Property Tax

What is Property Tax?

Property Tax is a tax on the ownership of immovable properties in Singapore. It applies whether the property is occupied by the owner, rented out, or left vacant.

Unlike mobile forms of wealth (e.g. cash, stock investments, etc.), property cannot be easily moved or hidden. Thus, Property Tax cannot be avoided easily.

How is Property Tax calculated?

The Property Tax payable is based on:

• The applicable tax rate; and

• The property’s Annual Value (AV).

  • The AV is the estimated gross annual rent that a property could fetch if it were rented out, excluding furniture, furnishings and maintenance fees.

  • In determining the AV of a property, IRAS will consider the market rentals of similar or comparable properties, size and condition of the property, and other relevant factors.

  • The AV is determined in the same manner regardless of whether the property is owner-occupied, rented out, or left vacant.

💡 Please refer to IRAS’ website for the latest Property Tax rates.

How are residential properties taxed?

Residential properties are taxed on a progressive scale – the higher the property’s value, the higher the property tax:

• Owner-occupied residential properties enjoy lower tax rates to support home ownership.

• Non-owner-occupied residential properties face higher tax rates, as they are mainly investment properties.

How are non-residential properties taxed?

Non-residential properties, including industrial and commercial properties and land, are taxed at a single flat rate.