1. Owner-Occupier’s Tax Rates
2. Eligibility and application
3. If you own one or more than one residential properties (Scenarios)
1. Owner-Occupier’s Tax Rates
Prior to 1 Jan 2011
Property tax is payable at 10% of the Annual Value. If you enjoy the owner-occupier's concession, you are taxed at a flat rate of 4% on your residential property.
Example:
• AV of your house is $24,000
• Property Tax payable is: $24,000 X 10% = $ 2,400 per year
If you qualify for the owner-occupier’s tax rate
• Property Tax payable is: $24,000 X 4% = $ 960 per year
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:
| Annual Value ($) |
Tax Rate (%) |
| First 6,000 |
0 |
| Next 59,000 |
4 |
| Amount exceeding 65,000 |
6 |
Computation of Tax Payable from 1 Jan 2011
| Annual Value ($) |
Tax Rate (%) |
Tax Amount ($) |
First 6,000
Next 59,000 |
0
4 |
0
2,360 |
First 65,000
Amount exceeding 65,000 |
-
6 |
2,360 |
Example 1: AV of your house is $9,000
| Property Tax payable is: |
First $6,000 X 0% |
= $ 0 |
| |
Next $3,000 X 4% |
= $120 |
| Tax payable: |
= $120 |
Example 2: AV of your house is $24,000
| Property Tax payable is: |
First $6,000 X 0% |
= $ 0 |
| |
Next $18,000 X 4% |
= $720 |
| Tax payable: |
= $720 |
Example 3: AV of your house is $84,000
| Property Tax payable is: |
First $6,000 X 0% |
= $ 0 |
| |
Next $59,000 X 4% |
= $2,360 |
| |
Remaining $19,000 X 6% |
= $1,140 |
| Tax payable: |
= $3,500 |
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2. Eligibility and application
Who can apply?
Owner-occupier’s tax rates are available to an individual owner or a married couple who lives in his or their residential property. It can be applied to only one residential property at any one time. A residential property owned by a company, association or a body of persons does not qualify for the concession even if its staff lives in its residential property.
Let-out or vacant residential properties will be taxed at 10%.
For Private Residential Property or Executive Condominium owners
If you own and live in a private residential property or executive condominium, you should apply for the owner-occupier’s tax rates.
However, if you are a Singaporean or Singapore Permanent Resident who own and occupy only one private residential property or executive condominium at the point of purchase, you do not need to apply as the owner-occupier’s tax rates will be granted to you automatically. You will be notified of the granting of the concession in the notice “Acknowledgement of Transfer of Property”. This initiative started from 1 Jan 2011. Please inform IRAS within 15 days from the date of the notice if the property is not meant for owner-occupation. Penalty of up to $5,000 will be imposed under Section 19 of the Property Tax Act for non-compliance of the obligation.
For HDB or DBSS owners
For new and resale HDB or DBSS flat owners, you need not apply. The owner-occupier’s tax rates will be automatically granted as you are required to live in your flats.
If you live in the property
If you are renting out rooms of the residential property which you live in, you are still eligible for the owner-occupier’s tax rates. You just need to write to IRAS to:
- confirm that you are currently still living in your property;
- provide the reason(s) for partially renting out your property; and
- submit documentary proof such as copies of tenancy agreements, PUB bills, SC & CC bills, approval letter from HDB on room rentals, etc.
If you have sold the property
If you have already sold the residential property, you cannot apply for owner-occupier’s tax rates for the past periods.
How do I apply?
Please log in to myTax Portal with your SingPass > e-Services for Property Tax > Apply for owner-occupier’s tax rates.
If you have applied for owner-occupier’s tax rates via myTax Portal , you can check the status of your application via the same e-Service.
When will Owner-Occupier’s Tax Rates not apply?
Owner-occupier’s tax rates granted to any residential property owner will be withdrawn from the date you move out of the property, or if you rent out the property. Owners are required to notify IRAS when they move out or rent out the property.
Do I need to re-apply for the Owner-Occupier’s Tax Rates if I move back to my property that was previously let out?
Yes, because you need to provide the date of occupation to IRAS.
What happens if I am late in applying for the Owner-Occupier’s Tax Rates?
Your application cannot be approved for years prior to 1 Jan 2007.
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3. If I own one or more than one residential properties
If you own one residential property at the point of purchase
If you own and live in a private residential property, you need to apply for the owner-occupier’s tax rates.
However, for Singaporean or Singapore Permanent Resident, you do not need to apply as the owner-occupier’s tax rates will be automatically granted. You will be notified of the granting of the concession in the notice “Acknowledgement of Transfer of Property”. This initiative started from 1 Jan 2011. Please inform IRAS within 15 days from the date of the notice if the property is not meant for owner-occupation. Penalty of up to $5,000 will be imposed under Section 19 of the Property Tax Act for non-compliance of the obligation.
For HDB or DBSS flat owners, you need not apply. The owner-occupier’s tax rates will be automatically granted as you are required to live in your flats.
If you own more than one residential properties
An owner is eligible for the owner-occupier’s tax rates to be applied on one property at any one time. Where properties are owned by a married couple whether jointly or separately by either one of them, the owner-occupier’s tax rate can be applied on only one property. The subsequent property/properties will be taxed at 10%.
Scenario 1: If you own a HDB flat and recently purchased a private residential property
If you own both a HDB flat and a private residential property, the owner-occupier’s tax rates will automatically apply to the HDB flat. This is because an owner of a HDB flat is required to use it for owner-occupation.
But if you wholly rent out your flat or are in the process of selling your flat to live in your private residential property, the owner-occupier’s tax rates on your flat will be withdrawn from the date of letting/ sale of the HDB flat. You may then apply for the owner-occupier’s tax rates for your private property.
Scenario 2: If you own a private residential property and recently purchased a resale HDB flat
The owner-occupier’s tax rates will be automatically applied to the HDB flat from the date of purchase and will be withdrawn from the private property. This is because an owner of a HDB flat is required to use it for owner-occupation.
In the event you are still staying in the private property before its completion of sale, you may apply for the owner-occupier’s tax rates to be reinstated for the private property. The owner-occupier’s tax rates will be withdrawn from the private residential property and granted to the HDB flat once you have moved into the HDB flat or when the sale of the private property is completed.
Scenario 3: If you own a private residential property (A) and recently purchased another private residential property (B)
The owner-occupier’s tax rates can be given to only one property at any one time. You can apply for the owner-occupier's concession for the private residential property that you are occupying. The other private residential property will be taxed at 10%.
In the event you have moved into the recently purchased private residential property (B), you may apply for the owner-occupier’s tax rates for this property. The owner-occupier's concession applied to your current private residential property (A) will be withdrawn from the date the concession is applied to private residential property (B).
Scenario 4: If you own a residential property (A) and own another residential property (B) with another party other than your spouse (e.g. parents, siblings etc)
Where owners, not being husband and wife, jointly own more than one residential property, the concession may apply to each of the residential properties separately occupied by the joint owners.
Example:
If you occupy residential property (A) and your parents occupy residential property (B), you may apply for the owner-occupier's tax rates to be applied to property (A) and your parents may apply for the concession to be applied on property (B).
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FAQs
Yes. Property tax rate for an owner-occupied residential property is 4% of the Annual Value prior to 2011 while the tax rate for a residential property that is rented out is 10%. From 1 Jan 2011, the owner-occupier’s progressive tax rates of 0%, 4% and 6% apply for AV up to $6,000, the next $59,000, and amount exceeding $65,000 respectively replacing the flat 4% tax rate.
Currently, HDB lessees and private property owners pay 4% owner-occupier's tax rate for owner-occupied residential properties. As long as the owner is still principally occupying the HDB flats and private properties as residences, the 4% owner-occupier's tax rate would continue to apply. From 1 Jan 2011, the owner-occupier's progressive tax rates of 0%, 4% and 6% apply for AV up to $6,000, the next $59,000, and the amount exceeding $65,000 respectively replacing the flat 4% tax rate.