Progressive Property Tax Rates for Owner-Occupied Residential Properties – Property for sale Singapore

Progressive Property Tax Rates for Owner-Occupied Residential Properties – Property for sale Singapore

As announced in Budget 2013, the progressivity of the property tax structure
for owner-occupied residential properties will be enhanced through the
introduction of additional tiers of tax rates for properties with higher annual
values. Property for sale Singapore. 

The enhanced progressive property tax rates will be phased in over two years
starting from 1 January 2014. The revised full rate will take full effect from 1
January 2015. The enhanced progressive property tax rates for owner-occupied
residential properties are shown in the table below.

Owner-Occupier Tax Rates Owner-Occupier Tax Rates
Annual Value Effective from1/1/2014 Effective from1/1/2015
First $8,000 0% 0%
Next $47,000 4% 4%
Next $5,000 5% 6%
Next $10,000 6% 6%
Next $15,000 7% 8%
Next $15,000 9% 10%
Next $15,000 11% 12%
Next $15,000 13% 14%
AV in excess of $130,000 15% 16%


The following is an illustration of the property tax computation for an owner-occupied
residential property with an AV of $58,000:

First $8,000 @ 0% $0
Next $47,000 @ 4% $1,880
Remaining $3,000 @ 5% $150
Property tax payable for 2014 $2,030

With the lifting of the first tier AV from $6,000 to $8,000, about 950,000 home owners will enjoy tax savings of up to $80 as compared to 2013. Home owners with AVs more than $62,000 will see an increase in property tax payable as compared to 2013. Property for sale Singapore.

The progressivity of the property tax structure is increased such that owners
of higher-end homes pay more property tax. Only the top 1% of all home
owners would need to pay more taxes while 99% of owners will enjoy savings
of up to $80. Property for sale Singapore.

Home owners who are currently enjoying the owner-occupier concession do
not need to do anything to enjoy the new owner-occupier tax rates.

Please also check your eligibility for the owner-occupier tax rates. You and your spouse (if applicable) should not be enjoying the owner-occupier tax rates on another property. This is because owner-occupier tax rates can only be applied on one residential property at any one time. Property for sale Singapore.

A residential property owned by a company, association or a body of persons
will also not qualify for owner-occupier tax rates even though its staff or
director stays in the residential property. Property for sale Singapore.

Source: IRAS website

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