The annual values of HDB flats and most private residential properties will increase with effect from Jan 1, 2024 to reflect the rise in market rents, said MOF and IRAS.
As announced in Budget 2022, the second and final step of the property tax rate increase will also take effect then. This will affect only non-owner-occupied residential properties, as well as owner-occupied residential properties with an annual value of more than S$30,000.
HDB flats that are occupied by their owners will not be affected. Owner-occupied residential properties will continue to have lower property tax rates than residential properties which are rented out, said MOF and IRAS.
A property’s annual value is the estimated gross annual rent if it were to be rented out – excluding furniture, furnishings and maintenance fees.
Annual value is calculated based on market rentals of similar or comparable properties, not on the actual rental income received.
Property size, the condition of the property, location and other relevant physical attributes are also taken into account when determining annual values.
WHAT IS THE TAX PAYABLE?
With the rebate, owner-occupiers of one-room and two-room HDB flats will continue not having to pay property tax in 2024, said MOF and IRAS.
For owner-occupiers in other HDB flat types, the rebate will be automatically offset against any property tax payable, with an average tax increase of less than S$3 per month in 2024.