2021 Singapore Property Tax Guide: What Are The Rates And How to Calculate Them

When you own a property in Singapore, you are automatically required to pay property taxes. These taxes differ from your income tax, rental tax and stamp duty. Income tax are taxes on your income, rental taxes are only applicable on selected property owners, and stamp duty are charges imposed when you purchase a property. Property tax, also known as wealth tax, are taxes levied on you for owning a property.

Most property owners are however unaware of how these taxes are calculated as the property tax levied changes on a yearly basis. Here’s a guide to IRAS property tax rates, calculations, and more. 

 

Property Tax in Singapore: An Overview

What is property tax?

They are taxes levied on you for owning a property.

What is property tax rate?

The Property Tax Rate is calculated based on progressive tax rates, and whether the unit is owner occupied or non-owner occupied. 

How to calculate property tax?

Annual Value (AV) x Property Tax Rate = Property Tax Payable (or you may consider using the IRAS progressive tax rate calculator)

What are the late payment charges for property tax?

There is a 5% penalty charged for late payments.

As mentioned above, property taxes are chargeable to all property owners as long as they own a property.

How IRAS property tax is calculated may differ depending on: 

  1. The property’s Annual Value (AV) 
  2. The IRAS property tax rates based on the occupancy status of your property.

 

How to Calculate Property Tax in Singapore 

The IRAS property tax payable is calculated with this formula:

Annual Value (AV) x Property Tax Rate = Property Tax Payable

For example, if the AV of your property is $30,000 and your tax rate is 10%, you would pay $30,000 x 10% = $3,000.

 

What is the Annual Value (AV)?

Your property’s AV is determined by the Inland Revenue Authority of Singapore (IRAS) on a yearly basis.

The Annual Value rates fluctuate based on the market rental value of surrounding properties in the area. Hence when the rental value is up the AV rates will go up, and similarly when the rental value heads south, so will the AV rates.

The Annual Value is calculated based on the rental value minus reasonable furniture rental and maintenance fees. Let’s take Mr. Chong’s rental unit for example:

Monthly rental income: $2,500
Monthly furniture rental: $900
Monthly maintenance: $500
$2,500 – ($900 + $500) = $1,100

So the AV for his unit will be $1,100 x 12 months = $13,200

To make it easier for property tenants, the IRAS will send them a notification every time there is a change to their AV rates. However, property owners can also check the current AV rates at anytime from the Inland Revenue Authority of Singapore (IRAS) at anytime by logging into their website.

On a side note, if you are purchasing a property, you can check the current and past 5 years AV value of the property from IRAS at $2.50 a search.

Related article: Property Annual Value: What Is It And How Do You Check Yours?

 

Property Tax Rate: What Is It?

The Property Tax Rate is calculated based on progressive tax rates, and whether the unit is owner-occupied or non-owner occupied. The progressive tax rates indicate that the higher your property value is, the higher your tax rate will be. 

 

IRAS Property Tax Calculation

Owner-occupier property tax rates

If you are an owner-occupier, the below tax rates apply to you. 

Annual Value ($)

Rates (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

 

Above $130,000

16%

$9,380

Source: IRAS

As you can see, your property’s annual value (and the occupancy status) determine your property tax rate. For example, if your home has an AV of $36,000, you will be charged 0% on the first $8,000, and 4% on the following $28,000. That sums up to $1,120. 

Non-owner-occupier property tax rates

If you don’t live in the said property and are renting the entire place out, here are the rates for you:

Annual Value ($)

Rates (effective 1 Jan 2015)

Property Tax Payable

First $30,000

10%

$3,000

Next $15,000

12%

$1,880

 

First $45,000

$4,800

Next $15,000

14%

$2,100

 

First $60,000

$6,900

Next $15,000

16%

$2,400

 

First $75,000

$9,300

Next $15,000

18%

$2,700

 

Above $90,000

20%

$12,000

Source: IRAS

Using the same example of $36,000 AV, for non-owner-occupier properties, you will be charged 10% on the first $30,000, and 12% on the next $6,000. That makes it $3,720. 

 

Singapore Property Tax Calculator

IRAS progressive tax rate calculator

If all these numbers are confusing you, an easier way to get your property tax rate calculations would be to use the IRAS progressive tax rate calculator.

 

How to Check for Outstanding Tax

Via Check Property Tax Balance page:

For this, you will need:

  1. Your property address
  2. Your tax reference number (i.e. NRIC/FIN number) OR your property tax reference number

Via mytax.iras.gov.sg site:

This method allows you to check your past transactions. You will need to log in with your Singpass details to do so.

 

Obligation to Update IRAS to Avoid Penalties

It is absolutely crucial to update the authorities with any change of information pertaining to your property. Misinformation or failure to inform will result in a hefty fine.

Here are some of the events that require updating of:

  1. Sale or Transfer of Property Ownership
  2. Completion of Demolition of Property
  3. Rental of Property
  4. Increase in Rental Charge
  5. Premium Charge for Letting
  6. Cessation of Owner-Occupation

You may read more about the details here.

 

Property Tax Reliefs 2020: For Residential Properties (HDB flats, Condos, Landed Property)

As you may have heard, the recent Resilience Budget 2020 to help stimulate the economy during the COVID-19 crisis had many property tax reliefs. However, they are not for residential properties. This means you must continue to pay property tax for your HDB flat, condo, and landed homes. 

As seen above, however, as long as you are an occupant in the property, you will enjoy lower owner-occupier property tax rates, which is considered an ongoing relief measure. 

 

Exclusion List to Progressive Property Tax Rates

There are selected properties that are exceptions to the property tax rates and have flat property tax rates of only 10%. They will however need to have received planning approval from the government, but no application to IRAS is necessary.

According to IRAS, the list of exceptions is as below:

  1. Accommodation facilities within any sports and recreational club
  2. Chalet
  3. Child care centre, student care centre, or kindergarten
  4. Welfare home
  5. Hospital, hospice, or place for rehabilitation, convalescence, nursing care or similar purposes
  6. Hotel, backpackers’ hostel, boarding house or guest house
  7. Serviced apartment
  8. Staff quarters that are part of any property exempted from tax under s6(6) of the Property Tax Act
  9. Student’s boarding house or hostel
  10. Workers’ dormitory

For the existing 10% tax rate to apply, the property must have received planning approval for the above use. No application to IRAS is required.

 

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