Property Taxes For Residential Properties Including HDB Flats To Increase In 2024
Property taxes for most residential properties, including HDB flats, will increase in 2024 due to higher market rents and Annual Values (AVs) for most residential properties, the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS) announced today (30 Nov).
The Government will provide a one-off property tax rebate of up to 100% for all owner-occupied residential properties.
The rebate is tiered to ensure the tax regime remains progressive as well as that those who are more well-off pay their fair share of taxes.
Property taxes to go up in 2024
According to MOF and IRAS, property tax rates will increase based on the annual value of the property.
The increase in property tax will be higher for those with higher-value properties.
These are the rebates we can expect to see:
- 1 & 2-room flat: 100%
- 3-room flat: 70%
- 4-room flat: 50%
- 5-room flat: 40%
- Executive HDB: 30%
- Private property: 15%, capped at S$1,000
For those with AVs below S$30,000, there’ll be no change to the PT rate — which covers about 90% of owner-occupied residential properties, including all HDB flats.
Residential tax will increase by at least 1% from 2024, after a minimum 1% increase in 2023.
The average property taxes payable from 1 Jan 2024, along with the average increase, marked in brackets, are as follows:
- 3-room flat – S$4.10 a month (S$1.50 a month)
- 4-room flat – S$12.80 a month (S$2.40 a month)
- 5-room flat – S$17.90 a month (S$4.30 a month)
- Executive HDB – S$22.30 a month (S$6.30 a month)
Those who own or occupy 1- and 2-room HDB flats will continue to pay no property tax in 2024, MOF and IRAS said.
Meanwhile, owner-occupiers of other HDB flat types will have their rebate automatically offset against any property tax payable. This will mean that there’s an average increase of less than S$3 a month in 2024.
For private property owner-occupiers, the rebate will similarly be automatically offset.
The bottom half of private property owner-occupiers will see an increase of less than S$15 a month.
In addition, the AV thresholds for support schemes will be raised from Jan 2024 so that Singaporeans “with greater needs [will] continue to receive support”.
From 1 Jan 2024, the thresholds will be as follows:
- 1st AV Tier – Up to S$21,000
- 2nd AV Tier – More than S$21,000 and up to S$25,000
The revised threshold will cover all HDB flats. Meanwhile, the S$25,000 threshold will cover about 75% of residential properties, including some lower-value private properties, MOF and IRAS said.
Pay all property tax by 31 Jan 2024
IRAS reminds all property owners to pay their property tax, for which they should receive their bill before end-Dec 2023 and by 31 Jan 2024.
“There will be a 5% penalty imposed for property owners who fail to pay or have not arranged to pay their taxes via GIRO instalments by the due date,” IRAS warned.
Owners are encouraged to join GIRO so they can get up to 12 interest-free instalments, or they can do a one-time deduction.
“For example, an owner-occupier of an average 4-room HDB flat who has to pay property tax of S$154 this year would pay a monthly instalment of about S$12.80.
Those with DBS/POSB, UOB, or OCBC bank accounts can apply for GIRO and receive instant approval via Internet banking.
Individuals with financial difficulties can approach IRAS for assistance before 31 Jan 2024.
To find out the annual value of your own property, you can use the View Property Dashboard on the IRAS website.
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Featured image adapted from @niskal4 on Unsplash.
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