SINGAPORE – Most home owners will have to pay higher property tax in 2023, as the authorities raise the annual value of most residential properties to reflect the increase in rentals.
To offset this, the Government will provide a one-off tax rebate of up to $60 for all owner-occupied properties, said the Ministry of Finance (MOF) and Inland Revenue Authority of Singapore (Iras) in a joint statement on Friday.
The annual value of most private residential properties and Housing Board flats will be raised from Jan 1, 2023, as part of Iras’ annual review of properties to calculate how much taxes should be paid, the authorities said.
All one-room and two-room flat owners will continue to pay no property tax as the annual value of their homes remain below $8,000.
The majority of those living in other HDB flat types will pay between $30 and $70 more in property tax compared to 2022, after taking into account the rebate, said the authorities.
Those living in three-room flats will each pay between $7 and $30 more after the rebate, while those staying in four-room, five-room and executive flats will each pay between $33.60 and $67.20 more.
Iras monitors market rental trends to determine the annual value of properties. Since the last revision of annual values, rents of HDB flats and private homes have risen by more than 20 per cent, the authorities said.
A property’s annual value is its estimated annual rent if it were to be rented out, and is determined based on the market rents of comparable properties.