Revision in Annual Values (AVs) of HDB Flats in 2012 - One-Off Property Tax Rebate for Owner-Occupied HDB Homes to Mitigate Impact of Increase in Property Tax

All one- and two-room owner-occupiers of HDB flats will continue to pay zero property tax in 2012, while those in three room flats will on average pay roughly the same tax as last year. Four- to five-room flats will pay $5 to $29 more for the year.

2       This comes after the Annual Values (AV) of HDB flats are revised upwards with effect from 1 January 2012, reflecting the rise in market values. To mitigate the increase in the property tax payable by lower and middle income households as a result of the AV revision, the Government will give a one-off rebate of $55 to Owner-Occupied HDB flats. This will enable three room flat owners to see little change in property tax payable despite higher flat values. It will also reduce the increase in tax payable for four- and five- room flat owners.

AV increase for HDB flats

3       The Inland Revenue Authority of Singapore (IRAS) reviews the AVs of all properties including HDB flats annually.

4        The AV is used as a basis to compute the property tax payable. Property tax is calculated at 10% of the AV for non Owner-Occupied homes. For Owner-Occupied homes, property tax payable is calculated at the concessionary tax rates as follows:

5       The AVs of all HDB flats were last revised on 1 January 2010, taking into account the changes in market rents in 2009.  They were not revised in 2011 as the increase in HDB market rents in the preceding year was small. Taking 2010 and 2011 together, market rents have risen by around 20 - 28%. Accordingly, the AVs of all HDB flats will be revised from 1 January 2012.

One-time Owner-Occupied HDB Flat Rebate for 2012

6       A rebate will be given to all Owner-Occupied HDB Flats to help them offset some of the increase in property tax. The rebate is a fixed amount of $55 or the property tax based on the 2012 AV, whichever is the lower. The rebate will automatically be given to all Owner-Occupied HDB flats.

7       The rebate will not apply to HDB flats that are not owner-occupied, which are currently being taxed at 10%.

8        94% of all HDB flats owners would receive the rebate.

Property Tax Changes for Owner-Occupied HDB Homes

9       All one- and two-room owner-occupiers will continue to pay zero property tax in 2012. Owner-occupiers of three-room flats will see no increase on average, while those in four and five room flats and above will see increases in property tax of between $5 and $29 after taking into account the property tax rebate, as shown below:

*Majority of 4-room Owner-Occupied HDB Flats will see an increase of $5 to $17 in property tax.

Only 2% of Owner-Occupied 4-roomers will see an increase of $29.

Combined Valuation Notice and Property Tax Bill

10     Most HDB flat owners should receive their property tax notices and bills by the end of this year, enclosed with an explanatory guide on "Property Tax on HDB Flats for 2012" – the guide explains how the property tax payable is calculated and how payment can be made.

Property Tax for 2012 is payable by 31 January 2012

11     Property tax has to be paid by 31 January 2012. IRAS encourages property owners to join the GIRO payment scheme to enjoy up to 12 interest-free monthly instalments. Customers of DBS/POSB and OCBC can apply for GIRO via Internet Banking and receive instant approval.

12     Owners can e-file an objection to IRAS if they do not agree with the revised AVs of their properties. Information on payment modes and details of property tax and AV revision are available at www.iras.gov.sg ↗ (opens in new tab). Taxpayers with enquiries may call 1800-356 8300 or e-mail propertytax@iras.gov.sg ↗ (opens in new tab)

Ministry of Finance and Inland Revenue Authority of Singapore

Appendix 1: Illustration of Property Tax Computation

These examples show how the property tax payable is computed after taking into account the 2012 Owner-Occupied HDB Flat Rebate for Owner-Occupied HDB Flats.