Increase in property tax for HDB 3-room flats and above

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SINGAPORE: All one- and two-room owner-occupiers of HDB homes do not need to pay property tax in 2013, similar to 2012.

For a majority of other HDB flat types, the property tax bill for 2013 will increase by between S$40 and $50, after taking into account a new S$40 rebate.

The increase in property tax comes after the revision of Annual Values (AVs) of HDB flats with effect from 1 January 2013, reflecting the rise in market rentals.

To mitigate the increase in the property tax payable by lower and middle-income households as a result of the AV revision, the government will give a one-off rebate of S$40 to owner-occupied HDB flats.

The Inland Revenue Authority of Singapore (IRAS) reviews the AVs of all properties - including HDB flats - annually.

The AV, which is based on the estimated annual market rent of a property if it were to be let out, applies to all homes, including owner-occupied homes. It is used as a basis to compute the property tax payable.

Property tax is calculated at 10% of the AV for non owner-occupied homes. For owner-occupied homes, the property tax payable is calculated based on concessionary tax rates (see table).



Since the last revision of AVs of all HDB flats on 1 January 2012, market rentals of HDB flats have risen by 8% to 13%. Accordingly, the AVs of all HDB flats will be revised from 1 January 2013.

To mitigate the impact of the increase in property tax payable, all owners of owner-occupied HDB flats will be given a one-time rebate of S$40. It will be automatically set off against the property tax payable in 2013. This rebate will not apply to non owner-occupied HDB flats which are currently taxed at 10%.

94% of HDB flat owners will receive this rebate.

All one- and two-room HDB owner-occupiers will not need to pay any property tax in 2013 as their revised AVs remain below S$6,000.

The revised property tax bills of other owner-occupied flat types, after taking into account the property tax rebate, are shown in the table below.




Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
Email: marshe_inc@yahoo.com.sg
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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