- What is property tax?
Property tax is imposed on owners of immovable properties and is payable in advance each year. The tax payable in respect of a property is calculated based on a percentage of the annual value (AV) of the property.
- What does annual value mean?
Annual value (AV) is the estimated annual rent a property can fetch if it was rented out. In determining the AV of a property, IRAS will consider the rents of similar or comparable properties in the vicinity, size and condition of the property, and other relevant factors.
- How is annual value determined?
Buildings – The AV is the estimated annual rent of the property if it was rented out, excluding the furniture, furnishings and maintenance fees. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. If the property is rented out, the AV could be higher or lower than the actual rents as the AV reflects the market rent at the time of review.
Land and development site – The AV is determined at 5% of the estimated freehold market value.
Specialised properties – Certain categories of properties (such as hotels, ports, refineries, etc.) may be assessed using the statutory formula or prescribed methods of assessment.
For some properties (such as petrochemical and power plants, etc.) which are rarely let or where there is no rental evidence, valuation methods using costs and receipts may be used to estimate their market rents.
- What is the property tax rate in Singapore?
Following the introduction of progressive tax rates for all residential properties in Budget 2013, the following rates apply:
Property Tax Rates for Owner-Occupied Residential Properties
Annual value ($) | From 1 January 2014 | From 1 January 2015 | |||
Rate (%) | Gross tax payable ($) | Rate (%) | Gross tax payable ($) | ||
On the first | 8,000 | 0 | 0 | 0 | 0 |
On the next | 47,000 | 4 | 1,880 | 4 | 1,880 |
On the first | 55,000 | 1,880 | 1,880 | ||
On the next | 5,000 | 5 | 250 | 6 | 300 |
On the first | 60,000 | 2,130 | 2,180 | ||
On the next | 10,000 | 6 | 600 | 6 | 600 |
On the first | 70,000 | 2,730 | 2,780 | ||
On the next | 15,000 | 7 | 1,050 | 8 | 1,200 |
On the first | 85,000 | 3,780 | 3,980 | ||
On the next | 15,000 | 9 | 1,350 | 10 | 1,500 |
On the first | 100,000 | 5,130 | 5,480 | ||
On the next | 15,000 | 11 | 1,650 | 12 | 1,800 |
On the first | 115,000 | 6,780 | 7,280 | ||
On the next | 15,000 | 13 | 1,950 | 14 | 2,100 |
On the first | 130,000 | 8,730 | 9,380 | ||
Above | 130,000 | 15 | 16 |
Property Tax Rates for Non-Owner-Occupied Residential Properties
Annual value ($) | From 1 January 2014 | From 1 January 2015 | |||
Rate (%) | Gross tax payable ($) | Rate (%) | Gross tax payable ($) | ||
On the first | 30,000 | 10 | 3,000 | 10 | 3,000 |
On the next | 15,000 | 11 | 1,650 | 12 | 1,800 |
On the first | 45,000 | 4,650 | 4,800 | ||
On the next | 15,000 | 13 | 1,950 | 14 | 2,100 |
On the first | 60,000 | 6,600 | 6,900 | ||
On the next | 15,000 | 15 | 2,250 | 16 | 2,400 |
On the first | 75,000 | 8,850 | 9,300 | ||
On the next | 15,000 | 17 | 2,550 | 18 | 2,700 |
On the first | 90,000 | 11,400 | 12,000 | ||
Above | 90,000 | 19 | 20 |
The property tax rate for industrial and commercial properties remains unchanged is 10%.
Prior to this, the property tax rate for let-out residential properties was 10%, while owner-occupied residential properties are taxed under the following concessionary progressive tax structure:
Property Tax Rates for Owner-Occupied Residential Properties from 1 January 2011
Annual value ($) | Rate (%) | Gross tax payable ($) | |
On the first | 6,000 | 0 | 0 |
On the next | 59,000 | 4 | 2,360 |
On the first | 65,000 | 2,360 | |
Above | 65,000 | 6 |
- When is property tax payable?
Property tax is payable in advance by 31 January every year. Ad-hoc property tax bills due to new assessments or re-assessments are payable within 30 days from the date of the bill.
- What are the property tax exemptions available?
Buildings which house public schools and places for public religious worship, properties used for charitable purposes and to promote social development of Singapore, and land granted “Approved Building Project” status are all exempt from property tax.
In addition, property tax exemption may be granted for the land during the construction and development phase of the above buildings (which can qualify for property tax exemption when completed).
- What are the circumstances that can trigger a property tax refund?
Prior to 1 January 2014, applications can be made to IRAS for tax refunds if the property has been left continuously vacant for 30 days or one calendar month due to inability to find tenants or if it is undergoing repairs to make it fit for occupation. Properties which are vacant pending sale are ineligible.
However, following the changes announced in Budget 2013, the property tax refund concession will be removed. With effect from 1 January 2014, all unoccupied buildings will be taxed at the prevailing tax rates.