Property taxes for most home owners will go up in 2024 because of higher market rents and annual values for most residential properties, as well as an increase in property tax rates for higher-value private homes.
But the Government will provide a one-off rebate of up to 100 per cent for all owner-occupied homes to help cushion the impact of the tax increase amid cost-of-living concerns, the Ministry of Finance (MOF) and Inland Revenue Authority of Singapore (Iras) said in a statement yesterday.
The annual value of Housing Board flats and most private residential properties will be raised from Jan 1, as part of Iras’ yearly review of properties to calculate how much tax should be paid, the authorities said.
A property’s annual value is its estimated yearly rent if it were to be rented out, and is determined based on the market rents of comparable properties and other factors.
The annual value is assessed for the purpose of property taxes, which are Singapore’s primary means of taxing wealth and are paid yearly.
As announced in Budget 2022, the second and final step of property tax rate increases will also take effect from Jan 1, with steeper hikes for higher-end properties. Those who own expensive private properties will feel the brunt of the revision, particularly owners of properties bought for investment.
The property tax rate increase will affect only residential properties not occupied by their owners and owner-occupied homes with an annual value of more than $30,000. Owner-occupied HDB flats are not affected.
The Straits Times
