Property tax in Singapore

Your guide to property tax in Singapore

Property Tax in Singapore: What do You Need to Know?

Singapore is a leading hub for property investment in Southeast Asia. Property investment has become an important financial instrument for growing wealth through property capital appreciation and rental income. 

Whether just for purely investment purposes or immigrating to Singapore, one should pay attention to the property taxes that apply for both locals and foreigners as it could have both short and long term financial impacts on your portfolio. 

Singapore Property Tax Rates 

Singapore property tax rate is progressive and there are two differing tax rates for owner-occupied and non-owner-occupied residential properties.
All other properties are also taxed at 10% of their Annual Value. 

What is Annual Value? 

Annual value is the estimated gross annual rent of the property if it were to be rented out, excluding furniture, furnishings and maintenance fees.
It is based on estimated market rent of similar or comparable properties and not on the actual rental income received.
The way the Annual Value is determined is the same for all properties whether its owner or non-owner occupied. 

More information on Annual Value can be found on the IRAS page here

Calculating your property tax 

The property tax is calculated based on the Annual Property Tax which is determined by multiplying the annual value with the property tax rate. 

Owner-Occupier Tax Rates (Residential Properties)

Some examples of Owner-occupied residential properties can be condominiums, HDB flats or other residential properties where you would need to “physically live in the property”.

Owner-occupier Residential Tax Rates

Annual Value ($)

 Effective 1 Jan 2015 Property Tax Payable 
First $8,000

0%

 $0

 Next $47,000

 4%

 $1,880 

First $55,000  - $1,880 
Next $15,000

6%

$   900

 First $70,000  - $2,780 
Next $15,000 8% $1,200 
First $85,000  - $3,980 
 Next $15,000 10% $1,500 
First $100,000  - $5,480 
Next $15,000 12%  $1,800 
 First $115,000  - $7,280  
 Next $15,000  14%  $2,100 
 First $130,000  -

 

$9,380 

 Above $130,000  16%


 Non-owner-occupier Residential Tax Rates (Residential Properties)

Some examples of Non-owner-occupied residential properties can be condominiums, HDB flats or other residential properties.  
The following tax rates apply to non-owner-occupied properties except for those in the exclusion  list.

The following tax rates apply to non-owner-occupied properties.

 

Non-owner-occupier  Residential Tax Rates

Annual Value ($)

Effective 1 Jan 2015 Property Tax Payable
First $30,000

10%

$3000

Next $15,000

 12%

$1,800

First $45,000 - $4,800
Next $15,000

14%

$ 2100

First $60,000 - $6,900
Next $15,000 16% $2,400
First $75,000 - $9,300
Next $15,000 18% $2,700
First $90,000 -

 

$12,000

Above $90,000 20%


Source: IRAS 

Residential properties which are rented out are considered investment assets and hence are taxed at a higher rate than owner-occupied properties.
This tax structure makes the property tax system more progressive by ensuring that higher-value properties would be subject to higher tax rates.

The above tax rates apply to non-owner-occupied properties except for those in the exclusion  list specified by IRAS.

These kinds of properties will continue to be tax at 10%

Penalty on Late Payment of Property Tax

In Singapore, taxes are due on the 31st of January every year and 30 days from the bill date, to settle their taxes.

And in case you pay late, there will be a penalty of 5% on the unpaid taxes. However, you are given the right to appeal or ask for the waiver of the late fee waiver. And such may be considered when you pay your overdue tax in full, or if you have been good at paying for the past two years. 

If the amount hasn’t been settled even with the final notice of payment, the billing institution may request the amount to be deducted from your bank account. This is done through the GIRO payment system in Singapore or the General Interbank Recurring Order.

However, this is set by the owner or payer online. 

Tax Exemption

In Singapore, there are a few types of properties which are eligible for a tax exemption. These include,  properties which are being used as places of worship, charitable purposes, for education or schooling, and those which promote social development in the country. 

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