Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR’s calculations are indicative only. Always verify property tax liability with IRAS or a licensed tax advisor before advising clients.
What Is Property Tax in Singapore?
Property tax is an annual tax levied by the Inland Revenue Authority of Singapore (IRAS) on all property owners in Singapore. It applies to residential properties, commercial properties, and industrial properties. Unlike income tax, property tax is assessed on the Annual Value (AV) of the property, not on the purchase price or market value.
For CEA agents, property tax is most relevant when advising investment property clients. The non-owner-occupier rates are significantly higher than owner-occupier rates, and increases in Annual Value directly affect the tax bill.
Understanding Annual Value (AV)
The Annual Value is IRAS’s estimate of the annual rent the property would fetch if rented out unfurnished, excluding furniture and maintenance fees. IRAS sets the AV based on rental transactions for comparable properties in the same area.
Key points about AV:
- The AV is not the same as the actual rent received. Even if the property is owner-occupied, IRAS still imputes an AV based on market rentals.
- AV is reviewed periodically by IRAS and can increase when market rentals rise. Following the 2022–2024 rental surge, many residential property AVs in Singapore increased substantially.
- Owners can check their current AV via MyTax Portal at mytax.iras.gov.sg and may object to the AV assessment within 30 days of receiving their property tax bill.
- For HDB flats, IRAS uses a standardised AV assessment for each flat type and location.
Owner-Occupier Residential Tax Rates
Singapore Citizens and SPRs who use their residential property as their principal residence qualify for the owner-occupier rates, which are significantly lower than the non-owner-occupier rates.
| Annual Value (SGD) | Owner-Occupier Rate | Tax on Band |
|---|---|---|
| First 8,000 | 0% | 0 |
| Next 22,000 (8,001–30,000) | 4% | 880 |
| Next 10,000 (30,001–40,000) | 6% | 600 |
| Next 15,000 (40,001–55,000) | 10% | 1,500 |
| Next 15,000 (55,001–70,000) | 14% | 2,100 |
| Next 15,000 (70,001–85,000) | 20% | 3,000 |
| Next 15,000 (85,001–100,000) | 26% | 3,900 |
| Above 100,000 | 32% | — |
Source: IRAS property tax rates for owner-occupied residential properties (Budget 2022 Phase 2, effective 1 Jan 2024). Verified as at Q2 2026. Always confirm current rates at iras.gov.sg.
Non-Owner-Occupier Residential Tax Rates
All residential properties that are rented out, vacant, or owned by companies or foreigners are assessed at the non-owner-occupier (investment) rates. These rates are higher and the progressive structure is steeper.
| Annual Value (SGD) | Non-Owner-Occupier Rate | Tax on Band |
|---|---|---|
| First 30,000 | 12% | 3,600 |
| Next 15,000 (30,001–45,000) | 20% | 3,000 |
| Next 15,000 (45,001–60,000) | 28% | 4,200 |
| Above 60,000 | 36% | — |
Source: IRAS property tax rates for non-owner-occupied residential properties (Budget 2022 Phase 2, effective 1 Jan 2024). Verified as at Q2 2026. Always confirm current rates at iras.gov.sg.
Worked Example: Investment Condo in District 15
Consider a 2-bedroom condo in District 15 with an IRAS-assessed Annual Value of SGD 42,000. The owner rents it out and does not live there (non-owner-occupier).
| AV Band | Rate | Tax |
|---|---|---|
| First SGD 30,000 | 12% | SGD 3,600 |
| Next SGD 12,000 (30,001–42,000) | 20% | SGD 2,400 |
| Total annual property tax | — | SGD 6,000 |
That is SGD 500 per month in property tax alone on top of mortgage, maintenance fees, and insurance. For a property generating SGD 3,500/month in rent, property tax represents roughly 14% of gross rental income.
Agent note: Always include property tax in the net yield calculation when presenting investment properties. Quoting gross yield without deducting property tax, maintenance, and agent fees overstates the return and can create unrealistic expectations for the buyer.
AV Increases and the Rental Market
IRAS reviews AVs periodically based on actual rental transactions in the area. When the rental market rises sharply — as it did in 2022–2024 in Singapore — IRAS may revise AVs upward with a lag. This means property tax can increase significantly even if the owner does not change anything about how the property is used.
For clients purchasing investment properties in 2026, it is worth noting that AV levels may reflect the elevated rentals of the recent cycle. If market rents soften, owners can apply to IRAS for an AV review, but the process takes time and is not guaranteed to reduce the assessed value.
Objecting to Your Annual Value
Property owners who believe their AV is too high can object. The process:
- Lodge an objection within 30 days of receiving the property tax bill or the Annual Value notice.
- Submit evidence of comparable rental transactions in the same area (lease agreements, URA rental data).
- IRAS will review and issue a notice of revised AV if the objection is accepted. If rejected, the owner may appeal to the Valuation Review Board.
Objections are common after large AV increases. CEA agents are not qualified to provide tax advisory, but pointing clients to this option ensures they are aware of the process.
Property Tax for HDB Flats
HDB flats are also subject to property tax. The AV for HDB flats is set by IRAS based on a standardised assessment of flat type and location.
For owner-occupied HDB flats, the tax burden is modest because the first SGD 8,000 of AV is taxed at 0% and most HDB AVs fall in the lower bands. However, when HDB flat owners rent out their entire flat (after MOP), the non-owner-occupier rates apply and the tax bill increases accordingly.
Commercial and Industrial Property Tax
Commercial and industrial properties are taxed at a flat rate of 10% of the Annual Value, regardless of owner-occupancy status. The progressive structure that applies to residential properties does not apply to commercial or industrial assets.
For clients considering shop units, shophouses, or industrial strata units as investment properties, the tax structure is simpler but the AV is typically assessed at market rental rates.
Practical Implications for CEA Agents
When advising clients on investment property decisions, incorporate property tax as part of the full holding cost picture alongside:
- Mortgage repayments (modelled in LEVR’s TDSR and home loan calculators)
- ABSD paid upfront (a sunk cost that affects yield from day one)
- Maintenance and sinking fund contributions
- Insurance
- Agent fees and vacancy allowance when modelling rental income
Net yield, not gross yield, is what determines whether a property investment makes sense for a client. Use LEVR’s Rental Analysis Calculator to compare gross and net yield scenarios before presenting numbers to an investor client.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.