Reduced Property Tax for 2025

18 Feb 2024 News

Budget 2024 has a good news for property owners who stay in their property. There is a significant reduction to owner-occupied property, as the recent hike in 2024 has made everyone paid too much towards nation building.

The existing property tax regime was introduced in Budget 2022, with rates raised for owners of investment properties and higher value owner-occupied private properties.
The changes were expected to affect mainly the top 7 per cent of owner-occupied properties. However, the sharp rise in market rents and AVs from 2022 resulted in 13 per cent of homeowners being affected, Finance Minister Lawrence Wong noted in his Budget speech.

Taking into account of the increase in Annual Value in the past few years, the progressive tax tiers has thus been adjusted.

Annual Value 2024 Annual Value 2025 (NEW) Tax Rate
1st $8k 1st $12k nothing
Next $22k Next $28k 4%
Next $10k Next $10k 6%
Next $15k Next $25k 10%
Next $15k Next $10k 14%
Next $15k Next $15k 20%
Next $15k Next $40k 26%
Exceeds $100k Exceeds $140k 32%

Concrete Example

As usual, we will compare with a few Annual Values. A HDB 3-rm will be ~$30k, HDB 5-rm ~$45k, private 5-br ~$60k and a luxury private ~$120k.

Annual Value $30k $45k $60k $120k
Owner-occupied 2023 $820 $1,670 $2,870 $13,270
Owner-occupied 2024 $880 $1,980 $3,680 $18,380
Owner-occupied 2025 (NEW) $720 $1,420 $2,720 $13,820

In most cases, the new property tax for 2025 is even lower than 2023!

Thatโ€™s a relief for owners with 1 property.

What about non-owner occupied?

No change. Government see no needs to help investors.