Property tax in Singapore is a key source of revenue for the government and applies to both residential and non-residential properties. In 2025, new tax rate adjustments affect how much owners pay, especially for higher-value residential properties and commercial assets. This guide explains the latest property tax rates for 2025, how they are calculated, and tips for reducing your tax bill legally.
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🏠 1. Overview of Property Tax in Singapore
Property tax in Singapore is levied annually based on the Annual Value (AV) of the property, which is the estimated yearly rental value if the property were rented out. The tax rates differ depending on whether the property is:
- Residential owner-occupied
- Residential non-owner-occupied
- Non-residential (commercial/industrial)
📊 2. 2025 Property Tax Rates for Residential Properties
Owner-Occupied Residential Properties (Progressive Rates)
| 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% |
Non-Owner-Occupied Residential Properties
For non-owner-occupied residential properties (including investment properties), the rates are higher to discourage speculative holding:
| Annual Value (AV) | Tax Rate (2025) |
|---|---|
| First $30,000 | 12% |
| Next $15,000 | 20% |
| Next $15,000 | 28% |
| Above $60,000 | 36% |
🏢 3. Property Tax Rates for Non-Residential Properties (2025)
Non-residential properties such as commercial, industrial, and mixed-use spaces are taxed at a flat rate:
- Flat 10% of the Annual Value (AV) for 2025
🧮 4. How to Calculate Your Property Tax
Formula:
Property Tax Payable = Annual Value (AV) × 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 = $1,480
💡 5. Tips to Reduce Property Tax Legally
- Ensure your property is correctly classified as owner-occupied to enjoy lower rates.
- Check your Annual Value (AV) assessment and file an objection if it is overestimated.
- For mixed-use properties, apply for partial tax exemptions if eligible.
📌 6. Payment Deadlines
Property tax is due by 31 January each year. Late payments incur a 5% penalty, and further penalties may apply if unpaid.
📍 Final Thoughts
The 2025 property tax rates in Singapore reflect a progressive approach for residential properties and a straightforward flat rate for commercial and industrial properties. By understanding your applicable rate and leveraging tax relief options, you can keep your property tax bill as low as possible while remaining compliant.
