Property tax rates on owner-occupied and non-owner-occupied residential properties are applied on a progressive scale. All other properties are taxed at 10% of the Annual Value.

Property tax formula

Annual property tax is calculated by multiplying the Annual Value (AV) of the property with the Property Tax Rates that apply to you.

For example, if the AV of your property is $30,000 and your tax rate is 10%, you would pay $30,000 x 10% = $3,000 in property taxes.

Owner-occupier tax rates (residential properties)

Owner-occupied residential properties are condominiums, HDB flats or other residential properties where the owner lives in ("occupies") the property. Owner-occupied residential properties enjoy owner-occupier tax rates.

Owner-occupier tax rates

Annual Value ($)Effective 1 Jan 2015Property Tax Payable

First $8,000
Next $47,000

0%
4%

$0
$1,880

First $55,000
Next $15,000

-
6%

$1,880
$   900

First $70,000
Next $15,000

-
8%

$2,780
$1,200

First $85,000
Next $15,000

-
10%

$3,980
$1,500

First $100,000
Next $15,000

-
12%

$5,480
$1,800

First $115,000
Next $15,000

-
14%

$7,280
$2,100

First $130,000
Above $130,000

-
16%

$9,380

Example 1: AV of Residential Property is $36,000

Annual Value ($)Tax rate effective 2015Property tax payable

First 8,000

X 0%

= 0

Next 28,000

X 4%

= $1,120

Property tax payable = $1,120

Example 2: AV of Residential Property is $84,000

Annual Value ($)Tax rate effective 2015Property tax payable
First 8,000X 0%= 0
Next 47,000X 4%= $1,880
Next 15,000X 6%= $ 900
Remaining 14,000X 8%= $1,120

Property tax payable = $3,900

Non-owner-occupier residential tax rates (residential properties)

Non-owner occupied residential properties are condominiums, HDB flats or other residential properties that the owner does not live in ("occupy"). Hence, owner-occupier tax rates do not apply.

The following tax rates apply to non-owner occupied properties except for those in the exclusion list.

Non-owner-occupier residential tax rates

Annual Value ($)Effective 1 Jan 2015Property Tax Payable

First 30,000
Next $15,000

10%
12%

$3,000
$1,800

First $45,000
Next $15,000

-
14%

$4,800
$2,100

First $60,000
Next $15,000

-
16%

$6,900
$2,400

First $75,000
Next $15,000

-
18%

$9,300
$2,700

First $90,000
Above $90,000

-
20%

$12,000

Excluded properties

  1. Accommodation facilities within any sports and recreational club
  2. Chalet
  3. Child care centre, student care centre, or kindergarten
  4. Welfare home
  5. Hospital, hospice, or place for rehabilitation, convalescence, nursing care or similar purposes
  6. Hotel, backpackers' hostel, boarding house or guest house
  7. Serviced apartment
  8. Staff quarters that are part of any property exempted from tax under S6(6) of the Property Tax Act
  9. Student's boarding house or hostel
  10. Workers' dormitory

The property must have received planning approval for the above use. No application to IRAS is required.

Commercial and industrial properties (Non-Residential)

Non-residential properties such as commercial and industrial buildings and land are taxed at 10% of the Annual Value. Owner-occupier tax rates do not apply to non-residential properties even if you have bought the properties for your own use/occupation.

Example 3: AV of Commercial Property is $54,000

Annual Value ($)Tax rateProperty tax payable

54,000

X 10%

= $5,400

Property tax payable = $5,400

FAQs

Knowing my tax rates

If I own and occupy more than one residential property, what will be the tax rate?

The owner-occupier tax rates are only granted to one property owned and occupied by you. For subsequent properties, you will be taxed at non-owner-occupier residential tax rates even if you are occupying it as your second home.

How do I know if my residential property is taxed at owner-occupier tax rates or non-owner-occupier residential tax rates?

From your property tax notice and bill, the tax rate applied on the property is indicated in brackets as [Owner-Occupier Tax Rates] or [Non-owner-occupier Residential Tax Rates] under the “AV and Tax Rates” Column.

Alternatively, you can log in to mytax.iras.gov.sg with your Singpass > Property > View Property Dashboard.

Tax rates based on use of my property

What is my tax rate if my residential property is used as a home office?

The property may qualify for the property tax rates for residential properties as it is used primarily for residential purposes. However, you must satisfy the terms and conditions set out by URA or HDB for the home office scheme

What is my tax rate if my residential property is used as a childcare centre?

For landed houses used as childcare centres, approval for change of use must be obtained from URA. The tax rate is 10%.

What rates will apply for shophouses or shopflats with 2 distinct and demarcated uses?

The residential component will be subject to the property tax rates for residential properties while the commercial component will continue to be taxed at 10%.

Do I have to inform IRAS when I change the use of my residential property to non-residential?

Yes, you have to notify IRAS in writing within 15 days from the date of the change.

Do I have to pay property tax on my vacant property?

Yes. Property tax is a tax on property ownership and applies whether the property is rented out, owner-occupied or vacant. It is different from income tax which is levied on the rental income earned from renting out the property. Hence, all property owners would have to pay property tax on their properties regardless whether it is occupied or not.

What are the applicable property tax rates for vacant properties?

Vacant residential property will be taxed at the non-owner-occupier residential tax rates while vacant non-residential property will be taxed at 10% of the Annual Value. There is no tax relief/concession for vacant properties.

Progressivity of tax rates

Why are property tax rates higher for let-out residential properties?

Let-out or rented residential properties are considered investment assets and are taxed at a higher rate than owner-occupied properties. The tax structure ensures that higher-value properties are subject to higher tax rates.

I inherited my property and it has a very high AV. I am staying in my property and do not generate rental income from it. I am just a regular salaried worker and do not intend to sell my property. Why do I need to pay higher property tax?

As opposed to income tax, which taxes the income received by a person, property tax is a wealth tax. It is not a tax on rental income. It is thus levied based on the value of your property, which represents part of your overall wealth. However, to encourage home ownership, you will enjoy a lower tax rate for owner-occupied residential properties.