Property taxes for most home owners will go up in 2024, in tandem with the annual value of HDB flats and most private residential properties being raised from Jan 1.
This is part of the Inland Revenue Authority of Singapore’s (Iras) yearly review of properties to calculate how much taxes should be paid.
The second and final step of property tax rate increases also took effect from Jan 1.
- Residential properties not occupied by their owners, including investment properties: Property tax rates were increased to 12 per cent to 36 per cent, compared with 11 per cent to 27 per cent previously.
- Owner-occupied homes with an annual value of more than $30,000: Property tax rates were raised to 6 per cent to 32 per cent, from 5 per cent to 23 per cent.
- All owner-occupied HDB flats are not affected.
The Government will provide a one-off rebate for all owner-occupied homes to help cushion the impact of the tax increase amid cost-of-living concerns.
Owner-occupiers of one- and two-room flats will get a 100 per cent rebate, while those with four-room units will get a 50 per cent rebate. Executive flat owner-occupiers will receive a 30 per cent rebate, while those with private properties will get a 15 per cent rebate, capped at $1,000.
Why it matters
The higher property taxes will affect investment properties and larger homes, such as luxury condominiums and landed properties, the most.
Coupled with high additional buyer’s stamp duty rates for investment properties, elevated interest rates and higher maintenance fees, investors are set to face higher costs, property analysts noted.
While some landlords may try to pass these costs on to tenants, the increased competition for rentals may make it difficult for them to do so. As a result, analysts expect landlords’ rental income to be dampened.
It is not expected to significantly impact property prices.