What Is Property Tax and Who Pays It?
Property tax is an annual tax on property ownership in Singapore, levied by the Inland Revenue Authority of Singapore (IRAS). Unlike stamp duties, which are one-off charges at purchase, property tax recurs every year for as long as you own the property.
It is paid by all property owners — HDB flat owners, condominium owners, landed property owners, and owners of non-residential property such as shophouses and offices. It applies whether the property is occupied, rented out, or sitting vacant.
Property tax is not a wealth tax on your purchase price, and it is not based on your property's market value. It is based on a rental estimate. That distinction alone saves owners thousands of dollars in misplaced assumptions every year.
Annual Value (AV) Explained
Annual Value is IRAS's estimate of the gross annual rent your property could reasonably fetch if it were rented out, as at 31 December of the preceding year. Crucially, it excludes:
- Furniture and furnishings
- Maintenance and repair costs
- Property tax itself
AV is derived from market rental evidence — actual rents achieved for comparable units in comparable locations, adjusted for size, condition and amenities. It is reviewed annually, usually at the start of the year.
What AV is NOT
| People often think AV is… | But AV is actually… |
|---|---|
| Your purchase price | A rental estimate, far lower than price |
| Your property's market value | Rent-based, not sale-based |
| Your actual rental income | A market estimate, whether or not you rent it out |
| Fixed for the life of the property | Reviewed annually with market rents |
A landed home worth S$6 million might have an AV of only S$90,000 — a fraction of its price. This is why reporting on "property tax rises" can be misleading: an AV increase reflects rising market rents, not a revaluation of your asset.
Where to check your AV
Log in to the IRAS myTax Portal with Singpass. Your AV, the rate applied and the resulting tax are all itemised on your annual bill.
Owner-Occupier vs Non-Owner-Occupier Rates
This is the single biggest lever on your property tax. Singapore uses two different progressive rate schedules.
Owner-occupier rates
Applied to the home you live in. The schedule is progressive and gentle at the bottom — the first tier starts at 0% for the lowest AV band, stepping up through 4%, 6%, 10% and rising in bands toward the top of the range. Most owner-occupied HDB flats and entry-level condos fall into the lowest tiers.
Non-owner-occupier rates
Applied to residential property you do not live in — investment units, second homes, vacant properties, and rented-out apartments. The schedule starts much higher (around 12%) and rises steeply in progressive bands.
Worked Examples in SGD
Illustrative computations based on the 2026 progressive schedules. Your actual bill depends on the AV IRAS assigns and any rebates applied.
Example 1 — Owner-occupied 4-room HDB flat, AV S$9,000
The lowest AV band for owner-occupied residential property is taxed at 0%.
Property tax payable: approximately S$0 (before any flat-amount rebate considerations)
Example 2 — Owner-occupied 4-room HDB flat, AV S$13,000
The first S$12,000 of AV is taxed at 0%. The remaining S$1,000 falls into the next band at 4%.
Property tax payable: approximately S$40
Example 3 — Owner-occupied condominium, AV S$36,000
Applied across the progressive owner-occupier bands, the blended effective rate for this AV sits in the mid single digits.
Property tax payable: approximately S$1,000–S$1,300 (illustrative)
Example 4 — Rented-out condominium, AV S$36,000
The same unit, taxed at non-owner-occupier rates starting around 12%, attracts a substantially higher bill.
Property tax payable: approximately S$4,000–S$4,400 (illustrative)
The Property Growth Rebate
The Property Growth Rebate is a flat-amount rebate applied automatically against property tax for eligible owner-occupied homes. It is announced in the annual Budget and applied by IRAS without any application on your part.
- Who gets it: owner-occupiers meeting the eligibility conditions set for the year.
- How it works: a flat dollar reduction off the tax payable — not a change to your AV or your rate.
- What to do: nothing. Verify it on your bill; if it is missing and you believe you qualify, contact IRAS.
Because it is flat rather than proportional, the rebate delivers proportionally more relief to smaller bills — which is why many HDB and entry-level condo owners see their effective property tax reduced to a very small figure.
How to Legally Reduce Your Property Tax
- Claim the owner-occupier rate on the home you live in. It is the single largest saving available, and it requires your actual residence to be correctly declared to IRAS.
- Check your AV against real rents. If comparable units in your development are renting well below the rent implied by your AV, you may have grounds for an objection.
- File an Objection with IRAS if the AV is overstated. There is a statutory window to object after your bill is issued. Support it with concrete rental comparables, not opinion.
- Declare tenancy changes promptly. When a property shifts from owner-occupied to rented, update IRAS. Correcting this late is far more expensive than declaring it on time.
- Do not over-renovate purely for AV reasons. AV is rent-based, so a renovation that raises achievable rent can raise your AV. Decide on renovation for sale value or lifestyle, not to beat property tax.
- Budget for annual movement. Because AV tracks rents, a strong rental market can lift your bill without any change to your property. Plan for it.
What Property Investors Must Know
For investors, property tax is a recurring drag on net yield — and it is frequently omitted from the glossy gross-yield numbers quoted in marketing material.
Building property tax into your yield
- Gross yield = annual rent ÷ purchase price. Easy to compute, and misleading.
- Net yield = (annual rent − property tax − maintenance − management fees − vacancy allowance) ÷ purchase price. This is the number that matters.
- A higher-AV unit with the same rent produces a thinner net return. Two units with identical gross yields can differ meaningfully in net terms.
Vacancy still costs you
Property tax is payable on vacant residential property, and vacant units are generally taxed at the higher non-owner-occupier rate — because the owner-occupier concession applies only to a home you genuinely live in. During a void period you receive no rent and still owe tax. Always hold a vacancy buffer.
Non-residential property
Shophouses, offices and other non-residential properties are taxed on a separate non-residential schedule, generally at a flat rate on AV rather than the residential progressive bands. Investors in commercial assets should model this separately.
Common Mistakes Owners Make
- Confusing AV with market value. AV is rent-based and far lower than your sale price.
- Paying non-owner-occupier rates on your own home. A costly and easily avoided error.
- Claiming owner-occupier status on a rented unit. Back-taxes and penalties follow.
- Ignoring a clearly overstated AV. Objections are free and time-limited — use the window.
- Forgetting the rebate when budgeting. It can materially change your effective bill.
- Leaving property tax out of investment yield. A silent, recurring cost that erodes returns.
- Assuming vacancy means no tax. It does not — and vacant units usually pay the higher rate.
Expert advice: treat property tax as a fixed annual line item in every holding-cost model, exactly as you would a mortgage instalment. Owners who do this spot affordability problems years earlier than those who do not.
Frequently Asked Questions
How much is property tax in Singapore in 2026?
Owner-occupied homes use a progressive rate starting at 0% on the lowest Annual Value band and rising through 4%, 6%, 10% and higher bands. Non-owner-occupied residential property uses a much higher schedule starting around 12%. Owner-occupied HDB flats often fall into the 0% tier, producing annual bills near S$40–60 or lower after rebates.
What is Annual Value (AV)?
AV is IRAS's estimate of the gross annual rent your property could fetch, excluding furniture, maintenance and property tax. It is based on market rents — not your purchase price or your property's market value — and is reviewed annually.
How can I legally reduce my property tax?
Claim the owner-occupier rate on the home you live in, object to an overstated AV with rental comparables within the statutory window, declare tenancy changes promptly, and confirm the Property Growth Rebate appears on your bill.
Do I pay property tax on an empty property?
Yes. Property tax applies regardless of occupancy, and vacant residential property is generally taxed at the higher non-owner-occupier rate because the concession applies only to a home you actually live in.
Can foreigners claim the owner-occupier property tax rate?
The owner-occupier concession applies to the home you live in regardless of citizenship. However, foreigners buying residential property in Singapore pay a 60% Additional Buyer's Stamp Duty at purchase — a separate and far larger one-off cost.
When is property tax due in Singapore?
IRAS issues property tax bills annually, typically at the start of the year via the myTax Portal. You may pay in a lump sum or by monthly GIRO instalments. Payment is due within the period stated on your bill.