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Property Tax
Understand how you're taxed
What is property tax?
Property tax is an asset tax (levied on property ownership). It is thus levied on the ownership of properties, irrespective of whether the property is occupied or vacant.
How much you’re being taxed depends on the Annual Value of your property, which is the estimated gross annual rent, assuming the property is rented out at market value.
You pay progressive tax rate for your property ie. you pay less if your property annual value is lower. See the tables below with the progressive rate that gets higher.
Owner occupied or not?
If you stay in your property, you will pay a lower tax rate under owner-occupied rate.
On the other hand, if you rent out the whole property, you will have to pay a higher tax rate. Basically government tax you more for being an investor with multiple properties.
Married couple with 2 homes
If you have decoupled and have 2 homes under each of your name, you might think you can be an occupier in each house. However, IRAS can clearly stated the concession can only be applied to 1 home.
Please note that even if a married couple were to occupy two homes, the owner-occupier tax rates can only apply to one of the homes. This is regardless of whether it is owned jointly or separately by the spouses.
Owner-occupied Rate
| Annual Value | Tax Rate |
|---|---|
| 1st $8k | nothing |
| Next $22k | 4% |
| Next $10k | 6% |
| Next $15k | 10% |
| Next $15k | 14% |
| Next $15k | 20% |
| Next $15k | 26% |
| Exceeds $100k | 32% |
For 2025, the tax tiers have being lowered:
| Annual Value 2025 (NEW) | Tax Rate |
|---|---|
| 1st $12k | nothing |
| Next $28k | 4% |
| Next $10k | 6% |
| Next $25k | 10% |
| Next $10k | 14% |
| Next $15k | 20% |
| Next $40k | 26% |
| Exceeds $140k | 32% |
Non-owner-occupied Rate
| Annual Value | Tax Rate |
|---|---|
| 1st $30k | 12% |
| Next $15k | 20% |
| Next $15k | 28% |
| Exceeds $60k | 36% |
Commercial and industrial properties
Non-residential properties such as commercial and industrial buildings and land are taxed at a flat 10% of the Annual Value.
When is property tax payable?
Property tax will be send in late Dec, and will have to be paid 1 month later by Jan 31. Taxed annually, paid in advance.
For example, the property tax of 2025 will have the notices be sent in Dec 2024, and has to be paid by 31 Jan 2025.
What if you move in/out of the property?
Property owners must notify IRAS within 15 days.
The penalty for non-compliance of the above obligation is a fine of up to $5,000 and an interest on the tax at such rate as may be prescribed (if any).
You can apply/withdraw Owner-Occupier Tax Rates from IRAS website.