annual Value).<\/p>\n\n\n\n

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<\/a><\/p>\n\n\n\n

From 2023 to 2024<\/strong><\/h3>\n\n\n\n

In the February 2022 Budget, a two-step rate hike was announced.<\/p>\n\n\n\n

  • Owner-occupied properties: <\/strong>Portions of AV above S$30\u202fk taxed at 6\u201332% (raised from 4\u201316%)<\/li>
  • Non-owner-occupied properties<\/strong>: Rates increased to 12\u201336% by 2024 (up from 10\u201320%)<\/li><\/ul>\n\n\n\n

    From 2025 onwards<\/strong> – AV band revisions effective 1 Jan\u202f2025<\/em><\/h3>\n\n\n\n
    • Owner-occupied bands adjusted\u2014first tier raised from S$8\u202fk to S$12\u202fk, highest band increased from >S$100\u202fk to >S$140\u202fk<\/li><\/ul>\n\n\n\n
      \"\"
      Key Changes in Property Tax for NON-Owner-Occupied Residential Properties in Singapore<\/figcaption><\/figure>\n\n\n\n

      What Is Annual Value (AV)?<\/h2>\n\n\n\n

      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.<\/p>\n\n\n\n

      How AV Is Determined?<\/h2>\n\n\n\n

      IRAS uses a mass appraisal method based on<\/p>\n\n\n\n

      Market Rental Data:<\/strong><\/p>\n\n\n\n

      • IRAS studies recent rental transactions of comparable properties in the same area.<\/li>
      • For example, for a 4-room HDB flat in Ang Mo Kio, IRAS compares recent rentals of similar units in that estate.<\/li><\/ul>\n\n\n\n

        Property Characteristics:<\/strong><\/p>\n\n\n\n

        • Type (HDB, condo, landed)<\/li>
        • Size (floor area)<\/li>
        • Location and floor level (for flats)<\/li>
        • Age and condition of the property<\/li>
        • Amenities nearby (MRT, schools, malls)<\/li><\/ul>\n\n\n\n

          Assumption of Unfurnished Rental:<\/strong><\/p>\n\n\n\n

          • AV is calculated as if the property is unfurnished, regardless of how it’s actually rented.<\/li><\/ul>\n\n\n\n

            Gross Annual Rent:<\/strong><\/p>\n\n\n\n

            • This does not account for expenses like maintenance, property tax, or agent fees.<\/li><\/ul>\n\n\n\n
              \"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

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