HDB flat owners to get tax cuts in 2015

To reflect the dip in market rentals.

All one- and two-room owner-occupiers of HDB flats will continue to pay no property tax in 2015 while those in bigger flats will see reductions compared to 2014.

According to the Inland Revenue Authority of Singapore, the reduced property taxes will apply from 1 January 2015, when the Annual Values (AVs) are lowered by about 3% to reflect the dip in market rentals.

This is the second year in which HDB households will see reduced property taxes. As a result of the more progressive tax rates implemented since 2014, as well as the latest revisions in AVs, HDB residents will enjoy tax savings of between $42 and $54 in 2015 compared to two years ago.

The AV is the estimated annual market rent of a property. Property tax payable on HDB flats is calculated by applying the relevant set of property tax rates on their AVs. Most HDB flats are taxed at owner-occupier tax rates. For non-owner-occupied HDB flats, they are taxed at the residential property tax rates.