Owner-Occupied Tax Rates

An owner-occupier tax rate is applicable only when you’re residing in a residential property and you’re also the owner of that property. IRAS introduced the concept of owner-occupier rates in order to uplift home possession in Singapore. An owner-occupier tax rate will be determined at a progressive tax rate depending on your property’s annual value.
A residential property which is not occupied by its owner will be taxed at a higher tax rate while an owner-residing property (inclusive of HDB flats) will be taxed at a lower tax rate.

Tax Rates for Owner-Occupied Properties

Yearly Value Payable Property Tax Effective From 1 January 2015
Initial S$8,000 Following S$47,000 S$0 S$1,880 0% 4%
Initial S$55,000 Following S$15,000 S$1,880 S$900 Not applicable 6%
Initial S$70,000 Following S$15,000 S$2,780 S$1,200 Not applicable 8%
Initial S$85,000 Following S$15,000 S$3,980 S$1,500 Not applicable 10%
Initial S$100,000 Following S$15,000 S$5,480 S$1,800 Not applicable 12%
Initial S$115,000 Following S$15,000 S$7,280 S$2,100 Not applicable 14%
Initial S$130,000 More than S$130,000 S$9,380 Not applicable 16%

Tax Rates (2014 Rates)for Residential Properties Owner

The Value on an Annual Basis Property Tax You’re Liable to Pay 2014 Tax Rates
Initial S$8,000 Following S$47,000 S$0 S$1,880 0% 4%
Initial S$55,000 Following S$5,000 S$1,880 S$250 Not applicable 5%
Initial S$60,000 Following S$10,000 S$2,130 S$600 Not applicable 6%
Initial S$70,000 Following S$15,000 S$2,730 S$1,050 Not applicable 7%
Initial S$85,000 Following S$15,000 S$3,780 S$1,350 Not applicable 9%
Initial S$100,000 Following S$15,000 S$5,130 S$1,650 Not applicable 11%
Initial S$115,000 Following S$15,000 S$6,780 S$1,950 Not applicable 13%
Initial S$130,000 Following S$130,000 S$8,730 Not applicable 15%

Tax Rates (Owner-Occupied) Before 1 January 2014

Tax Rates The Value on a Yearly Basis
0 First – S$6,000
4% Following – S$59,000
6% Amount more than S$65,000

Tax Rates for Non-Owner Occupied Properties

Yearly Value Payable Property Tax Effective From 1 January 2015
Initial S$30,000 Following S$15,000 S$3,000 S$1,800 10% 12%
Initial S$45,000 Following S$15,000 S$4,800 S$2,100 Not applicable 14%
Initial S$60,000 Following S$15,000 S$6,900 S$2,400 Not applicable 16%
Initial S$75,000 Following S$15,000 S$9,300 S$2,700 Not applicable 18%
Initial S$90,000 Beyond S$90,000 S$12,000 Not applicable 20%

Non-Owner Occupied Residential Properties (Tax Rates)

Yearly Value Property Tax You Need to Pay 2014 Tax Rates
Initial S$30,000 Following S$15,000 S$3,000 S$1,650 10% 11%
Initial S$45,000 Following S$15,000 S$4,650 S$1,950 Not applicable 13%
Initial S$60,000 Following S$15,000 S$6,600 S$2,250 Not applicable 15%
Initial S$75,000 Following S$15,000 S$8,850 S$2,550 Not applicable 17%
Initial S$90,000 Beyond S$90,000 S$11,400 Not applicable 19%

A Few Examples to Understand How an Owner-Occupied Tax Rate Varies With Different Situations

You own more than 1 residential property

You own an HDB flat or a private residential property (A) plus you bought another property (B) recently. You’ll be able to submit an application for the “owner-occupier” tax rates on your property (B) only if you’re residing in the property. The property (A) concession shall be withdrawn starting on the date during which you started enjoying the “owner-occupier” rates on your property (B).

You own a property jointly with another party (not your spouse)

When you’re owning 2 residential properties (A) and (B) with a different party (apart from your spouse) like your siblings, parents, etc., you will be eligible to apply for a concession for both the properties.
Say, as an owner you’re residing in property (A) and your brother is an occupant of the residential property (B). In this scenario, your brother can apply for a concession on property (B) and you can raise an application for the “owner-occupier” rates for your property (A).

You rent out a section of your property

When you decide to rent out your property partially while you’re still residing in it, you’ll still qualify to submit an application for “owner-occupier” rates.

Are “owner-occupier” tax rates applicable to a property with a deceased owner?

As a property owner, you can apply for concessionary “owner-occupier” tax rates only when you own and live in that residential property. As a deceased owner, you will not qualify for it. Upon the owner’s demise, the tax rates that are applicable will be adjusted and the property will be subjected to a higher tax rate (residential).
Also, an LPR (Legal Personal Representative) should transfer the legal rights of the property to respective beneficiaries at the earliest. Later, the application for “owner-occupier” tax rates will be considered by IRAS depending on the ownership structure that is set up newly.

Is there an extension of the “owner-occupier” tax rates post the death of a property owner?

In case the “owner-occupier” tax rate was applied on a property before the owner’s death, the “owner-occupier” tax rates will be applicable for a prolonged period of 2 years (maximum) from the date on which the owner expired or the date on which the property was transferred to a beneficiary, whichever occurs first will be considered. However, if the “owner-occupier” tax rates were not applied to the residential property before the owner’s demise, an extension will not be given. The property will continue to be taxed at a residential tax rate that is applicable (no concession will be granted).

An added extension of the owner-occupier rates post the demise of a property’s owner

In case the transfer of the property to the respective beneficiaries needs to be restricted, you can make an appeal to IRAS requesting the concerned authorities to provide you with an extension of the owner-occupier tax rates. For example, this added extension will be helpful when a property owner’s nominated beneficiary is below 21 years of age (the legal age). Also, for this to be applicable a beneficiary should be residing at the property and should not be exercising owner-occupier rates on another property.
An owner-occupier tax rate will not be applicable under the following circumstances:

  • You’ve rented out your entire property.
  • You’ve sold the residential property.
  • The residential property belongs to an association, organisation, or a group of individuals.
  • The nature of property is industrial, commercial, or it is a land.

Applying for “Owner-Occupier” Tax Rates

In case you’re living in your residential property but you’re being taxed at a residential tax rate, with the help of an e-Service named “Apply for Owner-Occupier Tax Rates”, you’ll be able to apply for “owner-occupier” tax rates. On the same e-Service section, you can also view the status of your claim by clicking on “View Claim Status”.

Other Queries You Might Have

Q. How can I know if my property has been taxed at “residential” or “owner-occupier” tax rates?

A. The type of tax rate that has been applied to your property will be mentioned under the “Tax Rates and AV” Column in your Notice of Assessment. It will be mentioned within the brackets as [Residential Tax Rates] or [Owner-Occupier Tax Rates].

You can also check for this information via “e-Service” by signing in to “mytax.iras.gov.sg” using your SingPass. Click on “Property” followed by “View Property Portfolio” to check the same.

Q. I stay in property “ABC” and my spouse resides in property “XYZ”. Will the “owner-occupier” tax rates be applicable to both the properties?

A. According to PTA (Property Tax Act), when 2 owners are wedded to each other, the “owner-occupier” rates will be applicable to only 1 “owner-occupied” home. This holds good irrespective of whether those properties are owned by the spouses separately or jointly.

Q. What tax rates are applicable when I own multiple residential properties?

A. The “owner-occupier” tax rates will be granted only to 1 property that is occupied and owned by you. For any following property you own, you’ll be liable to pay a residential tax rate even if you’ve occupied it as your “second home”.

Q. Under what circumstances the “owner-occupier” tax rates will be applied automatically?

A. The owner-occupier rates will be automatically applied in the following scenarios:

  • When you buy a DBSS flat, a new/resale HDB, or a new EC (Executive Condominium), you need not apply for the “owner-occupier” tax rates.
  • When you’re a Singapore Permanent Resident or a Singapore citizen and you buy a private residential property, the “owner-occupier” rates will be applied automatically. This will be applicable when you/your spouse is not enjoying the concessionary tax rates currently on another property. In case you don’t prefer to reside in the property, you need to intimate IRAS immediately so that you can avoid any kind of penalty for non-notification or late notification.

Q. Why am I being taxed at a residential tax rate even when my residential property is not rented out to someone?

A. When your residential property’s rental or lease period ends, and you as an owner get back to residing at your residential property, you will need to apply again for the owner-occupier rates so that the tax rates are restored to your residential property.

Q. Should I intimate IRAS when I intend to alter my property’s usage from “residential” to “non-residential”?

A. Yes, you will need to inform IRAS in less than 15 days in writing from the date on which the change happened.

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