1. Before the Transfer of Property
A) Check on outstanding property tax
Once the property is transferred to you, you will be liable for any outstanding property tax including arrears that should have been paid by the previous owner. Thus, it is important for your HDB officer or lawyer to check with IRAS on any outstanding property tax.
For newly constructed HDB flats, IRAS will bill you for the property tax that starts from the date you take possession of the flat.
B) Apportion property tax between you and the seller
If there is an outstanding tax amount, your HDB officer or lawyer will assist you to settle the outstanding amount with the seller. Your HDB officer or lawyer will also apportion the current year tax between the seller and yourself. IRAS does not apportion property tax liabilities between the parties.
C) 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.
For correspondence and payment, IRAS communicates with the owner who is the main applicant listed in the purchase of the flat. If there is a preference among owners on who IRAS should correspond with, please ensure that you are registered as the main applicant.
2. After the Transfer of Property
Once HDB has notified IRAS of the transfer, the record of ownership will be updated for property tax purposes.
A) Update your address
IRAS sends the property tax bill or notice to the address listed on your identity card. To receive all your correspondence promptly, please ensure that your address is updated. Please see change mailing address if you need to update your address.
B) Automatic Application of Owner-Occupier Tax Rates
Owners who live in their homes enjoy lower property tax rates. You do not need to apply for the owner-occupier tax rates as it will be automatically applied. For more details, please refer to Lower Property Tax Rates for Owner Occupied Residential Properties.
C) Calculate your Property Tax
To calculate the annual property tax payable, multiply the Annual Value (AV) of the property with the set of Property Tax Rates that applies to you. You can use this calculator to calculate your tax payable.
D) Arrange to pay your Property Tax
You are encouraged to pay your property tax by GIRO to enjoy up to 12 interest-free monthly instalments.
Alternatively, you can opt for one-time GIRO deductions or use any of the modes of payment available to pay your property tax.
3. Other Taxes Relating to Property
A) Stamp Duty
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.
B) Income Tax from Rental
Rent received from fully or partially renting out your flat is subject to income tax. Find out more on Income from property rented out.