Homeowners to enjoy lower property taxes as home values drop

Some HDB owners will pay no tax at all.

The Inland Revenue Authority of Singapore (IRAS) today revealed that mowst homeowners will enjoy lower property taxes, as the annual values of real estate drop in line with rents.

All owners of HDB flats will pay lower or no property tax next year, the IRAS said.

HDB owners will see tax savings of 9 to 24 per cent. All 1- and 2-room HDB flat owner-occupiers and 28,200 3-room HDB flat owner-occupiers will not have to pay any property tax when the revised annual values take effect from Jan 1 next year, the IRAS added.

Meanwhile, over 80% of private property owners will see tax savings of between 3% and 20%.

The IRAS reviews the Annual Values (AVs) of properties annually to ensure that they reflect prevailing market rentals. Property tax is a tax on property ownership and it is payable on all properties regardless whether the property is rented out, owner-occupied, or left vacant. 

Property tax has to be paid by 31 Jan 2016. A 5% penalty will be imposed on property owners who fail to pay or have not arranged to pay their tax by the given date.