The Inland Revenue Authority of Singapore (IRAS) will be revising the Annual Values (AVs) of HDB flats upwards by 4% to 6% with effect from 1 January 2022, in line with the increase in market rentals. The AV revision is part of IRAS’ annual review of properties to compute the property tax payable. With the revision in AVs, all one-room and two-room owner-occupiers and 1 in 3 three-room owner occupiers of HDB flats will continue to pay no property tax. About 65% of three-room owner occupiers will each pay between $8 and $14 more annually, while the four-room, five-room and Executive flats owner-occupiers will each pay between $21 and $26 more annually for property tax in 2022.
IRAS monitors market rental trends to determine annual values of properties
The AV is the estimated annual rent of the property if it were to be rented out and it is determined based on the market rents of comparable properties. The AVs of HDB flats had remained unchanged since its last revision in 2017. However, with the rising market rents of HDB flats in 2021, the AVs of all HDB flats will need to be revised upwards from 1 January 2022. HDB flat owners may refer to HDB’s website for more information on median rents of HDB flats.
Similarly, IRAS reviews the AVs of private residential properties annually. Private residential property owners will also see an increase in their AVs in 2022.
2022 property tax payable for HDB flat owners
The property tax payable is derived by multiplying the property tax rate with the AV of the property. Owner-occupiers enjoy concessionary property tax rates ranging between 0% and 16%, while the property tax rates for those who rented out their flats range between 10% and 20%. The tax rates are progressive, with higher value properties being taxed at higher rates. Please see Annex A for the property tax rates.
The applicable tax rates for HDB flats are up to 4% for owner-occupied flats and 10% for non-owner-occupied flats. The 2022 property tax payable for HDB flat owner-occupiers is summarised below:
|HDB Flat Type||2022 Property Tax Payable||Increase in Annual Tax Payable from 2021|
|1- and 2-Room Flat||
$0 - $32.80
|$8.80 - $14.40|
|4-Room Flat||$73.60 - $121.60||$21.60|
|5-Room Flat||$107.20 - $155.20||$24.00|
Executive Flat 1
|$121.60 - $169.60||$26.40|
Owners with financial difficulties to approach IRAS on payment plan before 31 Jan 2022
All property owners will receive their property tax bills by end December 2021. IRAS would like to remind all property owners to pay their 2022 property tax by 31 January 2022.
There will be a 5% penalty imposed for property owners who fail to pay or have not arranged to pay their tax via GIRO instalments by the due date. IRAS encourages property owners to join GIRO to enjoy up to 12 interest-free monthly instalments or opt for a one-time deduction. Taxpayers who have bank accounts with DBS/POSB, UOB or OCBC can apply for GIRO via Internet Banking and receive instant approval.
Property owners facing financial difficulties may approach IRAS for assistance to discuss a suitable payment plan before 31 January 2022. Property owners can appeal for a longer payment plan via the ‘Apply for Payment Plan’ e-Service at myTax Portal using your Singpass or Singpass Foreign user Account (SFA). Property owners may also contact IRAS at 1800 356 8300.
More information on 2022 property tax bills can be found on IRAS website.
Inland Revenue Authority of Singapore
1 This does not include Executive Condominiums.