Guide to Property Tax in Singapore

Property tax is the tax applied by the Inland Revenue Authority of Singapore (IRAS) on the ownership of a property. Property tax is applicable irrespective of whether the property is owner-occupied, has been rented out, or left vacant. Property tax is not the same as income tax. Income tax is applicable on all your earned income including the income derived from renting out your property.

How to Calculate Property Tax?

Property tax is calculated as follows:

Your property’s Annual Value (AV) x the “Property Tax Rate” that is applicable

Here, Annual Value is the estimation of your property’s annual rent (assuming you’ll rent out your property).

Residential Properties (include HDB flats, condominiums, and other residential buildings):

  • Tax rates for owner-occupied properties - Between 0% and 16%.
  • Tax rates for non-owner occupied properties - Between 10% and 20%.
  • Tax rates are dependent on the AV bands.

Non-Residential Properties:

Land, commercial/industrial buildings, etc. are taxable at 10% of the AV.  The tax rates (owner-occupier) are not applicable to a non-residential property even if you have purchased the property for your occupation or own use.

When to Pay Property Tax

Property tax is payable on a yearly basis. Every year end, you will receive a tax bill for your property for the following year. Payment on your property tax bill is due on 31 January of every year.

List of Properties That Come Under the Exclusion List

The following properties are on the “Exclusion List” and will be subject to 10% tax:

  • Welfare home.
  • Backpackers' hostel, guest house or boarding house, hotel.
  • Chalet.
  • Serviced apartment.
  • Accommodation facilities that are inside recreational clubs or sports clubs.
  • Kindergarten, student care centre, or child care centre.
  • Hospital, nursing care, hospice, or an area for rehabilitation, convalescence, or any location for similar purposes.
  • Student's boarding hostel or house.
  • Workers' dormitory.
  • Staff quarters that belong to a property that is exempted from paying tax under the s6 (6) of PTA (Property Tax Act).

For any of the aforementioned properties, planning approval must be received. There is no requirement to apply to the IRAS.

Everything You Need to Know About “Annual Value”

How is the AV of a building determined?

The Annual Value of a building is the gross yearly rent (estimated) a property would earn in case the property was rented out. This excludes maintenance charges, furnishings, and furniture. It is calculated depending on the market rentals (estimated) of similar kind of properties. It will not be determined based on the rental income that is actually received.

The AV calculation method will not vary depending on whether the property is vacant, owner-occupied, or rented out. The property tax you’re liable to pay will be calculated by applying the pertinent tax rate on the Annual Value.

What factors are taken into consideration when IRAS determines the AV of a building?

  • Rentals of comparable or similar properties in the locality.
  • Property’s size, location, and condition.
  • Other related physical characteristics.

How is the Annual Value determined for land & developmental sites?

It is calculated at 5% of the freehold market price (estimated). This is applicable to vacant land as well as land which is under construction.

Let’s assume your land’s freehold market value is S$6 million. The Annual Value of your land will be S$300,000 (5% x S$6,000,000).

How is the Annual Value determined for specialised properties?

Properties like refineries, petrochemical & power plants are occasionally rented out and hence known as specialised properties. The Annual Value of a specialised property can be determined in 2 ways:

Statutory Gross Receipts Method

Your specialised property’s AV will be calculated at 5% of the freehold market rate. For ports and hotels, this method will be used to calculate the Annual Value.

Profit's Method and Contractor's Test

Another method to calculate the AV of your property, in this method, receipts and costs will be used in order to arrive at an estimation of market rents of the specialised properties.

Annual Value review process

IRAS will review the Annual Value of your property on a yearly basis. This is done in order to project the variations in the market rental rates of similar or comparable properties. There will be a correction in the Annual Value if the most recent market rent information doesn’t match your existing Annual Value.

In case your property goes through a physical alteration, it could have an impact on its rental value. IRAS will revise your Annual Value from the date on which the physical change was made (as applicable).

As a property owner, you will receive a “Valuation Notice” from IRAS. This notice will intimate you in relation to any downward or upward adjustment that was done to the Annual Value and the date on which it will be effective from.

Property Tax “e-Services” You Need to Know

You can perform the following activities via e-Services:

  • Choose your preference between paper and electronic notices.
  • You can access your “account summary” which includes information such as account statement, account details (tax), payment plan schedules, and more.
  • You can access your “property portfolio” details like tax rate, annual value, etc.
  • Submit an application for “owner-occupier” rates.
  • Submit a GIRO application form in order to make your tax payment via your internet banking account with OCBC.

Why Choose Electronic Property Tax (e-PT) Bills for Your Residential Property?

  • You get to access your e-PT bills securely via SingPass.
  • You can access e-PT bills of up to 3 years at once irrespective of your location and time.
  • You will be notified on a timely basis regarding your dues and respective deadlines to make your payment.

Steps to Check Your Outstanding Property Tax

  • With the help of your VA (virtual assistant), “Ask Jamie”.
  • With the help of an e-Service called "Check Property Tax Balance" (you don’t have to log into mytax.iras.gov.sg in this case):
    • Click on “Proceed with search”.
    • Get ahead with your search by keying in the address of your property or your tax reference number such as your NRIC or the tax reference number of your property.
    • Input the “verification code” as displayed.
    • Choose “Search for property”. Make your pending property tax payment by using your property tax reference number.

Note: In case you want to access the old payment you’ve made, you can view them by signing into “mytax.iras.gov.sg” (you need to navigate to "View Account Summary").

Other Questions You Might Have

Q. How do I unsubscribe from getting e-PT bills?

A. You can do it in 2 ways:

  • Via SMS – You need to send an SMS to 71717 in the following format:

PAPERBILL (space) your mobile number (space) last 4 number of your FIN/NRIC (example: PAPERBILL 98449971 4567)

  • Via IRAS official website

You need to sign in to “mytax.iras.gov.sg” and access the following path:

Account-> Manage e-Notice Preferences & cancel your subscription by unchecking the “Subscribe” box.

Q. What tax rates are applicable for shopflats or shophouses with two distinctive uses?

A. The commercial component will be taxed at 10%. On the other hand, the residential component will be subjected to a property tax rate that is applicable to residential properties.

Q. What happens when I choose to stop renting out my residential property and I decide to move in instead?

A. When your property’s lease period ends and you move back into your residential property, you’ll need to submit an application again so that the “owner-occupier” tax rates are restored with respect to your property.

Q. How do I check the Annual Value of my property?

A. With the help of an e-Service called “View Property Portfolio”, you’ll be able to check the Annual Value of your property. AVs will be displayed as per the current date. Alternatively, you can also use “Check Annual Value of Property” by paying S$2.50 per search.

Q. Can I raise an objection to the Annual Value?

A. The Annual Value and/or its effective date can be objected by you in less than 30 days from the Valuation Notice date. In case you didn’t get the Valuation Notice, you can raise an objection to the Annual Value at any given point in time of the year by proving that the market values have become lower than the Annual Value. However, you will not be eligible to raise an objection to the tax rates.

Q. What can I do if my objection is rejected?

A. You can appeal to VRB (Valuation Review Board) in less than 30 days of receiving your notice (in relation to the result of your objection filed). Your appeal should mention the reasons due to which you’re making an appeal and also if you’re being represented by an agent.

You’ll be liable to make the following fee payments to VRB:

  • A fee of S$50 will be applicable for your residential property which is taxed at an owner-occupier tax rate or,
  • A fee of S$200 for any other kind of a property.

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