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As property taxes for both Housing Board (HDB) flats and private properties are set to increase in the coming year, the Singaporean government has unveiled a one-off rebate of up to 100 per cent. This move aims to alleviate the financial burden on affected property owners grappling with concerns over the escalating cost of living.
The Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS) disclosed that the rise in property taxes is attributed to the surge in market rents and annual values for most residential properties.
The one-off rebate, applicable to all owner-occupied residential properties, will be implemented using a tiered system. This approach ensures that the property tax regime remains progressive, with those possessing greater means contributing their fair share of taxes, according to MOF and IRAS. This initiative follows a similar one in 2023 when the government provided a one-off 60 per cent rebate for all owner-occupied properties.
| PROPERTY TYPE | ONE-OFF TAX REBATE |
| 1 to 2-room flat | 100% |
| 3-room flat | 70% |
| 4-room flat | 50% |
| 5-room flat | 40% |
| Executive EA | 30% |
| Private Residential | 15% capped at $1,000 |
The annual values of HDB flats and most private residential properties are slated to increase from January 1, 2024, reflecting the rise in market rents. This adjustment is based on a yearly review of properties' annual values, used to calculate the tax payable by property owners.
The second and final step of the property tax rate increase, announced in Budget 2022, will also take effect in 2024. This will impact non-owner-occupied residential properties and owner-occupied residential properties with an annual value exceeding S$30,000. However, HDB flats occupied by their owners will remain unaffected, continuing to enjoy lower property tax rates than rented-out residential properties.
| Annual Value (S$) | From 2024 (%) |
Property tax payable (S$) 2024 |
2023 (%) |
Property tax payable (S$) 2023 |
|---|---|---|---|---|
| First 30,000 |
12 12 |
3,600 |
11 11 |
3,300 |
| Next 15,000 |
20 20 |
3,000 |
16 16 |
2,400 |
| First 45,000 | 6,600 | 5,700 | ||
| Next 15,000 |
28 28 |
4,200 |
21 21 |
3,150 |
| First 60,000 | 10,800 | 8,850 | ||
| Above 60,000 |
36 36 |
27 27 |
With the rebate, owner-occupiers of one-room and two-room HDB flats will be exempt from paying property tax in 2024. For other HDB flat types, the rebate will automatically offset any property tax payable, resulting in an average tax increase of less than S$3 per month. Similarly, owner-occupiers of private properties will see the rebate automatically deducted from their property tax, with the bottom half experiencing an increase of less than S$15 per month.
In response to the increase in property tax, the government announced a corresponding adjustment in the annual value thresholds used for social support schemes. This includes MediShield Life premium subsidies, aiming to ensure that Singaporeans with greater needs continue to receive support.
IRAS emphasized the importance of property owners paying their property tax for 2024 by January 31. Those facing financial difficulties can approach IRAS to discuss a suitable payment plan before the deadline. The "Apply for payment plan" e-service at myTax Portal allows property owners to appeal for an extended payment period through their Singpass accounts.
Failure to pay or arrange for payment via GIRO instalments by the due date may result in a 5 per cent penalty.
In light of the impending rise in property taxes, the government's proactive measure of introducing a one-off rebate demonstrates its commitment to supporting property owners amidst economic challenges. The tiered system ensures a fair distribution of the rebate, reflecting a progressive approach to property taxation.
As Singaporeans await their property tax bills at the end of December, it is crucial for property owners to be mindful of the payment deadline and explore available avenues for financial assistance if needed.
