What are the property tax implications for homeowners in Singapore?

Property tax in Singapore is an annual tax levied by the Inland Revenue Authority of Singapore (IRAS) on all property owners. It is calculated based on the Annual Value (AV) of the property - the estimated gross annual rental income the property could earn if rented out - rather than its purchase price or market value.

For owner-occupied residential properties, a concessionary progressive rate applies. The first S$12,000 of AV is taxed at 0%, the next S$28,000 at 4%, with rates rising progressively through subsequent bands and reaching 32% on AV above S$140,000. To qualify, the property must be your primary place of residence, and owner-occupier rates can only be claimed for one property at a time.

For non-owner-occupied residential properties, including investment and rental properties, higher progressive rates apply. The first S$30,000 of AV is taxed at 12%, rising progressively to 36% on AV above S$60,000. The lower threshold at which the top rate kicks in - compared to owner-occupied properties - reflects the policy intent to favour owner-occupiers over investors.

These rates have been in effect since 1 January 2024 for non-owner-occupied properties and 1 January 2025 for owner-occupied properties. IRAS reviews AV annually based on comparable rental market data. If you believe your AV is inaccurate, you can file an objection with IRAS.

Property tax bills are issued in December for the following year and are payable by 31 January. Monthly GIRO instalments are available to spread payments across the year.

While property tax is generally modest for owner-occupied flats and apartments, it can be more significant for higher-value properties such as landed homes in prime districts and should be factored into your ongoing budget. Cashew ensures these recurring costs are included in financial planning discussions with every buyer.