Higher property taxes for Singapore homeowners as government raises residential annual values

• Dec 02, 2022

RESIDENTIAL property owners in Singapore are poised to pay higher property taxes next year, with the annual values of both private and public housing rising in tandem with surging market rentals.

Annual values (AV) of most residential properties will be revised upwards from Jan 1, 2023, as part of the Inland Revenue Authority of Singapore’s (Iras) annual review of properties to calculate property tax payable.

Since AVs were last revised on Jan 1, 2022, Iras said market rentals of HDB flats and private residential properties rose by more than 20 per cent. The AVs of residential property will therefore be revised from Jan 1, 2023, to reflect this, it said. 

To mitigate the effect of higher AVs, all owner-occupied properties will receive a one-off property tax rebate capped at S$60 – equivalent to 60 per cent of the 2023 property tax bill, said the Ministry of Finance and Iras in a press statement on Friday (Dec 2). 

This means that the majority of HDB residents will pay between S$30 and S$70 more in property tax after rebate next year, compared with the property tax this year, they said. 

Owners of more expensive properties will see a larger tax bill, in line with revised tax rates announced in Budget 2022. Changes were made to put in place a more progressive structure, with higher value and non-owner-occupied residential properties being taxed at higher rates. Owner-occupiers of one- and two-room HDB flats continue to be exempted from paying property tax.