Property tax to increase for most homes in 2023; Government will provide one-off rebate

December 2, 2022
Posted in News
December 2, 2022 veps

Property taxes will go up in 2023, following a yearly review of the properties’ annual values which is used to compute the tax.

The revision will affect both Housing Board (HDB) flats and private properties.

To mitigate the increase, the Government will provide a one-off 60 per cent property tax rebate for all owner-occupied properties, up to a maximum of S$60. This will be automatically offset against any property tax payable in 2023.

One- and two-room HDB owner-occupiers will continue to pay no property tax next year as their annual values remain below S$8,000, said the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS) in a media release on Friday (Dec 2).

“For the majority of owner-occupiers in other HDB flat types, they will pay between S$30 and S$70 more in property tax compared to 2022, after taking into account the rebate,” they added.

The increase in property tax after the rebate will be higher for those who own more expensive properties.

“As announced in Budget 2022, the property tax rates for 2023 will be made more progressive from Jan 1, 2023, with higher-value and non-owner-occupied residential properties being taxed at higher rates,” MOF and IRAS said.

The revision in the annual values of properties reflects the rise in market rents, said the authorities.

The annual value of a property is the estimated rent that could be collected annually if it were to be rented out, and it is determined based on the market rate of comparable properties.

The property tax payable is derived by multiplying the property tax rate with the annual value of the unit.

Since the last revision of annual values on Jan 1 this year, market rents of HDB flats and private residential properties have risen by more than 20 per cent, MOF and IRAS said.

“Residential property annual values will be revised accordingly from Jan 1, 2023, to reflect this,” they added.

The revision of annual values will not affect eligibility for social support schemes such as the GST Voucher scheme, MediShield Life premium subsidies and the Workfare Income Supplement Scheme, MOF and IRAS said.

Annual values as of 2022 will be used to determine eligibility in 2023.

“The Government will continue to review our social support schemes to ensure that Singaporeans in need of support receive it,” MOF and IRAS said.

Property owners will receive their property tax bills by the end of this month. Property tax payments must be made by Jan 31, 2023.

Source: channelnewsasia