Reduced Property Tax for 2025
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!
That’s a relief for owners with 1 property.
What about non-owner occupied?
No change. Government see no needs to help investors.
