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Property Tax

A tax on property ownership in Singapore, calculated based on the annual value of the property.

Sections

Who Needs to Pay Property Tax?

  • All property owners in Singapore, including Singapore citizens, permanent residents, and foreigners, are required to pay property tax.
  • Property tax is payable regardless of whether the property is owner-occupied, rented out, or vacant.

Tax Rates

Property tax rates differ based on the type of property and its usage:

  1. Residential Properties:
    • Owner-Occupied Residential Properties: Lower tax rates apply to properties used as the owner's primary residence.
    • Non-Owner-Occupied Residential Properties: Higher tax rates apply to properties rented out or left vacant.
  2. Non-Residential Properties:
    • Commercial and industrial properties are taxed at a flat rate of 10% of the AV.

Residential Property Tax Rates (Effective 1 January 2024)

Owner-Occupied Residential Properties

| Annual Value (AV) | Tax Rate (%) | |--------------------|--------------| | First $8,000 | 0% | | Next $22,000 | 4% | | Next $30,000 | 5% | | Next $15,000 | 7% | | Next $15,000 | 10% | | Above $90,000 | 12% |

Non-Owner-Occupied Residential Properties

| Annual Value (AV) | Tax Rate (%) | |--------------------|--------------| | First $30,000 | 12% | | Next $15,000 | 16% | | Next $15,000 | 20% | | Next $15,000 | 24% | | Above $90,000 | 32% |


3. General Costs

The cost of property tax depends on:

  1. The Annual Value (AV) of the property, which is determined by IRAS.
  2. The tax rate applicable to the property (owner-occupied or non-owner-occupied).

Example Calculation:

  • Owner-Occupied Property:

    • AV: $40,000
    • Tax Payable:
      • First $8,000: $0 (0%)
      • Next $22,000: $880 (4%)
      • Remaining $10,000: $500 (5%)
      • Total Tax Payable: $1,380
  • Non-Owner-Occupied Property:

    • AV: $40,000
    • Tax Payable:
      • First $30,000: $3,600 (12%)
      • Remaining $10,000: $1,600 (16%)
      • Total Tax Payable: $5,200

4. Standard Procedures for Payment

How to Pay Property Tax

  1. Receive the Property Tax Bill:

    • IRAS issues property tax bills in December each year for the following year.
    • The tax is payable by 31 January of the year.
  2. Payment Methods:

    • GIRO: Monthly or annual deductions from your bank account. This is the most convenient method.
    • Online Payment: Via the IRAS website using eNETS or credit/debit cards.
    • AXS Stations: Payment can be made at AXS kiosks located across Singapore.
    • Internet Banking: Through participating banks.
    • Cheque: Payable to "Commissioner of Inland Revenue."
  3. Late Payment Penalties:

    • A 5% penalty is imposed for late payment.
    • If the tax remains unpaid, IRAS may take legal action, such as issuing a Warrant of Seizure and Sale.

5. Exemptions and Reliefs

Exemptions

Certain properties are exempt from property tax, including:

  • Government-owned properties used for public purposes.
  • Religious properties used for worship or religious purposes.
  • Charitable properties used for charitable purposes.

Owner-Occupied Concession

  • Lower tax rates apply to properties that are owner-occupied.
  • To qualify, the property must be used as the owner's primary residence.
  • Owners must apply for this concession via the IRAS website.

Vacant Properties

  • Non-owner-occupied tax rates apply to vacant properties.
  • There is no exemption or reduction for properties that are vacant.

6. Country-Specific Considerations

Foreign Property Owners

  • Foreigners are subject to the same property tax rates as Singapore citizens and permanent residents.
  • However, foreigners purchasing residential property in Singapore are subject to Additional Buyer’s Stamp Duty (ABSD), which is separate from property tax.

Annual Value (AV) Review

  • The AV of properties is reviewed annually by IRAS to reflect changes in the rental market.
  • Property owners can check their property’s AV via the IRAS website.

Property Tax Rebates

  • The Singapore government occasionally provides property tax rebates as part of national budgets or economic relief measures. For example, rebates were given during the COVID-19 pandemic for certain property types.

7. Key Resources

  • IRAS Property Tax Portal: https://www.iras.gov.sg
  • Property Tax Calculator: Available on the IRAS website to estimate your tax liability.
  • Contact IRAS: For inquiries, you can contact IRAS at 1800-356-8300 (local) or +65-6356-8300 (overseas).

8. Summary

  • Property tax in Singapore is based on the Annual Value (AV) of the property and its usage (owner-occupied or non-owner-occupied).
  • Tax rates for residential properties are progressive, while non-residential properties are taxed at a flat rate of 10%.
  • Payment is due annually by 31 January, with various payment methods available.
  • Exemptions and reliefs apply to specific property types, such as religious or charitable properties, and owner-occupied properties enjoy lower tax rates.

By understanding these regulations and processes, property owners in Singapore can ensure compliance and avoid penalties.