Property Tax is an annual tax payable by property owners in Singapore and is administered by the Inland Revenue Authority of Singapore (IRAS).Unlike ABSD and BSD, Property Tax is not a one-time payment made when purchasing a property. Instead, it is payable annually while the property is owned.The basic calculation for residential Property Tax is:Property Tax = Annual Value (AV) × Applicable Tax RateNote that AV is neither the property’s purchase price nor its current market value. It is the Annual Value assessed by IRAS based on factors including the market rents of similar or comparable properties.
1. What Is Annual Value (AV)?
AV is an important basis for calculating Property Tax. For a typical building, it is the estimated gross annual rent that the property could reasonably be expected to earn if rented out, excluding the rental value of furniture, furnishings and maintenance fees. IRAS considers market rents for similar or comparable properties and makes adjustments based on factors such as location, floor area, condition and other physical attributes. A property’s AV is not necessarily equal to the rent its owner actually receives.For example, if a condominium earns actual annual rental income of S$60,000, this does not necessarily mean that its AV is S$60,000. IRAS assesses the AV independently based on comparable properties and market rental evidence.Property Tax is a tax on property ownership, so it is generally payable whether the property is rented out, vacant or occupied by its owner. However, eligible owner-occupied homes qualify for lower tax rates. Vacant residential properties are generally subject to non-owner-occupier tax rates if they do not qualify for owner-occupier rates; vacancy alone does not qualify the property for tax relief.
2. Residential Property Tax Has Two Main Tax Rates
Residential Property Tax generally falls under one of two categories: Owner-Occupier Tax Rates and Non-Owner-Occupier Residential Tax Rates. The key consideration is whether the owner lives in the property and meets IRAS’s eligibility conditions. Eligible owner-occupied homes benefit from lower tax rates.
2.1 Owner-Occupied Tax Rate
These lower rates may apply when the owner owns and lives in the residential property, subject to IRAS’s eligibility conditions. Properties owned by companies or trusts, vacant properties, fully rented-out properties, and properties in which the owner does not live generally do not qualify. If part of the property is rented out while the owner continues to live there, the property may still qualify.
2.2 Non-Owner-Occupied Tax Rate
These rates generally apply to residential properties in which the owner does not live, including:• Residential properties rented out in full• Investment properties• Vacant residential properties that do not qualify for owner-occupier rates• Other residential properties that the owner does not occupyNon-owner-occupier tax rates are generally higher than owner-occupier rates. Property Tax is generally still payable on a vacant residential property; vacancy alone does not automatically qualify it for tax relief.
3. Residential Property Tax Rates in 2026
Residential Property Tax is calculated progressively based on the property’s AV. Each tax rate applies only to the portion of AV within its respective tier; the entire AV is not taxed at the highest applicable rate.
Owner-Occupied: Owner-Occupied Tax RateThe applicable progressive tax rates are:
In other words, Property Tax is not calculated by multiplying the entire AV by the highest applicable tax rate. Instead, it is calculated progressively across the different tiers.For example, if an owner-occupied property has an AV of S$50,000:• First S$12,000 × 0% = S$0• Next S$28,000 × 4% = S$1,120• Remaining S$10,000 × 6% = S$600Annual Property Tax: S$1,720.A residential property with an AV of S$50,000 may therefore incur less tax if it qualifies for owner-occupier rates than if it is taxed at non-owner-occupier rates. The actual tax payable depends on the AV assessed by IRAS, the applicable tax rates and any reliefs available.
Non-Owner-Occupier Residential Tax RatesIf the owner does not live in the property and it is used for rental or another non-owner-occupied purpose, the Non-Owner-Occupier Residential Property Tax Rates apply.The 2026 non-owner-occupier residential tax rates are:
For example, if a non-owner-occupied property has an AV of S$50,000:• First S$30,000 × 12% = S$3,600• Next S$15,000 × 14% = S$2,100• Remaining S$5,000 × 16% = S$800Annual Property Tax: S$6,500.A residential property with an AV of S$50,000 may therefore incur less tax if it qualifies for owner-occupier rates than if it is taxed at non-owner-occupier rates. The actual tax payable depends on the AV assessed by IRAS, the applicable tax rates and any reliefs available.
4. What Property Tax Rebates Are Available for Owner-Occupied Properties in 2026?
In 2026, the Government is providing a one-off Property Tax rebate for eligible owner-occupied residential properties:• Owner-occupied HDB flats: 15%• Owner-occupied private residential properties: 10%, capped at S$500The rebate will be automatically offset against any Property Tax payable and reflected in the 2026 Property Tax Bill for eligible properties.This is a one-off tax rebate for 2026 and should not be understood as a permanent change to the tax rates.
5. How Is Property Tax for HDB Flats Different?
HDB flats are also subject to Property Tax. The applicable tax rates depend on whether the flat qualifies for owner-occupier rates; HDB flats do not have a separate tax-rate schedule simply because they are HDB flats.If the owner lives in the HDB flat and meets IRAS’s eligibility conditions, the owner-occupier residential tax rates apply: the first S$12,000 of AV is taxed at 0%, and the portion above S$12,000 up to S$40,000 is taxed at 4%. For an owner-occupied HDB flat with an AV in this range, the tax can therefore be calculated as 4% of the amount exceeding S$12,000.If the owner does not live in the HDB flat—for example, if it is rented out in full or left vacant—the non-owner-occupier residential progressive tax rates generally apply. These rates start at 12% on the first S$30,000 of AV and increase across the subsequent tiers; the maximum rate should not be described as 10%.For example, if an HDB flat has an AV of S$16,020:If the owner lives in the flat:
• First S$12,000 × 0% = S$0
• Remaining S$4,020 × 4% = S$160.80Annual Property Tax: S$160.80. If the property qualifies for the 2026 owner-occupied HDB rebate, the 15% rebate is S$24.12, bringing the amount payable to approximately S$136.68.
If the owner does not live in the HDB flat:
S$16,020 × 12% = S$1,922.40Annual Property Tax: S$1,922.40, before any other applicable adjustments.Property Tax can therefore differ significantly between an owner-occupied HDB flat and a non-owner-occupied one. To determine the applicable amount, first check whether the property qualifies for owner-occupier rates, then calculate the tax using the AV assessed by IRAS and the applicable rates.
6. Can I Still Enjoy Owner-Occupier Tax Rates When I Buy a Second Property?
This is one of the most commonly misunderstood issues among owners of multiple properties.Not every property qualifies for Owner-Occupier Tax Rates. If an individual owns multiple residential properties, they cannot assume that each property can be taxed at the owner-occupier rates.Generally, the owner-occupier concession can apply to only one qualifying residential property in which the owner lives.For example, a Singapore Citizen owns two condominiums:• Condominium A: the owner lives in it• Condominium B: rented outIn this case, Condominium A may qualify for Owner-Occupier Tax Rates, while Condominium B will generally be taxed at the Non-Owner-Occupier Residential Tax Rates.IRAS states that an owner who owns and lives in more than one home can apply for owner-occupier rates for only one property. A newly purchased property does not automatically qualify for the concession if the owner or their spouse is already enjoying owner-occupier rates on another residential property. If the owner moves to a different property, they should apply for owner-occupier rates for that property and withdraw the concession for the former home, as applicable. Certain qualifying new or resale HDB purchases may have the rates applied automatically, subject to IRAS’s conditions.
7. Do I Still Have to Pay Property Tax If My Second Property Is Vacant?
Yes.Property Tax is not based on whether the property generates rental income. It is calculated based on the property’s AV and the applicable tax rate.Therefore:• Property rented out → Property Tax is payable• Property occupied by the owner → Property Tax is payable• Property vacant → Property Tax is still payableThe absence of rental income does not, by itself, exempt a property from Property Tax.This is particularly relevant for investors. For example, if a condominium is vacant for three months, there is no rental income during that period, but Property Tax remains payable.
8. How Is Property Tax Calculated for HDB and Condo Ownership?
This is directly related to the issue of owning multiple properties.Assume:• First property: HDB flat, occupied by the owner• Second property: condominium, rented outTypically:HDB flat → Owner-Occupier Tax RatesCondominium → Non-Owner-Occupier Residential Tax RatesThe fact that the HDB flat is owner-occupied does not allow the rented condominium to be taxed at the owner-occupier rates as well.If the owner sells the HDB flat and moves into the condominium, they may apply for owner-occupier rates for the condominium based on their actual residence. If another property is already receiving the concession, the owner should update the applicable owner-occupier status with IRAS; the new property does not automatically qualify in every case.
9. When Is Property Tax Payable?
Property Tax is generally payable in advance for the year.IRAS usually sends property owners the following year’s annual Property Tax Bill towards the end of the preceding year. The annual bill is generally due by 31 January, or by the due date stated on the bill.[3]Property owners can choose to:• Pay the annual bill in one payment• Pay by instalments through GIROEligible property owners paying by GIRO can choose up to 12 interest-free monthly instalments or a one-time deduction.[3]Investors should therefore include Property Tax as a regular holding cost when calculating annual cash flow, rather than considering it only after receiving rental income.
10. When Does Property Tax Start After Purchasing a Property?
After a property is purchased, the buyer is responsible for Property Tax from the applicable tax-liability date. The buyer and seller may separately apportion the tax between themselves as part of the transaction.Newly completed properties are taxed from the date the Temporary Occupation Permit (TOP) is issued. IRAS may issue the bill after TOP, and the tax may cover the period starting from the TOP date—even if the buyer took possession or collected the keys later. The buyer should check the tax-liability date and any apportionment or reimbursement arrangements with their lawyer or the developer.
11. Can I Object If I Believe the AV Is Too High?
If an owner believes that IRAS has assessed the AV too high, they may object to the AV or its effective date. They cannot object to the tax rate simply because they consider it too high.For example, if market rents for comparable units are materially lower than the rental levels reflected in the assessed AV, the owner may submit supporting market evidence with the objection.An objection to a Valuation Notice must generally be submitted within 30 days of the notice date. If no Valuation Notice has been received for the current year, an owner may still object to the existing AV during the year if they can show that market rents have fallen below the assessed AV. Property Tax remains payable while an objection or appeal is being considered.A property being vacant or generating no rental income, or the owner considering the tax too expensive, is not by itself a valid basis for lowering the AV.
12. How Should I Calculate the Costs of Buying Multiple Properties?
If you are purchasing a second or third property, do not consider ABSD alone.One-off purchase costs:Property price + BSD + ABSD + legal fees + loan-related costsAnnual holding costs:Property Tax + mortgage interest + MCST management fees + maintenance costs + insurance + rental management feesNet rental income:Annual rental income − holding costs − vacancy-related lossesWhen assessing whether an investment property is worthwhile, focus on the net rental return after costs and tax, rather than the headline rental yield.
13. Five Key Takeaways About Property Tax in Singapore
The key points are:① Property Tax is calculated based on AV, not the property’s purchase price.② Owner-occupied and non-owner-occupied properties are subject to different tax rates; eligible owner-occupied properties generally receive lower rates.③ Owning multiple residential properties does not mean that every property can qualify for Owner-Occupier Tax Rates.④ Property Tax remains payable when a property is vacant and generating no rental income.⑤ For owners of multiple properties, Property Tax is a recurring holding cost and should be considered alongside ABSD, mortgage interest and management fees.Investors considering a second or third property should look beyond ABSD and assess the full cost of ownership, including BSD, Property Tax, mortgage costs, management fees and rental-related costs. These costs form part of the overall investment assessment.