By Sandy Pramuji
SINGAPORE – Property taxes for most residential units will increase in 2023.
In a statement on Friday (2 December), the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS) said that the Annual Values (AV) of most residential units, which include private properties and HDB flats, will be revised upwards from 1 January, reflecting the rise in market rents. The AV revision is part of IRAS annual review of properties.
The property tax payable is derived by multiplying the property tax rate with the AV of the property. As a concession, owner-occupiers enjoy lower property tax rates for their homes, while all non-owner-occupied residential properties – which include second homes and those held for renting out or investment – are taxed at higher residential tax rates.
The government will provide a one-off 60 per cent property tax rebate for all owner-occupied properties, up to a maximum of S$60, they said. "All one- and two-room HDB owner-occupiers will continue to pay no property tax in 2023 as their AVs remain below $8,000. For the majority of owner-occupiers in other HDB flat types, they will pay between $30 and $70 more in property tax compared to 2022, after taking into account the rebate," MOF and IRAS noted. The rebate will be automatically offset against any property tax payable in 2023.
Since the last revision of AVs on 1 January 2022, market rents of HDB flats and private residential properties have risen by more than 20 per cent.
Social support schemes not affected
Social support schemes that use AV to determine scheme eligibility – for instance, the GST Voucher scheme, MediShield Life premium subsidies, and the Workfare Income Supplement Scheme – will not be affected by the revision of AVs in 2023.
Property owners facing financial difficulties may approach IRAS for assistance before 31 January 2023. They also can appeal for a longer payment plan via the 'Apply for Payment Plan' e-Service at myTax Portal using Singpass or IRAS Unique Account. Property owners may also contact IRAS at 1800 356 8300.