Property tax is the annual levy every Singapore property owner pays to the Inland Revenue Authority of Singapore (IRAS). Unlike Buyer’s Stamp Duty, which you pay once at acquisition, property tax recurs every year for as long as you hold the property. The rates are modest for a 4-room HDB owner-occupier (often under S$200 a year), but they escalate steeply for larger homes and for investors who rent out residential units.
- Property tax is an annual tax on every Singapore property, paid to IRAS by 31 January each year.
- It is calculated as AV × tax rate. AV (Annual Value) is IRAS’s estimate of the annual rent the property could command, unfurnished.
- Owner-occupiers get the concessionary rate — a progressive 0-32% scale with a generous S$12,000 AV zero band.
- Non-owner-occupiers pay investor rates — flat 12/28/32/36% bands, with no zero band and no concessionary relief.
- Rates were increased in Budget 2023 and held steady in Budget 2026 — higher-AV owners are feeling the progressive bite.
How property tax actually works
The formula is simple: Annual Tax Payable = Annual Value × Applicable Rate. Annual Value (AV) is IRAS’s administrative estimate of the rent the property could fetch on the open market if it were let out unfurnished, on a yearly tenancy. IRAS assesses AV based on current market rents of comparable properties within the same development, district or estate. For a condo in a mature development, the AV moves up and down as rental comparables move — though not in lock-step; AV revisions typically lag spot rent by two to four quarters.
Two different rate schedules apply, depending on whether the owner lives in the property (owner-occupier) or rents it out or leaves it vacant (non-owner-occupier). Owner-occupier rates are concessionary. Non-owner-occupier rates are much higher. The policy intent is to reward owner-occupation and to capture a larger share of rental income at source.
The 2026 rate schedule — owner-occupier
The owner-occupier schedule is progressive, with seven bands rising from 0% on the first S$12,000 of AV to 32% on AV above S$100,000. The structure is designed so that most HDB owner-occupiers pay very little property tax, while owners of premium homes pay meaningful amounts. A key change was introduced in Budget 2023: the top rate was raised from 23% to 32% for AV above S$100,000, with interim tiers bumped too. Budget 2026 held these rates steady — no further increases, no decreases.
The 2026 rate schedule — non-owner-occupier
If you rent out your property, or leave it vacant (held as investment), the non-owner-occupier rates apply. Four bands: 12% on the first S$30,000 of AV, 28% on the next S$15,000, 32% on the next S$15,000, and 36% on AV above S$60,000. Note that there is no zero band. Even a modest AV attracts 12% tax. For a landlord with a property at S$45,000 AV, annual property tax is roughly S$7,800 — an important line item in any rental-yield computation.
How IRAS determines Annual Value
AV is not what the owner declares, and it is not the actual rent the property commands. IRAS uses a bottom-up comparables approach: for each property, it references a pool of comparable rented units within the same development and computes a central tendency (typically a median or trimmed mean). For HDB flats, IRAS publishes a simplified AV table updated each year. For private condos, AV follows a comparable-rent methodology with adjustments for size, floor level and facing.
IRAS reviews AV annually. If market rents in your development have moved more than 5-10% over the past 12 months, expect a re-assessment notice in November or December. You have 30 days from the date of the notice to object under s.20 of the Property Tax Act if you disagree with the revised AV. Objections that succeed typically rely on specific, documented evidence — actual rental agreements, a licensed valuer’s opinion, or comparable-rent data showing the AV is above market.
Worked example 1 — owner-occupier 4-room HDB
A Singapore-citizen owner-occupier of a 4-room HDB flat in a mature estate. IRAS-assessed AV for 2026: S$13,500.
Next S$1,500 × 8% = S$120
Annual property tax = S$120
For the owner-occupier HDB household, property tax is effectively a token charge. This is deliberate policy — the MOF has kept HDB owner-occupier tax burdens minimal since the current schedule was introduced.
Worked example 2 — owner-occupier mid-sized condo
A Singapore-citizen owner-occupier of a 3-bedroom condo in the OCR. IRAS-assessed AV: S$38,000.
Next S$18,000 × 8% = S$1,440
Next S$8,000 × 12% = S$960
Annual property tax = S$2,400
On a S$1.6m market-value condo with an S$38,000 AV, the effective property-tax rate is 0.15% of market value per annum — substantially lower than property-tax rates in most comparable global cities.
Worked example 3 — investor condo (non-owner-occupier)
An investor holds the same 3-bedroom OCR condo in worked example 2 for rental purposes. The unit is rented out or held vacant. Non-owner-occupier rates apply.
Next S$8,000 × 28% = S$2,240
Annual property tax = S$5,840
The same property, same AV, same owner — but held as investment rather than occupied — attracts 2.4× the property tax. Budget this into rental-yield calculations: property tax is typically the second-largest operating cost for a Singapore landlord after mortgage interest.
Owner-occupier concession — eligibility rules
To qualify for the owner-occupier rate, the property must be occupied by the owner as their main residence. An individual can only enjoy the owner-occupier rate on one property at a time. Joint owners of two properties cannot claim owner-occupier on both — only one can receive the concession.
A spouse who also owns property can claim owner-occupier on their own home, provided each home is actually occupied by at least one of the owners. The rule, in effect, is: one owner-occupier concession per owner. Overseas assignments, military posting, or temporary vacancy up to 24 months do not automatically forfeit the concession — but IRAS must be notified if the property is not occupied for a sustained period.
Payment — deadlines and billing
Property tax bills are issued in December and are payable in full by 31 January of the following year. Most owners use GIRO monthly instalments — 12 instalments starting in January, automatically debited from the owner’s bank account. Late payment attracts a 5% surcharge after 30 days, plus monthly interest of 1.5% per month up to 12 months (compounding on the unpaid amount).
Reliefs, rebates and exemptions
Parenthood Property Tax Rebate (budget-driven): From time to time, the Ministry of Finance grants one-off rebates — for example, Budget 2023 announced a rebate of up to S$60 for lower-AV owner-occupied homes for the 2023 tax year. Budget 2026 did not introduce new rebates but retained the existing schedule.
Heritage/conservation properties: Owners of gazetted conservation properties may apply for concessionary assessment where the conservation designation restricts commercial use. Applications go through URA’s conservation secretariat.
Charitable or educational use: Properties used exclusively for registered charity or educational purposes may qualify for full or partial exemption under s.4 of the Property Tax Act. Application is made to IRAS with supporting documentation.
Appealing an AV assessment
If you believe your AV is too high, you can object within 30 days of the notice. The strongest objections bring specific data: (a) actual rental agreements for comparable units in your development, (b) a signed opinion from a licensed valuer, or (c) URA-registered rental transactions for comparable private homes. IRAS considers objections on the balance of evidence; a general argument that ‘rents have softened’ without supporting numbers is unlikely to succeed.
Common mistakes
First — do not assume the HDB standard AV will stay constant. IRAS updates AV tables annually, and estate-level rental movements feed into the tables. Budget a modest property-tax increase year-on-year.
Second — do not forget to notify IRAS when a property stops being owner-occupied. If you rent out the spare room or move overseas and let the property, non-owner-occupier rates apply from the first day of the change. Late notification attracts back-assessment.
Third — do not assume property tax is deductible against rental income on your personal income tax return. It is, but only for the portion of the year the property was rented out, and only in the year it was incurred. Keep clean records.
Frequently asked questions
1. When is property tax due each year?
By 31 January. Bills are issued in December. Most owners use GIRO monthly instalments.
2. What if I own the property jointly with my spouse?
Property tax is levied on the property, not the individual. The bill is addressed to the first-named owner but is a joint obligation. Owner-occupier concession applies if at least one owner occupies as main residence and no other owner has claimed the concession on another property.
3. Is property tax deductible against rental income for income tax?
Yes — for the period the property is rented out. The deduction is claimed in your personal income tax return under rental expenses.
4. What is the difference between Annual Value and market rent?
AV is IRAS’s administrative estimate based on comparables. Market rent is the rent a willing landlord can command from a willing tenant. AV typically lags market rent by 2-4 quarters, so AV may understate rent in rising markets and overstate rent in falling markets.
5. Can I appeal my AV?
Yes, within 30 days of the assessment notice. Objections should cite specific comparable-rent data, preferably a licensed valuer’s opinion or URA-registered lease transactions.
6. If I leave my HDB flat vacant, do I still pay the owner-occupier rate?
For short periods yes. If the vacancy extends beyond 24 months, or if you have moved overseas and the flat is empty, IRAS may reassess under the non-owner-occupier schedule. Contact IRAS to discuss your specific situation before the 24-month mark.
7. Does property tax change if I add or remove a room?
Structural changes that affect the usable floor area will trigger a reassessment. Routine renovation (flooring, repainting, kitchen replacement) does not.
8. How is property tax calculated on a new condo not yet TOP?
Before TOP, the property is typically vacant land or a construction site and property tax is assessed on the land value at non-residential rates. Once TOP is issued, residential property tax kicks in. Developers typically pay the pre-TOP tax; this rolls over to the buyer from the date of Temporary Occupation Permit onwards, pro-rated.
9. What happens if I sell a property mid-year?
Property tax is apportioned between buyer and seller at completion. Your conveyancing solicitor handles the apportionment on the completion statement.
10. Is there a discount for senior citizens?
No structural discount. Budget packages have occasionally included one-off rebates for lower-AV owner-occupied homes (benefiting retirees who downsize to HDB flats), but there is no permanent senior-citizen concession.
11. Can I use CPF to pay property tax?
No. Property tax must be paid in cash. CPF Ordinary Account is usable for mortgage servicing and conservancy fees (on some schemes), but not for property tax or utilities.
12. Where do I check my current AV?
Log in to myTax Portal (IRAS) with your Singpass. Your AV and current property tax assessment are shown under the ‘Property’ tab.
Related LovelyHomes guides
- → ABSD Singapore — Complete Guide 2026
- → Buyer’s Stamp Duty Singapore 2026
- → Singapore Rental Yield Guide 2026
- → CPF for Property Purchase Singapore 2026
- → Singapore Landed Property Guide 2026
- → Seller’s Stamp Duty Singapore 2026
Disclaimer: This article is produced by the LovelyHomes editorial team for general information only. Figures, rates and rules reflect IRAS, HDB, URA, MAS and CPF publications current as at April 2026 and are subject to change. IRAS rates shown follow the Budget 2023 schedule, held steady through Budget 2026. No information on this page constitutes legal, tax or financial advice. Buyers should obtain independent professional advice before making a property decision.
0 Comments