Pointers for Buyers of New HDB Flats (from HDB)
1. Future Property Tax Liability
2. Notify Change of Ownership
3. Property Tax Assessment
4. Payment Arrangement
5. Other Taxes on Property
1. Future Property Tax Liability
If you are buying a property that is under construction or newly completed and hence not assessed for property tax yet, you may be billed for the property tax that starts from the date you take possession of the flat. This is usually within one year from the date you take possession of the flat.
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2. Notify Change of Ownership
HDB will notify IRAS of the transfer of the HDB flat. You need not notify IRAS. IRAS will update the ownership record for property tax purpose based on the information given.
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3. Property Tax Assessment
Property Tax is a tax on property, and is payable by the owner whether or not the property is owner-occupied, rented out or vacant. It is unlike income tax which is levied only when owners derive rental income from properties.
You need not pay property tax on the new flat during the period of construction. Property tax for a new flat begins from the date you take possession of the flat. IRAS will send you a Valuation Notice with a proposed Annual Value (AV). You will be billed on the property tax for the flat from the date of possession.
How is Property Tax calculated?
Property Tax is calculated based on a percentage (Tax rate) of the AV of your flat.
Owner-occupied flats will be granted owner-occupier tax rates automatically (i.e. you need not apply). The owner-occupier tax rates will be withdrawn if you rent out the entire flat or cease to occupy the flat. Non-owner-occupied flats are taxed at 10%.
The owner-occupier tax rates based on the Annual Values (AVs) of your building are as follows:
| Annual Value ($) |
Tax Rate (%) |
| First 6,000 |
0 |
| Next 59,000 |
4 |
| Amount exceeding 65,000 |
6 |
Example 1: AV of your house is $6,000
| Property Tax payable is: |
First $6,000 X 0% |
= $0 |
| Tax payable: |
= $0 |
Example 2: AV of your house is $7,200
| Property Tax payable is: |
First $6,000 X 0% |
= $ 0 |
|
Next $1,200 X 4% |
= $48 |
| Tax payable: |
= $48 |
New! Budget 2013 Changes
The Government announced the introduction of progressive tax rates for all residential properties from 1 Jan 2014 and 1 Jan 2015. See revised rates below.
A) Progressive Tax Rates for Residential Properties (Exclude residential land)
|
Progressive Tax Rates |
| Annual Value($) |
Effective 1 Jan 2014 |
Effective 1 Jan 2015 |
| First 30,000 |
10% |
10% |
| Next 15,000 |
11% |
12% |
| Next 15,000 |
13% |
14% |
| Next 15,000 |
15% |
16% |
| Next 15,000 |
17% |
18% |
| AV in excess of $90,000 |
19% |
20% |
B) Progressive Tax Rates for Owner-Occupied Homes
|
Progressive Tax Rates |
| Annual Value($) |
Effective 1 Jan 2014 |
Effective 1 Jan 2015 |
First 8,000
|
0% |
0% |
| Next 47,000 |
4% |
4% |
| Next 5,000 |
5% |
6% |
| Next 10,000 |
6% |
6% |
| Next 15,000 |
7% |
8% |
| Next 15,000 |
9% |
10% |
| Next 15,000 |
11% |
12% |
| Next 15,000 |
13% |
14% |
| AV in excess of $130,000 |
15% |
16% |
4. Payment Arrangement
We encourage you to pay your property tax by GIRO as you will enjoy up to 12 interest-free monthly instalments. Alternatively, you may check out the other available modes of payment.
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5. Other Taxes on Property
Rent received from the letting of property in Singapore is subject to income tax. Find out more on Rent & Net Annual Value (NAV).
When you buy any property, you need to pay Stamp Duty within 14 days of the date of contract/agreement. HDB has been authorised by IRAS to collect stamp duty on its behalf.
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FAQs
For HDB flat owners, HDB will inform IRAS on the change of ownership, thus you do not have to inform IRAS separately.
For other property owners, when any property is sold or transferred, the seller or transferor shall, within one month after the sale or transfer, give notice of the sale or transfer to IRAS.
Generally, the lawyers acting on behalf of the seller/transferor will submit the Notice of Transfer via e-Notice of Transfer to IRAS.