Property tax in Singapore is a recurring cost for property owners, but the amount payable depends heavily on whether the property is classified as owner-occupied or non-owner-occupied. The Inland Revenue Authority of Singapore (IRAS) applies different progressive tax bands to these categories, with the aim of encouraging home ownership and deterring speculative property holding. This guide explains the latest 2025 property tax bands, how they are calculated, and how to ensure you are paying the correct rate.
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🏠 1. Understanding the Property Tax System
Singapore’s property tax is calculated based on the Annual Value (AV) of the property — an estimate of its yearly rental value if it were rented out, regardless of whether it is owner-occupied or not. The AV is assessed by IRAS and reviewed periodically to reflect market conditions.
📊 2. Tax Bands for Owner-Occupied Properties
Owner-occupied properties enjoy lower property tax rates because they are used as the owner’s principal place of residence. The progressive bands from 2025 are:
| Annual Value (AV) | Tax Rate (2025) |
|---|---|
| First $8,000 | 0% |
| Next $22,000 | 4% |
| Next $10,000 | 6% |
| Next $15,000 | 10% |
| Next $15,000 | 14% |
| Above $70,000 | 16% |
🏢 3. Tax Bands for Non-Owner-Occupied Properties
Non-owner-occupied residential properties (including investment properties and second homes) are subject to higher property tax rates. This higher banding is meant to encourage optimal use of housing stock.
| Annual Value (AV) | Tax Rate (2025) |
|---|---|
| First $30,000 | 12% |
| Next $15,000 | 20% |
| Next $15,000 | 28% |
| Above $60,000 | 36% |
🧮 4. How to Calculate Property Tax
The formula is:
Property Tax = (Portion of AV in each band) × (Applicable tax rate)
Example for an owner-occupied property with an AV of $40,000:
- First $8,000 × 0% = $0
- Next $22,000 × 4% = $880
- Remaining $10,000 × 6% = $600
- Total Tax Payable = $1,480
💡 5. How to Qualify for Owner-Occupier Rates
- You must own the property and physically reside in it as your principal home.
- Apply for the owner-occupier tax rate via the myTax Portal on IRAS’ website.
- If you move out and rent the property, inform IRAS to avoid penalties for incorrect classification.
📌 6. Key Payment Deadlines
The property tax bill is issued in December and payment must be made by 31 January the following year. Late payments attract a 5% penalty.
📍 Final Thoughts
Understanding the difference between owner-occupier and non-owner-occupier property tax bands can save you a significant amount each year. By ensuring your property is correctly classified and staying updated with IRAS changes, you can avoid overpaying and remain compliant with Singapore’s property tax regulations.
