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Property Tax in Singapore – What You Should Know

Buying property in Singapore comes with a series of costs and taxes you have to commit to.

For instance, each year on the 31st of January, property investors and homeowners in Singapore are required to pay their property tax.

Property tax in Singapore is a wealth tax, which you have to pay for holding property. It is payable in advance each year and is computed by applying the tax rate to the annual value of the property.

Note that if you fail to pay the tax on time, a 5% penalty is imposed. In the event that you fail to pay tax even after the penalty has been issues, the government will get the tax from your bank account.

How is property tax in Singapore calculated? 

Singapore property tax is determined by the Annual Value (AV) of each individual property.

You can calculate the payable property tax using this formula: Annual Value X Property Tax Rate = Property Tax Payable

The Annual Value of a property is generally derived based on the estimated annual rent that it can fetch if it were rented out. In determining the Annual Value of a property, IRAS will consider the rentals of similar properties in the vicinity, size and condition of the property, and other relevant factors.

The Annual Value of a property is determined in the same manner regardless of whether the property is let-out, owner-occupied or vacant.

The Annual Value of land is determined at 5% of the market price of the land. When a building is demolished, the Annual Value of the land is assessed by this method.

Property tax Singapore: rates at a glance 

Owner-Occupier Tax Rates (Residential Properties)

Owner-occupied residential properties may be condominiums, HDB flats or other residential properties where the owner lives in the property.

Owner-Occupier Tax Rates
Annual Value ($) Effective 1 Jan 2015 Property Tax Payable
First $8,000
Next $47,000
0%
4%
 $0
$1,880
First $55,000
Next $15,000

6%
$1,880
$   900
First $70,000
Next $15,000

8%
$2,780
$1,200
First $85,000
Next $15,000

10%
$3,980
$1,500
First $100,000
Next $15,000

12%
$5,480
$1,800
First $115,000
Next $15,000

14%
$7,280
$2,100
First $130,000
Above $130,000

16%
$9,380

Residential Tax Rates (Non-Owner Occupied Residential Properties)

Non-owner occupied residential properties may be condominiums, HDB flats or other residential properties. The owner does not live in the property and, therefore, owner-occupier tax rates do not apply.

The following tax rates apply to non-owner occupied properties except for those in the exclusion list .

Residential Tax Rates
Annual Value ($) Effective 1 Jan 2015 Property Tax Payable
First 30,000
Next $15,000
10%
12%
$3,000
$1,800
First $45,000
Next $15,000

14%
$4,800
$2,100
First $60,000
Next $15,000

16%
$6,900
$2,400
First $75,000
Next $15,000

18%
$9,300
$2,700
First $90,000
Above $90,000

20%
$12,000

Residential properties on the exclusion list will continue to be taxed at 10%.

Commercial and Industrial Properties (Non-Residential)

Non-residential properties such as commercial and industrial buildings and land are taxed at 10% of the Annual Value.

The owner-occupier tax rates do not apply to non-residential properties even if you have bought the properties for your own use or occupation.


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Also published on Medium.

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Andreea swears by her love for urban places, architecture, and Singapore, which is why she crafts content for Greyloft. When not immersed in adventures around the world, she loves living a bohemian life, where a good book has to always be paired with a pretty view.

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