Property tax is a tax that is levied on the ownership of property in Singapore. It is payable by both owner-occupiers and non-owner-occupiers. The amount of property tax that you have to pay depends on the annual value of your property and the occupancy status of your property.
What is Annual Value?
Annual value is the estimated annual rent that your property could command if it were rented out on the open market. It is used to calculate the amount of property tax that you have to pay.
How to Calculate Annual Value?
The annual value of your property is calculated by IRAS based on a number of factors, including the size of your property, the location of your property, and the type of property. You can find out the annual value of your property by logging into the IRAS e-Service and viewing your property portfolio.
How to Calculate Property Tax?
Property tax is calculated by multiplying the annual value of your property by the relevant property tax rates. The property tax rates are different for owner-occupiers and non-owner-occupiers.
Owner-occupier property tax rates:
The owner-occupier property tax rates are progressive, which means that the higher the value of your property, the higher the property tax rate. The property tax rates for owner-occupiers are as follows:
- First $8,000: 0%
- Next $36,400: 4%
- Above $44,400: 6%
Non-owner-occupier property tax rates:
The non-owner-occupier property tax rates are also progressive, but they are higher than the owner-occupier property tax rates. The property tax rates for non-owner-occupiers are as follows:
- First $30,000: 10%
- Next $14,400: 12%
- Above $44,400: 14%
How to Pay Property Tax?
Property tax is payable yearly. You can pay your property tax online, by GIRO, or by cheque.
Online payment:
You can pay your property tax online using the IRAS e-Payment service. To do this, you will need to create an IRAS e-Account.
GIRO payment:
You can set up a GIRO payment for your property tax. This means that IRAS will automatically deduct your property tax from your bank account each year. To set up a GIRO payment, you will need to fill in a GIRO form and submit it to IRAS.
Cheque payment:
You can pay your property tax by cheque. Make the cheque payable to “Inland Revenue Authority of Singapore” and write your property tax reference number on the cheque.
Late payment penalties:
If you pay your property tax late, you will be charged a late payment penalty of 5% of the unpaid tax.
Reliefs and exemptions:
There are a number of reliefs and exemptions available for property tax. These include:
- Relief for elderly homeowners
- Relief for disabled homeowners
- Exemption for owner-occupied properties with an annual value of less than $8,000
For more information on property tax, please visit the IRAS website.