Property tax in Singapore is a recurring tax imposed on property ownership. The tax applies whether the property is owner-occupied, rented out, or vacant. The amount payable is calculated based on the property’s Annual Value (AV) and the applicable property tax rates, as determined by the Inland Revenue Authority of Singapore (IRAS).
Understanding how AV and tax rates interact is essential for homeowners, landlords, and property investors. Property tax directly affects cash flow, rental yield, and long-term holding costs.
Key takeaways
- Property tax in Singapore is calculated using Annual Value (AV) × applicable tax rates.
- AV represents the estimated annual rental income of a property, as assessed by IRAS.
- Tax rates differ based on property usage, not just property type.
- Owner-occupied residential properties enjoy lower progressive tax rates.
- Non-owner-occupied residential properties are taxed at higher progressive rates.
- Non-residential properties are typically taxed at a flat 10% rate.
- A one-off property tax rebate applies to eligible owner-occupied homes in 2026.
What is property tax in Singapore?
Property tax in Singapore is a tax levied on property ownership. It applies regardless of whether the property is:
- Owner-occupied
- Rented out
- Vacant
The tax is computed based on the property’s Annual Value (AV), which IRAS assesses using comparable market rental data.
Because the system is based on potential rental value rather than actual rental income, tax obligations remain even during vacancy periods.
What is Annual Value (AV)?
Annual Value (AV) is the estimated gross annual rent a property could fetch if it were rented out, excluding:
- Furniture and furnishings
- Maintenance fees
- Service charges
IRAS determines AV by analysing market rental rates of similar or comparable properties.
Using AV ensures that property tax reflects the income-generating potential of the property. This creates a consistent and structured basis for taxation across different property types.
How property tax is calculated
Property tax in Singapore is calculated using the following formula:
Property Tax Payable = Annual Value (AV) × Applicable Tax Rates
Because Singapore applies a progressive tax structure for residential properties, different portions of the AV are taxed at different marginal rates.
Tax treatment depends primarily on property usage, not just property classification.
Read more: Is This Property Affordable? Here’s How You Can Tell in Singapore
Property tax rates in Singapore
Singapore applies different tax treatments depending on whether a property is owner-occupied, non-owner-occupied, or non-residential.
Owner-occupied residential properties
Owner-occupied residential properties qualify for lower progressive tax rates. This concession applies only to one property per owner that is declared as their place of residence.
From 1 January 2025, owner-occupier tax rates range from:
This progressive structure reduces tax burden for lower-value homes while increasing rates for higher-value properties.
Non-owner-occupied residential properties
Non-owner-occupied residential properties include properties that are:
- Rented out
- Vacant
- Not declared as the owner’s residence
These properties are subject to higher progressive tax rates. Investment properties fall under this category.
Because tax is based on AV rather than actual rent collected, landlords remain liable for property tax even during vacancy periods.
Non-residential properties
Non-residential properties include:
- Offices
- Retail shops
- Commercial units
- Industrial properties
These properties are generally taxed at a flat 10% rate, rather than progressive tiers.
Step-by-step guide to calculating property tax
Step 1: Check your Annual Value (AV)
Property owners can log in to mytax.iras.gov.sg using Singpass to view their property’s AV at no charge.
If checking the AV of a property not under your ownership, IRAS provides a digital “Check Annual Value of Property” service for a fee of S$2.50 per search, payable via credit card or eNETS.
Step 2: Identify your tax category
Determine how the property is used:
- Owner-occupied
- Rented out
- Vacant
- Commercial or industrial
Usage determines the applicable tax rates.
Step 3: Apply the progressive rates
Because residential property tax is progressive, each portion of AV is taxed at its corresponding marginal rate.
For example, under the 2025 owner-occupier tax structure:
| Annual Value | Tax rate effective from 1 Jan 2025 | Property tax payable |
| First S$12,000 Next S$28,000 | 0% 4% | S$0 S$1,120 |
| First S$40,000 Next S$10,000 | – 6% | S$1,120 S$600 |
| First S$50,000 Next S$25,000 | – 10% | S$1,720 S$2,500 |
| First $75,000 Next S$10,000 | – 14% | S$4,220 S$1,400 |
| First S$85,000 Next S$15,000 | – 20% | S$5,620 S$3,000 |
| First S$100,000 Next S$40,000 | – 26% | S$8,620 S$10,400 |
| First S$140,000 Above S$140,000 | – 32% | S$19,020 |
This tiered structure means higher-value homes face higher marginal tax rates, but only on the portion exceeding each threshold.
Residential vs non-residential property tax: Key differences
Many people misunderstand the distinction between residential and non-residential property tax.
Tax authorities determine the tax treatment based on how the property is used, not simply on its classification. For example:
- An owner who occupies a condominium qualifies for the lower owner-occupier tax rates.
- If the owner rents out the same condominium, IRAS taxes it at non-owner-occupied residential rates.
- If a property functions as an office unit, IRAS taxes it at non-residential rates, typically at a flat 10%.
Misunderstanding usage classification can result in incorrect tax expectations and unexpected increases in payable amounts.
Read more: How To Increase the Value of Your Home and Make It an Even Greater Asset
Investment properties and tax implications
Investment properties are taxed under non-owner-occupied residential rates, which are significantly higher than owner-occupier rates.
Because property tax is based on AV rather than actual rent received:
- Tax remains payable during vacancy.
- Rental yield calculations must account for property tax.
- Cash flow projections should incorporate rising AV assessments.
Failing to account for property tax can materially reduce actual investment returns.
Read more: The Hidden Costs of Owning a Home in Singapore
2026 property tax relief for owner-occupied homes
To mitigate rising property tax costs, the Singapore Government announced a one-off rebate in 2026 for owner-occupied residential properties.
| Property type | Rebate |
| HDB flats | 15% of property tax payable |
| Private residential properties | 10% rebate, capped at S$500 |
One- and two-room HDB flats will continue to pay no property tax.
This relief reduces immediate tax burden but does not permanently change tax rate structures.
When you must update IRAS
Property owners must notify IRAS promptly when certain events occur. Failure to do so may result in incorrect tax assessments or penalties.
| Situation | Relevant section | Required action | Purpose |
| Sale or transfer of property ownership | Section 19(1) | Inform IRAS immediately after ownership changes. | Reassess property tax under the new owner. |
| Completion of demolition | Section 19(7) | Notify IRAS once the property structure has been demolished. | Prevents taxation on a demolished building and allows IRAS to assess rebate eligibility. |
| Rental of property | Section 19(9) | Provide details of the tenancy, including rental amount and rental period. | Enables accurate assessment of the property’s Annual Value (AV). |
| Increase in rental sum | Section 19(9) | Report any increase in rent received from tenants. | Allows IRAS to update the AV based on the new rental value. |
| Premium charged for letting | Section 19(10) | Declare any premium collected from tenants for the lease. | Ensures correct tax assessment as premiums may affect tax liability. |
| Cessation of owner-occupation | Section 19(11) | Inform IRAS within 15 days if the owner stops occupying the property. | Allows IRAS to apply the non-owner-occupied property tax rate. |
For regulatory updates and property-related compliance matters, refer to official IRAS and URA guidance.
FAQs about property tax in Singapore
1. How can I confirm whether I am paying owner-occupier or non-owner-occupier tax rates?
Log in to mytax.iras.gov.sg to view your Property Tax Dashboard and official tax notice.
2. What happens if I own and occupy more than one residential property?
The owner-occupier concession applies to only one property. Owners pay non-owner-occupied residential tax rates on all additional properties.
3. Must I inform IRAS if I change the usage of my property?
Yes. IRAS must be notified in writing within 15 days of the change.
4. Do I pay property tax on a vacant property?
Yes. Property tax applies regardless of occupancy status because it is based on Annual Value rather than actual rental income.
Property owners in Singapore must treat property tax as a structural cost of ownership. By understanding Annual Value, tax rates, and usage classification, property owners can plan more accurately and avoid unexpected liabilities.
