Property tax will increase next year in 2023 after Inland Revenue Authority of Singapore (IRAS) conducted a review on properties' annual values.

HDB flats and private residential properties will be affected. 

The annual value of a property is the estimated rent that could be collected annually if it were to be rented out, excluding furniture, furnishings and maintenance fees.

To determine the annual value (AV) of your property, IRAS relied on the market rentals of similar or comparable properties within your development.

The property tax payable is derived by multiplying the property tax rate with the annual value of the house.

To cushion the impact of the tax increase, the Government will provide a one-time 60 per cent property tax rebate for all owner-occupied properties, up to a maximum of S$60. It will be used to offset against any property tax payable in 2023.

One- and two-room HDB owner-occupiers need not pay property tax as their annual values remain below S$8,000.

Most of the owner-occupiers in other HDB flat types will pay between S$30 and S$70 more in property tax compared to 2022, after factoring the Government rebate.

The market rents of HDB flats and private residential properties have rallied by more than 20 per cent since the last revision of annual values in January 2022, MOF and IRAS said.

Hence the residential property annual values will be revised accordingly from 1 January 2023, to reflect this.

You will receive your property tax bills by the end of December and you must pay property taxes by 31 Jan 2023.

Owners of higher value properties and non-owner occupier properties will see a larger tax bill, in line with revised rates announced in Budget 2022.

Changes were made to put in place a more progressive structure, with higher value and non-owner-occupied residential properties being taxed at higher rates.

Assuming annual values (AV) increase by 20 per cent in line with residential rentals, non-owner occupiers holding properties with a current AV of S$30,000 would have an AV of S$36,000 in 2023. Their property taxes payable will rise by S$1,260 or 42 per cent next year. 

ERA Realty Network associate division director, Andy Chia, highlighted that he has successfully helped his clients whom are landlords to secure rental leases at record breaking prices in the various private condominiums.

“A three-bedroom condo unit in Geylang has been rented out for $5,500 per month,” he said. 

IRAS welcome property owners who face financial difficulties to approach them for assistance before the end of  January 2023.

Your eligibility for social support schemes such as the GST Voucher scheme, MediShield Life premium subsidies and the Workfare Income Supplement Scheme will not be affected by the revision of annual values.