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 2015 | Property 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 2015 | Property tax payable |
---|---|---|
First 8,000 | X 0% | = 0 |
Next 28,000 | X 4% | = $1,120 |
Property tax payable | = $1,120 |
Non-owner-occupier residential tax rates (residential properties)
Non-owner occupied residential properties are condominiums, HDB flats or other residential properties that the owner does not live in (“occupy”). Hence, owner-occupier tax rates do not apply.
The following tax rates apply to non-owner occupied properties except for those in the exclusion list.
Non-owner-occupier residential tax rates | ||
---|---|---|
Annual Value ($) | Effective 1 Jan 2015 | Property 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 |
Residential properties on the exclusion list are taxed at 10%.
Excluded properties
- Accommodation facilities within any sports and recreational club
- Chalet
- Child care centre, student care centre, or kindergarten
- Welfare home
- Hospital, hospice, or place for rehabilitation, convalescence, nursing care or similar purposes
- Hotel, backpackers’ hostel, boarding house or guest house
- Serviced apartment
- Staff quarters that are part of any property exempted from tax under S6(6) of the Property Tax Act
- Student’s boarding house or hostel
- 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 rate | Property tax payable |
---|---|---|
54,000 | X 10% | = $5,400 |
Property tax payable | = $5,400 |