Singapore Property Tax for Homeowners: A Clear Guide
Property tax is a recurring cost that every Singapore homeowner and investor must budget for — yet it is one of the most misunderstood charges in the local property market, often confused with stamp duty or income tax.
What Is Property Tax?
Property tax is an annual tax levied by the Inland Revenue Authority of Singapore (IRAS) on all property owners in Singapore — whether the property is a HDB flat, private condo, executive condo (EC), or landed home. It is not a tax on rental income (that falls under income tax), and it is not a one-off purchase cost like stamp duty.
The tax is based on your property's Annual Value (AV), not its market price. IRAS defines AV as the estimated gross annual rent the property could fetch if it were rented out, excluding furniture, fittings, and maintenance fees. IRAS reviews AVs regularly and adjusts them to reflect prevailing market rental levels, so your AV — and your tax bill — can change from year to year.
If you are still getting to grips with how Singapore property costs layer on top of one another, how to plan your property budget in Singapore is a useful place to start.
Owner-Occupier vs Non-Owner-Occupier Rates
The most important factor determining your property tax bill is whether you live in the property or not.
Owner-occupier rates apply to your principal place of residence — the home you actually live in. Singapore Citizens and Permanent Residents who occupy their own residential property qualify for these preferential rates, which are lower than non-owner-occupier rates across the board.
Non-owner-occupier rates apply when the property is rented out, left vacant, used for business, or held as an investment property. These rates are progressive and meaningfully higher.
Both rate schedules are progressive — the more valuable (higher AV) the property, the higher the marginal rate applied to the upper bands of AV. IRAS publishes the exact rate tables on its website, and these are updated from time to time by the government. Always check the current rates directly with IRAS rather than relying on any fixed figure you may read elsewhere, as the government has adjusted the bands in recent years as part of broader property market measures.
| Situation | Rate Schedule | Indicative Direction |
|---|---|---|
| You live in the property | Owner-occupier (progressive) | Lower, starts near 0% on lower AV bands |
| Rented out / vacant / investment | Non-owner-occupier (progressive) | Higher across all AV bands |
| HDB owner-occupier |
Frequently asked questions
- What is Annual Value (AV) and how does IRAS calculate it for my Singapore property?
- Annual Value (AV) is the estimated gross annual rent your property could earn if rented out, excluding furniture, fittings, and maintenance fees. IRAS determines AV by comparing your property against rental transactions for similar properties in the same area, and reviews it regularly to reflect current market rental levels.
- What is the difference between owner-occupier and non-owner-occupier property tax rates in Singapore?
- Owner-occupier rates apply when you live in the property as your principal residence, and these rates are lower than non-owner-occupier rates. Non-owner-occupier rates apply when the property is rented out, left vacant, or used as an investment, and both schedules are progressive — meaning higher AV bands are taxed at higher marginal rates. Check IRAS for the current rate tables as they are updated periodically.
- Can I use my CPF Ordinary Account (OA) to pay property tax in Singapore?
- No. Property tax in Singapore must be paid in cash — CPF Ordinary Account funds cannot be used for this purpose. Most owners set up a GIRO arrangement with IRAS to pay automatically and avoid late payment penalties.
- Do HDB flat owners have to pay property tax in Singapore?
- Yes, all property owners in Singapore — including HDB flat owners — must pay property tax based on their flat's Annual Value. Owner-occupied HDB flats benefit from the lower owner-occupier rate schedule, which starts at 0% for the lowest AV band, but as AVs rise with rental market movements, the annual bill can increase over time.
- What happens to property tax when I buy or sell a Singapore property?
- Property tax for the calendar year is apportioned between the buyer and seller at the point of completion. Your conveyancing solicitor calculates the split based on the completion date, and the adjustment appears in the completion account — so neither party ends up double-paying or missing the tax for their period of ownership.