6 Compelling Reasons Why 3-Bedroom Condos Might Shrink Further
TLDR Three-bedroom units in Singapore have significantly downsized from 1,700-1,800 sq. ft. in the 1980s to around 1,000 sq. ft....
Read More
TLDR
Understanding your property’s annual value is crucial for determining property taxes in Singapore. The annual value is based on the estimated gross annual rent, excluding furniture and maintenance fees. You can check this value via the IRAS website using SingPass. Property tax rates differ for owner-occupied and non-owner-occupied properties. For owner-occupied homes, rates range from 0% to 32%, depending on the property’s annual value. Non-owner-occupied properties have higher rates, starting at 12%. The annual value also affects eligibility for schemes like the GST Voucher. For property owners, staying informed about these values and tax rates is essential for financial planning.
As a proud property owner, understanding the annual value of your asset is essential. This is because property taxes in Singapore are calculated based on this value. Even if you’re not currently a homeowner, there may come a time when you too will need to pay these taxes.
Therefore, it is crucial to familiarize yourself with the process of determining your property’s annual value. And with the recent Budget 2024 announcement of reduced property tax rates, the news couldn’t be better for all property owners.
In fact, we’re here to guide you through the latest tax rates and how to easily access your property’s annual value in Singapore. And if you’re curious about the current value of your property, our innovative property valuation tool can provide you with an accurate estimate. Stay informed and make the most of your property ownership journey!
Annual Property Value in Singapore: A Comprehensive Guide
| What does annual value mean? | It is the estimated gross annual rent that you can rent your property out for (excluding furniture, furnishings, and maintenance fees) |
| How to check the annual value of a property? | Log in with your SingPass via the IRAS website |
| How does IRAS calculate property annual value? | IRAS’s five considerations for determining annual value: – Rentals of similar properties in the area – Property size – Property location – Property condition – Other relevant physical attributes |
| How to calculate the annual value of your property on your own? | You can make an estimate based on the property rentals around your area |
Property Annual Value and Its Tax Implications
Many people mistakenly believe that the worth of a property in Singapore is directly linked to its valuation. However, this is far from the truth. In fact, the property’s annual value, as defined by the IRAS, is a completely separate entity. It refers to the estimated annual rent of the property, excluding any additional expenses for furniture, furnishings, and maintenance fees.
While this may seem like a simple concept, the key word here is “estimated”. The government is not concerned with the actual rental income you receive, but rather with the perceived value of the property in the market.
This means that even if you rent out your property at a lower rate than the average market price, your annual value will remain the same as other similar properties. As a result, you will still be subject to the same amount of property tax.
To get a better understanding of the property tax rates, you can refer to this resource. Keep in mind, however, that the rates for non-owner-occupied properties are significantly higher compared to owner-occupied ones. This applies to both HDB flats and private properties alike.
How to Check the Annual Value of Property in Singapore
With the IRAS holding the final say on the annual value of your property, it serves as the ultimate authority to consult. Don’t waste time searching elsewhere; just head over to myTax Portal and use your SingPass to easily access your property’s annual value. Keep track of the current year and the past five years whenever it suits you.
But the benefits don’t end there – annual values can also offer insight into rental rates for a particular area, aiding in your decision-making process for renting or purchasing. And if you’re curious about other properties, the portal allows you to retrieve their annual values for a nominal fee of $2.50 per search.
But fret not, you can still obtain general annual value statistics for free through online resources. And let’s just say, the contrast between private properties and HDB flats is quite eye-opening.
Thankfully, IRAS simplifies things by providing a comprehensive breakdown of property tax based on annual value for owner-occupied residential properties. Whether you reside in an HDB flat, condo, or any other residential property, this applies to you. Let IRAS take the wheel and guide you through the realm of property taxes.
Owner-Occupier Tax Rates in Singapore (2024)
| Annual value for owner-occupied residential properties | Property tax rate effective 1 January 2024 |
| First $8,000 | 0% |
| Next $22,000 | 4% |
| Next $10,000 | 6% |
| Next $15,000 | 10% |
| Next $15,000 | 14% |
| Next $15,000 | 20% |
| Next $15,000 | 26% |
| Above $100,000 | 32% |
Source: IRAS
“Like a seesaw, the higher your annual value, the heavier the tax burden. But fear not, dear HDB-dwelling Singaporeans, for your average property value keeps you safely on the lower end of the scale.
In the grand unveiling of Budget 2022, a “wealth tax” loomed over the horizon. However, with rental demand and prices soaring to new heights, the annual value of properties in Singapore rose accordingly. This prompted the much-needed revision in Budget 2024, as the weight of property taxes for owner-occupied residences doubled in response to the dramatic increase.”
Owner-Occupier Tax Rates In Singapore (2025)
| Annual value for owner-occupied residential properties | Property tax rate effective 1 January 2024 |
| First $12,000 | 0% |
| Next $28,000 | 4% |
| Next $10,000 | 6% |
| Next $25,000 | 10% |
| Next $10,000 | 14% |
| Next $15,000 | 20% |
| Next $40,000 | 26% |
| Above $140,000 | 32% |
Source: IRAS
Non-Owner-Occupier Tax Rates
| Annual value for non-owner-occupied residential properties | Property tax rate effective 1 January 2024 |
| First $30,000 | 12% |
| Next $15,000 | 20% |
| Next $15,000 | 28% |
| Above $60,000 | 36% |
Source: IRAS
The property tax rate for unoccupied properties may be subject to slight variations, as seen in the latest Budget 2024 announcements. However, determining the non-owner-occupier tax rates can be a bit of a puzzle. While rental data for similar properties in the vicinity is readily available, the challenge lies in accurately estimating expenses for furniture, furnishings, and maintenance.
For instance, you may consult PropertyGuru’s rental listings and find that comparable units are leasing for $3,000 per month. However, your estimated allowance of $1,000 for furniture, furnishings, and maintenance is deemed unreasonable by the Inland Revenue Authority of Singapore (IRAS). Instead, they inform you that the annual value of your property is $30,000, with an allowance estimate of only $500 per month.
If you disagree with the government’s assessment, fear not. You can easily file an objection through the myTax portal, ensuring to include the Notice Number from your latest property tax notice.
Do keep in mind, however, that while the first objection is free, subsequent appeals to the Valuation Review Board will incur a fee of $50 (for owner-occupied properties) or $200 (for non-owner-occupied properties) each time. Hence, only owners of commercial or industrial properties are likely to pursue such appeals.
Other Uses of Property Annual Value (That Don’t Involve Paying Money)
The annual value of your property may seem like a mere determinant of your property taxes, but as we highlighted earlier, its impact goes beyond that. In fact, the government also takes into consideration this value as a reflection of your financial status, opening up opportunities for various incentives to come your way.
For instance, the esteemed GST Voucher Scheme caters to individuals with assessable incomes up to $34,000 and homes with an annual value not exceeding $25,000, making it a beneficial boost for eligible citizens.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Top 5 Street Food Markets in Singapore
Singapore, a melting pot of diverse cultures, offers an incredible array of street food that tantalizes the taste buds of...
Read More
Unlock The Key To Selling A Home With A Perceived Disadvantage Like Being West-Facing Or Close To A Rubbish Chute – Here’s How!
TLDR When selling your house, turn perceived disadvantages into advantages. For sun-facing homes, use UV sheets and blinds to manage...
Read More
Top 5 : Places to Learn About Singapore’s History
Singapore, a bustling metropolis known for its modernity and multiculturalism, is also a treasure trove of rich history and heritage....
Read More
Top 5 Reasons : Why Do Singaporeans Still Flood The Property Market?
Singapore, a thriving city-state with a robust economy and a strong demand for real estate, has always been an attractive...
Read More
Discover the Best Breakfast in Singapore: Top 5 Must-Try Spots!
Trying out some of the best breakfast places, I've put together a list of the top 5 must-try breakfast spots...
Read More
From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds
From Overseas to Singapore Property: 5 Steps Guide to Remitting Funds 1. The first step in remitting money to Singapore...
Read More
The Top 5 Myths About Buying Property in Singapore – Debunked!
The Top 5 Myths About Buying Property in Singapore – Debunked! Here are the top 5 myths about buying property...
Read More
Top 5 Factors to Look for in a Property Developer
With a highly competitive property market, it's crucial to choose a property developer that you can trust to deliver quality...
Read More
3 Steps to Protect Yourself from Real Estate Scams in Singapore
Lately, there has been an increase in scams related to real estate. Scammers are pretending to be real estate agents...
Read More
Buying a Mega Development Condo? Here are 5 Overlooked Issues You Should Know
TLDR In the world of mega-developments, living in a large condo with over 700 units can bring challenges like ongoing...
Read More
Making Sense of 99-Year Landed Home Investments in Singapore
TLDR Investing in a 99-year leasehold landed property in Singapore can be a lucrative venture due to the country's land...
Read More
Debunked! 6 Popular Property Myths of 2023, Including the 99-1 Loophole – Legal or Not?
TLDR This blog post delves into various aspects of the Singapore property market, including topics such as decoupling, 99-1 property...
Read More
Top 5 Rooftop Pools in Singapore for a Swim
Singapore, a bustling city-state known for its iconic skyline and innovative architecture, is home to some of the most stunning...
Read More
Why Can’t We Buy Low, Sell High?
Madam Tan voiced that approximately two years ago, when her apartment hit its minimum occupation period, she and her spouse...
Read More
Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market
Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...
Read More
5 Insider Tips From Real Estate Experts On How To Get The Best Deal On Property In Singapore
Investing in property can be a great way to build wealth and secure your financial future. However, with Singapore's highly...
Read More
Ready To Make The Jump From HDB To Condo? This Guide Has All The Answers!
TLDR When upgrading from an HDB flat to a condo, consider factors like location proximity, amenities, and regulations. Decide whether...
Read More
5 Techniques for Identifying Undervalued Properties in Singapore 2023
TLDR To spot undervalued properties in Singapore's real estate market, focus on market value, location, and unique features. Consider "up...
Read More
Discover the 3 Top Factors Impacting HDB Resale Valuation in Singapore: What Every Buyer Must Know!
TLDR The blog post discusses the increased demand for HDB resale flats and the impact on prices. It emphasizes the...
Read More
