Progressive Property Tax Rates for Non-Owner-Occupied Residential Properties – Singapore property for sale
As announced in Budget 2013, a six-tier progressive property tax rate structure will be introduced for non-owner-occupied residential properties to increase the progressivity of the property tax structure. The new progressive property tax rate structure will take effect from 1 January 2014. Other properties like land parcels, commercial and industrial buildings will continue to be taxed at 10%. Singapore property for sale.
The increase in property tax rates for residential properties will be phased in over two years as shown in the table below.
Residential Tax Rates (RTR)
| Annual Value | Effective from 1 Jan 2014 | Effective from 1 Jan 2015 |
| First $30,000 | 10% | 10% |
| Next $15,000 | 11% | 12% |
| Next $15,000 | 13% | 14% |
| Next $15,000 | 15% | 16% |
| Next $15,000 | 17% | 18% |
| AV in excess of $90,000 | 19% | 20% |
The following is an illustration on the property tax computation for a non-owner-occupied residential property with an AV of $70,000:
| First $30,000 @ 10% | $3,000 |
| Next $15,000 @ 11% | $1,650 |
| Next $15,000 @ 13% | $1,950 |
| Remaining $10,000 @ 15% | $1,500 |
| Total property tax payable for 2014 | $8,100 |
As shown above, the first $30,000 is taxed at 10%. The next $15,000 is taxed at 11%, subsequent $15,000 is taxed at 13% and the remaining $10,000 is taxed at a rate of 15%. The total tax payable is $8,100. You may use the interactive calculator on the IRAS website (www.iras.gov.sg > Quick Links > Tax Calculators > Property Tax) to calculate your property tax payable from 2014. Singapore property for sale.
Impact of Progressive Property Tax Rates for Residential Properties
With the new tax structure, non-owner-occupied residential properties with AVs more than $30,000 will pay more property tax. For most suburban condominiums, there will only be a small increase in property tax of about $100 to $300 per year. The increase will be more significant for high end investment properties. Singapore property for sale.
Non-owner-occupied residential properties with AV of about $70,000, such as condominiums in the central area will face a $1,500 increase in property tax. A high-end property such as a landed property in the central area with AV of $150,000 will see an increase in property tax of $9,000 per year. Singapore property for sale.
Other Information
The payment due date for that year’s property tax is the 31st of January of the following year. If you do not pay or arrange to pay your property tax by 31st of January of the following year, a 5% late payment penalty will be imposed. The preferred mode of payment is GIRO. Taxpayers on GIRO will receive an instalment plan together with their notice/bill. Taxpayers who are not on GIRO may want to join GIRO for greater convenience. You can choose to make a one-time GIRO deduction or to enjoy 12 interest-free monthly GIRO instalments.
Source: IRAS website
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