Concessionary Property Tax Rates for Owner-Occupied Residential Properties

1. Owner-Occupier Tax Rates 
2. Eligibility and application 

1. Owner-Occupier Tax Rates

Property tax is payable at 10% of the Annual Value (AV) regardless of whether  the property is let out, vacant or occupied. Owner occupiers of residential properties may pay concessionary owner-occupier tax rates based on the Annual Values (AVs) of your building as follows:

Computation of Tax Payable

Example 1: AV of your house is $9,000

Example 2: AV of your house is $24,000

Example 3: AV of your house is $84,000

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) 

• lIlustrations of property tax computations for Non-Owner-Occupied Residential Buildings (64KB)

B) Progressive Tax Rates for Owner-Occupied Homes  

• lIlustrations of property tax computations for Owner-Occupied Homes (84KB)

2. Eligibility and application

A) Who can apply?

The concessionary tax rates can only be applied to one home owned and occupied by an individual or a married couple.  If a married couple were to owner-occupy two homes even though each home is separately owned by each individual and not jointly owned by the couple, the owner-occupier tax rates can only apply to one of the homes.

Only current owners can apply. If you have already sold your property, you can no longer apply.

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. The owner-occupier tax rates do not apply to non-residential properties or land even if you have bought the properties for your own use/ occupation.

If you and/ or your spouse own more than one home

• If you own both a HDB flat and a private residential property, the owner-occupier 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.
  
• If you wholly rent out your flat and you live in your private residential property, you can apply the concessionary tax rate to your private residential property. The concessionary tax rate will be withdrawn from the date you moved out of your flat or the date of letting, whichever is earlier.
• If you are in the process of selling your flat and have shifted to your private property, you may also apply for the concession to be applied to your private residential property. However, if your HDB flat has been sold, the concession can only be applied to your private property one day after the sale of the HDB flat.
• If you own a private property (A) and have recently purchased another private property (B), you may choose for the owner-occupier tax rates to be applied to property (B) if you have occupied it. The concession on property (A) will be withdrawn from the date you enjoy the owner-occupier tax rates on property (B).
  

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.
• If you occupy residential property (A) and your parents occupy residential property (B), you may apply for the owner-occupier tax rates to be applied to property (A) and your parents may apply for the concession to be applied on property (B).

For HDB or DBSS owners

If you buy a new or resale HDB or DBSS flat, you need not apply for the owner-occupier tax rates as this would automatically apply to your flat as you are required to live in it.

For Private Residential Property (include Executive Condominium)

From 1 Jan 2011, if you buy your first private residential property and do not owner-occupy another home, the owner-occupier tax rates may automatically apply to your private residential property. But if you do not intend to owner-occupy the property, you should inform IRAS immediately, so as to avoid any penalty for late or non-notification.

If you are eligible for the owner-occupier tax rates, but have not been granted owner-occupier tax rates automatically, you may apply for the owner-occupier tax rates. 

For partially let homes 

If you partially let out your home while still owner-occupying it, you are still eligible for the owner-occupier tax rates. If the owner-occupier tax rates are withdrawn, you may apply for the reinstatement of your owner-occupier tax rates by writing to IRAS to:  

• confirm that you are still living in your property; and
• submit copy of tenancy agreement and/ or approval letter from HDB on room rentals (if any).

B) How do I apply?

Please log in to myTax Portal with your SingPass  > Apply for owner-occupier tax rates (left-hand menu).

If you have applied for owner-occupier tax rates via myTax Portal , you can check the status of your application via the same e-Service.

C) When will Owner-Occupier Tax Rates cease to apply?

Owner-occupier tax rates will be withdrawn if you move out of the property, or if you rent out the property wholly. You need to notify IRAS when you move out or rent out the property.

D) Do I need to re-apply for the Owner-Occupier Tax Rates if I move back to my property that was previously let out?

Yes, you need to let us know the date you move in so that the owner-occupier tax rates can be reinstated from that date.  

FAQs