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:
- 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.
- 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:
- The Annual Value (AV) of the property, which is determined by IRAS.
- 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
-
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.
-
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."
-
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 Buyerβs 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 propertyβs 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.