The annual value of Housing Board flats and most private residential properties will be raised from Jan 1, as part of Inland Revenue Authority of Singapore’s (Iras) yearly review of properties to calculate how much taxes should be paid, the authorities said.
A property’s annual value is its estimated yearly rent if it were to be rented out, and is determined based on the market rents of comparable properties and other factors.
The annual value is assessed for the purpose of property taxes, which are Singapore’s primary means of taxing wealth and are paid yearly.
Since the last revision of annual values on Jan 1, 2023, market rents have increased by about 20 per cent for HDB and private residential properties, said the Ministry of Finance (MOF).
As announced in Budget 2022, the second and final step of property tax rate increases will also take effect from Jan 1, with steeper hikes for higher-end properties.
The property tax rate increase will affect only residential properties not occupied by their owners and owner-occupied homes with an annual value of more than $30,000. All owner-occupied HDB flats are not affected, while owner-occupied private homes will get a 15% rebate.
The authorities said property tax rates for residential properties not occupied by their owners, including investment properties, will be increased to 12 per cent to 36 per cent by 2024. This compares with the current 11 per cent to 27 per cent tax levied on such properties.
