Essential Property Tax Information for HDB Flat Owners

Obligation to pay tax, calculating the tax payable, tax rates applicable, payment of property tax, and tax implications when you sublet or sell your flat.

Property Tax 2017

The Inland Revenue Authority of Singapore (IRAS) reviews the Annual Values (AVs) of properties - including HDB flats - each year. Property tax payable on HDB flats is calculated by applying the relevant set of property tax rates on their AVs. The concessionary ' Owner-Occupier Residential Tax Rates' is applied on most flats while the ' Residential Tax Rates' is applied on non-owner-occupied flats.

Details of the 2017 property tax payable for HDB flat owner-occupiers is as below:

 HDB Flat Type 2017 Property Tax Payable
1-and 2-Room Flat$0
3-Room Flat$0 - $18.40
4-Room Flat$52.00 - $100.00
5-Room Flat$83.20 - $131.20
Executive Flat1$95.20 - $143.20

1 This does not include Executive Condominiums.

Reduction of Annual Values

IRAS assesses HDB flats by analysing the recent rents of the various room types. The rental data are available from the e-Stamping records. Generally, the bigger room types command higher rents than the smaller room types within the same location. HDB flats in central locations also command higher rents than flats located in outlying locations. The AVs would have reflected the differences in the property location as well as the room types. 

For guidance on median rents achievable for your estate, please refer to the HDB website

For more information, please refer to the Frequently Asked Questions for 2017 Revision of HDB Annual Values (60KB).

Obligation to Pay Tax

Property tax is a tax on ownership of property, irrespective of whether the property is occupied or vacant.  It is different from Income Tax, which applies to the rental income earned from renting out the property.

To encourage home ownership, owner-occupied HDB flats are taxed at substantially lower owner-occupier tax rates.

IRAS will bill the owners in the months of Nov and Dec for property tax in the ensuing year. Please ensure that the yearly property tax is paid by 31 Jan.

Within a year of taking possession of your flat, IRAS will send you a Valuation Notice notifying you of the proposed Annual Value (AV) of your flat, and your first Property Tax Bill showing you the amount of property tax payable from the date of possession.

You are to pay your tax within 30 days of the Bill. Please see Payment of Property Tax for details on how to pay.

Within a year of the Temporary Occupation Permit (TOP) date, IRAS will send you a Valuation Notice to notify you of the proposed Annual Value (AV) of your flat, and your first Property Tax Bill showing the amount of property tax payable from the date of issuance of TOP. You are to pay your tax within 30 days of the Bill.

The apportionment of property tax liabilities during property transfer is a private arrangement between the developer/vendor and the purchaser. You may wish to approach the developer based on the terms of your contract.

 

Amount of Property Tax Payable

The property tax is calculated by multiplying the Annual Value (AV) of the property with the prevailing property tax rate .

  • Property Tax Rates

If you live in your flat, your flat will be taxed at the substantially lower owner-occupier tax rates . For owner-occupied HDB flats, you need not pay tax on the first $8,000 of the AV from 2014. The remaining AV will be taxed at the lowest tier of 4%.

Non-owner-occupied HDB flats are taxed at 10% of their AVs as their AVs do not exceed $30,000.

Owner-OccupiedNon-Owner Occupied  
AV and Tax RatesTax PayableAV and Tax RatesTax Payable  
First $8,000
@0%
$0First $10,140@10%$1,014.00  
Next $2,140
@4%
$85.60  
Tax Payable$85.60Tax Payable$1,014.00  
  • Annual Value

IRAS assesses HDB flats by analysing the recent rental rates of the various room types. The data for rental rates is available from the e-stamping records.

Generally, bigger room types command higher rental rates than the smaller room types within the same location. HDB flats in central locations also command higher rental rates compared to flats located in outlying locations. The AVs would have reflected the differences in the property location as well as the room types.

For guidance on average rental rates achievable for your estate, please refer to the HDB website.

Temporary Extension of Stay

HDB has a policy to allow sellers to extend their stay for a default period of 3 months after the sale of the flat to the new owner. If you have agreed to this arrangement with the seller, you would have been informed by HDB that you must pay property tax at Residential Tax Rate (10% of your AV) for the 3 months. Owner-occupier tax rates will not be applied on your flat for the extension period because you are not staying in the flat. This is stated in the HDB Terms and Condition and the Letter of Acceptance and Indemnity when you applied for the temporary extension of stay.  

After the 3 months extension of stay is over, owner-occupier rates will automatically apply. Owners need not write in to IRAS to request owner-occupier rates. 

You will be responsible for the payment of property tax as the new owner of the flat from the date of transfer. Property Tax will be based on 10% of the Annual Value of the flat during the 3 months extension stay period and at owner-occupier tax rates thereafter. You need not apply for the owner-occupier tax rates.

Please refer to the examples on property tax payable:

PeriodAV and Tax Rates

Amount Payable

Extension Period:

1 Jul 2016 - 30 Sep 2016
First $9,240@10% = $231.00

Owner-Occupied:

1 Oct 2016 - 31 Dec 2016
 
First $8,000@0% = $0.00
 Next $1,240@4% = $12.40 
Total Property Tax Payable by Buyer   = $243.40 
Increase in Property Tax Payable due to Extension of Stay= $218.60
PeriodAV and Tax RatesAmount Payable

Extension Period:

1 Aug 2016 - 31 Oct 2016
First $11,340@10% = $283.50

Owner-Occupied:

1 Nov 2016 - 31 Dec 2016
 
First $8,000@0% = $0.00
 Next $3,340@4% = $22.27 
Total Property Tax Payable by Buyer  = $305.77
Increase in Property Tax Payable due to Extension of Stay= $250.10
PeriodAV and Tax RatesAmount Payable

Extension Period:

1 Aug 2016 - 31 Oct 2016
First $12,240@10% = $306.00

Owner-Occupied:

1 Nov 2016 - 31 Dec 2016
 
First $8,000@0% = $0.00
 Next $4,240@4% = $28.27 
Total Property Tax Payable by Buyer  = $334.27
Increase in Property Tax Payable due to Extension of Stay= $263.60

If you have the AV of your flat and wish to calculate the tax payable, please follow the steps below:

1. Please launch the HDB tax calculator.
2. Input the Annual Value of your property.
3. Select the extension of stay period.
4. Change the occupancy status from “Owner-Occupied” to “Let-out”.

Early Termination of the Temporary Extension of Stay

For all applications for extension of stay, HDB will give the maximum period of 3 months from the date of completion of the resale. Should the seller terminate their extension of stay early, you are required to update HDB by logging in to My HDBPage with your Singpass within 7 days of the termination. Once you have updated or notified the HDB branch, HDB will transmit the information to IRAS. No further action is required from you and IRAS will notify you of the tax adjustments in the following month.

Please refer to the examples on property tax payable:

PeriodAV and Tax Rates

Amount Payable

Initial 3 months extension stay period:
1 Jul 2016 - 30 Sep 2016

First $9,240@10% = $231.00
Total Property Tax Payable by Buyer 
(before notification of the early termination of extension)
   
= $231.00
     

Actual Extension Stay Period:
1 Jul 2016 - 1 Aug 2016

First $9,240 @ 10%= $79.48
Owner-Occupied:
2 Aug 2016 - 30 Sep 2016 
 First $8,000 @ 0% = $0.00 
   Next $1,240 @ 4% = $8.13

Total Property Tax Payable by Buyer 

(after notification of the early termination of extension)

 = $87.61
 
Total Amount of Property Tax Credit to the Buyer= -$143.39
*The buyer will start to occupy the HDB flat from 2 Aug 2016

Payment of Property Tax

For the yearly Property Tax Bill sent in the months of Nov and Dec, the due date for payment is 31 Jan of the ensuing year.

For all other Property Tax bills/notices, the bill is payable within 30 days of the bill/notice.

To avoid missing payment due dates, we encourage you to pay your property tax by GIRO . You can choose to enjoy up to 12 monthly interest-free instalments or a one-time GIRO deduction for small tax amounts. Alternatively, here are other available modes of payment .

Late Payment of Property Tax

Property tax is a tax on property ownership and cannot be waived regardless of the financial circumstances of its owner. Owners facing difficulty in making payment by the due date should seek early assistance from IRAS at 1800-3568300 or email propertytax@iras.gov.sg to work out a suitable payment plan with our officers.

Late payment will attract a 5% late payment penalty .

Subletting Your HDB Flat or Rooms

Please ensure that your tenant e-Stamps the rental agreement (including rental of rooms). You can request for a copy of the stamp certificate from your tenant to ensure that the rental agreement has been stamped. IRAS will be notified of the rental and you need NOT inform IRAS separately.

  • Subletting the Entire Flat

When the entire flat is sublet, you will need to pay higher property tax. This is because the owner-occupier tax rates will be withdrawn from the date of letting. Your flat will be taxed at the residential tax rate of 10%.

When the lease has ended, you do not need to notify IRAS if you intend to sublet the entire flat to someone else. However, if you intend to re-occupy the flat, you can apply for the lower owner-occupier tax rates from the date you move in.

To apply, please log in to mytax.iras.gov.sg with your SingPass > Property > Apply for owner-occupier tax rates.

  • Subletting Rooms

When you sublet some of your rooms while still owner-occupying the flat, you will continue to pay property tax at the owner-occupier tax rates. Please ensure that your tenant/agent stamps the rental agreement as "partially let" instead of "wholly let" so that the owner-occupier tax rates will not be withdrawn.

If the owner-occupier tax rates have inadvertently been withdrawn, please apply for the reinstatement of your owner-occupier tax rates by writing to IRAS to:

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

Selling Your Flat

  • Apportionment of Tax

HDB will notify IRAS of the transfer of the HDB flat. HDB officers or your lawyer/agent would usually assist you in apportioning the tax amount and seeking reimbursement from the buyer. IRAS does not apportion nor arbitrate property tax liabilities between the parties.

  • Termination of GIRO

If you are on GIRO arrangement, please arrange to pay the property tax in full at least one week before the completion date. There will be no further GIRO deduction once you have settled the full payment. You can check on your outstanding amount and arrange for payment by logging in to mytax.iras.gov.sg with your SingPass > Account > Pay your Tax Online.

All GIRO arrangements will be automatically terminated after IRAS has been notified by HDB on your property transfer. You are NOT required to inform IRAS separately about the termination.

  • How do I inform IRAS after I have purchased a property?

    For HDB flat owners, you do not have to inform IRAS. HDB will inform IRAS on the change of ownership.

    For other property owners, when any property is sold or transferred, the seller or transferor shall, give notice of the sale or transfer to IRAS within one month. Generally, the lawyers acting on behalf of the seller/transferor will submit the Notice of Transfer via e-Notice of Transfer to IRAS.

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