HDB flats (From HDB)

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’s tax rates automatically (i.e. you need not apply).  The owner-occupier’s tax rates will be withdrawn if you rent out the entire flat or cease to occupy the flat.  Prior to 1 Jan 2011, the tax rate was a flat rate of 4%. Non-owner-occupied flats are taxed at 10%.

Owner-Occupier’s Tax Rates with Effect from 1 Jan 2011

In Budget 2010, the Government announced a shift from the current system of a flat 4% property tax rate for all owner-occupied residential properties to progressive owner-occupier’s tax rates based on the Annual Values (AVs) of your property as follows:

Example 1: AV of your house is $6,000

Example 2: AV of your house is $7,200

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.

FAQs