Higher property tax next year for most HDB flat owners

SINGAPORE: Most owners living in their Housing Board (HDB) flats will have to pay more in property taxes next year, amid a revision of their property's annual value.

The Inland Revenue Authority of Singapore (IRAS) said on Wednesday (Dec 1) it will revise upwards the annual values of HDB flats by 4 per cent to 6 per cent, reflecting the increase in market rentals.

The revision, part of IRAS’ annual review of properties to compute the property tax payable, take effect on Jan 1.

This is the first time since 2017 that the annual values of HDB flats are being revised.

The annual value is the estimated rent that could be collected annually if the property were to be rented out, and it is determined based on the market rate of comparable properties.

The property tax payable is derived by multiplying the property tax rate with the annual value of the unit.

With the revision, about 65 per cent of owners living in three-room flats will each pay between S$8 and S$14 more in property tax annually, said IRAS.

Owner-occupiers of four-room, five-room and executive flats will each pay between S$21 and S$26 more.

All one-room and two-room owner-occupiers as well as 35 per cent of three-room owner-occupiers will continue to pay no property tax.

"Similarly, IRAS reviews the annual values of private residential properties annually. Private residential property owners will also see an increase in their annual values in 2022," said the tax authority.

PAYABLE PROPERTY TAX FOR HDB OWNERS

Owner-occupiers enjoy concessionary property tax rates ranging between 0 per cent and 16 per cent, while the property tax rates for those who rent out their flats range between 10 per cent and 20 . 

The tax rates are progressive, with higher value properties being taxed at higher rates.
 

The 2022 property tax payable for HDB flat owner-occupiers is as follows:

All owners will receive their property tax bills by the end of this month. They are also reminded to pay their 2022 property tax by Jan 31 next year.

Those who fail to pay or have not arranged to pay their tax via GIRO instalments by the due date will incur a 5 per cent penalty. 

Property owners facing financial difficulties may approach IRAS for assistance.