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How to Calculate Property Tax in Singapore

27 August 2024

Image of a calculator, a magnifying glass, and a wooden house illustrating property tax in singapore | correctcounts.com — Paying property tax in Singapore is an important part of being a homeowner or property owner | CorrectCounts.Com

Content:

What is Property Tax?
How is Property Tax Calculated?
How Much Property Tax Must I Pay?
Can I Claim Tax Exemptions and Reliefs?
Conclusion: How To Pay Property Tax in Singapore?

What is Property Tax?

Property tax is a tax on the ownership of immovable properties in Singapore (meaning assets that can’t be moved). It applies whether you are staying in the property (owner-occupied), renting it out (non owner-occupied), or leaving it vacant. ⁽¹⁾

Property tax is collected by IRAS (Inland Revenue Authority of Singapore), Singapore’s main tax collection statutory board. This article briefly covers important things to know about calculating property tax in Singapore.

How is Property Tax Calculated?

Property tax in Singapore is calculated using your property’s annual value (AV) .

What is the annual value (AV) of a property? The AV is the estimated gross annual rent the property can fetch from being rented out.

You don’t have to rent the property to get an AV. IRAS will calculate an estimated AV amount based on similar property rental yields and your property characteristics (location, condition, size, etc.)⁽²⁾

You can check your property’s AV through the ‘view property dashboard’ digital service by IRAS. Alternatively, you can pay to check the annual value of the property through IRAS’s ‘check annual value of property’ digital service. ⁽³⁾

How Much Property Tax Must I Pay?

Singapore property tax rates differ for every property since property taxation in Singapore is progressive. Progressive taxation means that property with a higher value is taxed more. This is to encourage home ownership – meaning that the state wants more people to own homes in Singapore without being deterred by high property tax rates. ⁽³⁾

Owner-occupied: 0% to 32% of the AV. ⁽³⁾

Non-owner-occupied: 12% to 36% of the AV, unless the property is excluded (refer to exclusion list below).

All other properties (commercial and industrial): 10% of the AV. ⁽³⁾

Non owner-occupied excluded properties include:

Accommodation within sports and recreational clubs
Chalets
Child/student care centres, kindergartens
Welfare homes
Hospitals and hospices
Places used for nursing care, recovery and rehabilitation
Hotels, backpacker inns, boarding and guest houses
Serviced apartment
Worker’s dormitory
Student hostel or boarding house
Staff quarters that are part of any of these properties

These properties must have planning approval before they are certified for these uses. You don’t need to apply to IRAS for exclusion as it will be applied when calculating your property tax.

Can I Claim Tax Exemptions and Reliefs?

Yes. There are various exemptions and reliefs that you can claim to reduce the amount of tax you have to pay. ⁽⁶⁾

Owner-Occupier Relief

Owner-occupied properties have lower property tax to encourage people to own homes in Singapore. As mentioned in the previous section, owner-occupied property is taxed at 0 to 32% of the AV, while non-owner-occupied property (meaning property that’s rented out) is taxed at 12 to 36% of the AV.

Rental Expenses Relief

Landlords can claim tax deductions on rental expenses. However, these expenses have to be wholly incurred while earning your rental income, meaning that you cannot claim expenses related to using the rental property for personal uses.

Some examples are:

Maintenance (pest control, painting, etc.)
Repairs to restore the property (excluding additions and alterations to the property)
Furniture and fittings (including replacements, and excluding depreciation value of the furniture and fittings due to wear and tear)
Internet charges
Utility expenses
Interest paid on housing loan or mortgage (but not the principal loan repayments)
Fire insurance premiums (excluding the assured capital amount by your insurer)
Property agent commission, advertising, stamp duties to secure first and subsequent tenants
Supervision fees (such as costs of hiring a company or property agent to maintain the property, attend to tenant complaints, and collect rental fees)

Visit the IRAS rental expenses page for more details on what you can and cannot claim.

Some landlords may keep receipts to claim the exact amount, but you can also claim 15% of your gross rental income to simplify the tax filing process. You can also claim tax deductions on your loan interest. ⁽⁵⁾

Building Land Remission

You can claim building land remission relief if you are demolishing and rebuilding your house to stay in it.

This means your property will be taxed at owner-occupied rates when you’re rebuilding the house for a maximum of two years.

Building Exemption for Religious Worship or Charitable Organisations

Buildings used for public religious worship or charitable organisations can claim exemptions for property tax. You’ll need to complete an application form for property tax exemption, available as a downloadable PDF file on the IRAS website.

Vacant Land

Landlords who buy vacant land intending to construct a house for owner occupancy can apply for owner-occupied tax rates on this land, for a maximum of two years.

Use IRAS’s property tax calculator for Singapore properties to determine how much property tax you must pay for the fiscal year.

Conclusion: How To Pay Property Tax in Singapore?

You must pay your annual property tax by 31 Jan every year. Any other property tax bill or notices issued to you by IRAS need to be paid one month from the date of the notice. ⁽⁷⁾

Payment Methods

Most landlords pay their property tax online on the IRAS website. GIRO (General Interbank Recurring Order) is the preferred payment method. It automates the one-time yearly payment. GIRO is a faster way of paying, and you’ll also get refunded tax credits quickly to your bank account.

You can also pay by PayLah/PayNow QR, AXS, and Internet Banking Transfer. Pay your property tax on time to avoid getting late payment penalties.

What if I Need Help?

If you need help with tax payment, visit the IRAS myTax portal. Log in with your Singpass, use myTaxMail and email IRAS for assistance.

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