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Understanding Singapore's property tax system is crucial for any property owner or investor in 2025. Property taxes in Singapore have undergone significant changes in 2025, with expanded zero-tax bands for owner-occupied properties and revised progressive rates that can substantially impact your annual tax bill depending on your property's Annual Value and occupancy status.
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Singapore property taxes in 2025 operate on a progressive system for residential properties, with owner-occupied homes enjoying significantly lower rates and an expanded $12,000 zero-tax threshold compared to 2024's $8,000.
Non-owner-occupied residential properties face much higher rates starting at 12%, while commercial and industrial properties are taxed at a flat 10% rate based on Annual Value.
| Property Type | Tax Structure | Key 2025 Changes |
|---|---|---|
| Owner-Occupied Residential | Progressive bands: 0%-32% | Zero-tax band increased from $8,000 to $12,000 |
| Non-Owner-Occupied Residential | Progressive bands: 12%-36% | Higher rates maintained |
| Commercial Properties | Flat 10% rate | No changes from 2024 |
| Industrial Properties | Flat 10% rate | No changes from 2024 |
| Payment Methods | GIRO, installments available | Online portal enhancements |
| AV Checking | Free via IRAS MyTax Portal | $2.50 fee for non-owned properties |
What type of property do I have and how do I determine my occupancy status?
Singapore's property tax system categorizes properties into four main types: owner-occupied residential, non-owner-occupied residential, commercial, and industrial.
For residential properties, the key distinction is occupancy status. Your property is considered owner-occupied if you live in it as your primary residence. If you rent it out, leave it vacant, or move out permanently, it becomes non-owner-occupied and faces significantly higher tax rates.
Commercial properties include office buildings, retail spaces, and shophouses used for business purposes. Industrial properties encompass factories, warehouses, and manufacturing facilities. Both commercial and industrial properties are taxed at a flat 10% rate regardless of occupancy.
To check your current occupancy status, log into the IRAS MyTax Portal at mytax.iras.gov.sg using your SingPass. Navigate to "View Property Summary" under the Property section to see how IRAS has classified your property.
You must promptly notify IRAS of any changes in occupancy status, such as moving out or starting to rent your property, as this directly affects your tax rate and annual bill.
How do I find my property's Annual Value for 2025?
Your property's Annual Value (AV) is the estimated annual rental income IRAS believes your property could generate based on current market conditions for similar properties.
The easiest way to check your AV is through the IRAS MyTax Portal at mytax.iras.gov.sg. After logging in with SingPass, go to "View Property Summary" where you can see both your current AV and historical values at no charge.
If you want to check the AV of a property you don't own, you can do so through the same portal for a $2.50 fee per property search.
IRAS typically revises Annual Values annually based on market rental trends. As of September 2025, many properties have seen AV adjustments reflecting Singapore's evolving rental market, particularly in prime districts and newer developments.
If you believe your AV is incorrect, you can appeal within 30 days of receiving your assessment notice by using the "Apply to Amend AV" function online, providing supporting documents like recent rental agreements or comparable property data.
What are the 2025 tax rates for owner-occupied versus non-owner-occupied properties?
Owner-occupied residential properties in Singapore benefit from significantly lower progressive tax rates compared to non-owner-occupied properties.
For owner-occupied homes, the 2025 rates start with a generous $12,000 zero-tax threshold, then progress through eight bands with rates ranging from 4% to 32% on the highest portion of AV above $140,000.
Non-owner-occupied residential properties face much steeper rates starting at 12% for the first $30,000 of AV, escalating to 36% for AV portions above $60,000. This structure reflects Singapore's policy of encouraging owner-occupation over investment speculation.
| AV Range | Owner-Occupied Rate | Non-Owner-Occupied Rate |
|---|---|---|
| First $12,000 / $30,000 | 0% | 12% |
| Next $28,000 / $15,000 | 4% | 20% |
| Next $10,000 / $15,000 | 6% | 28% |
| Next $25,000 / Above $60,000 | 10% | 36% |
| Next $45,000 | 14% | N/A |
| Next $15,000 | 20% | N/A |
| Next $40,000 | 26% | N/A |
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How do I calculate my exact 2025 property tax bill step by step?
Calculating your property tax involves applying the progressive rates to different portions of your Annual Value, similar to income tax brackets.
For an owner-occupied property with AV of $80,000, here's the step-by-step calculation for 2025:
First $12,000 × 0% = $0. Next $28,000 × 4% = $1,120. Next $10,000 × 6% = $600. Next $25,000 × 10% = $2,500. Remaining $5,000 × 14% = $700. Total annual property tax = $4,920.
For the same property classified as non-owner-occupied: First $30,000 × 12% = $3,600. Next $15,000 × 20% = $3,000. Next $15,000 × 28% = $4,200. Remaining $20,000 × 36% = $7,200. Total annual property tax = $18,000.
This example demonstrates the substantial difference in tax burden between owner-occupied and non-owner-occupied properties, with the non-owner-occupied property paying nearly four times more tax on the same Annual Value.
What changed from 2024 to 2025 and how do these changes affect my bill?
The most significant change in 2025 is the expansion of the zero-tax band for owner-occupied properties from $8,000 in 2024 to $12,000 in 2025.
All other tax bands for owner-occupied properties have also been widened, effectively reducing the tax burden for most homeowners. The second band now covers $28,000 instead of $25,000, and subsequent bands have been similarly adjusted.
These changes mean that if your Annual Value remained unchanged from 2024 to 2025, you will almost certainly pay less property tax in 2025. For example, a property with AV of $40,000 would save approximately $160-200 annually due to the expanded lower bands.
However, if IRAS revised your AV upward due to market conditions, the total impact on your bill depends on the magnitude of the AV increase versus the benefit of the new rate structure.
Non-owner-occupied residential and commercial/industrial tax rates remained unchanged from 2024, maintaining the policy emphasis on supporting owner-occupiers while maintaining revenue from investment properties.
Will I pay more or less in 2025 compared to 2024?
Most owner-occupied property owners will pay less tax in 2025 compared to 2024, assuming their Annual Value hasn't increased dramatically.
The expanded zero-tax threshold alone saves owners $160 annually (4% × $4,000 expansion), while the widened bands throughout the progressive structure provide additional savings for properties with higher AVs.
If your AV increased by less than 15-20% from market adjustments, you'll likely still pay less overall due to the more favorable 2025 rate structure. Properties with AV increases above 20% may face higher total taxes despite the improved rates.
Non-owner-occupied property owners won't benefit from rate changes, so any AV increase directly translates to higher taxes. Given Singapore's robust rental market in 2025, many investment properties have seen AV increases of 10-25%, resulting in proportionally higher tax bills.
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What special rules apply to non-owner-occupied residential properties?
Non-owner-occupied residential properties face significantly higher tax rates designed to discourage speculative investment and encourage owner-occupation.
The tax rates for non-owner-occupied properties start at 12% for the first $30,000 of AV and escalate rapidly to 36% for AV portions above $60,000, creating much higher annual tax bills compared to owner-occupied homes.
IRAS considers your property non-owner-occupied if you rent it out, leave it vacant for extended periods, or move out permanently. You must update your occupancy status in the MyTax Portal immediately when circumstances change.
To verify your occupancy status is correct, check the "Property Summary" section of your MyTax Portal account. If you need to change from non-owner-occupied to owner-occupied status, use the "Update Occupancy" function and provide proof such as utility bills or tenancy termination documents.
Failing to update your occupancy status promptly can result in overpaying taxes if you move back in, or underpaying if you move out, potentially leading to penalties and interest charges.
How do I calculate tax for commercial and industrial properties?
Commercial and industrial properties in Singapore are subject to a simple flat tax rate of 10% of the Annual Value, regardless of size, use, or occupancy status.
The calculation is straightforward: multiply your property's AV by 10% to determine your annual property tax bill. For example, a commercial property with AV of $150,000 pays exactly $15,000 in annual property tax.
This flat rate applies to all non-residential properties including office buildings, retail spaces, shophouses, factories, warehouses, and other industrial facilities. There are no progressive bands or exemptions for commercial/industrial properties.
Unlike residential properties, commercial and industrial property taxes don't vary based on owner-occupation, as the policy rationale for encouraging personal residence doesn't apply to business properties.
The 10% rate has remained unchanged from 2024 to 2025, providing predictability for business property owners and investors in Singapore's commercial real estate market.
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Are there any property tax rebates or reliefs available in 2025?
The primary relief for property owners in 2025 is the expanded progressive tax bands for owner-occupied residential properties, which effectively reduces tax bills for most homeowners.
Beyond the structural rate improvements, Singapore occasionally offers targeted rebates during economic downturns or as part of budget measures, but these are typically announced separately and are not permanent features of the tax system.
To check for current rebates or special reliefs, log into your IRAS MyTax Portal and look under "Property Tax Relief" or check the "Annual Value Threshold" section for any additional qualifying criteria or temporary measures.
HDB flat owners may qualify for additional considerations or payment assistance programs, which can be found in the HDB-specific sections of the IRAS website or through direct contact with HDB.
As of September 2025, no major one-off rebates have been announced beyond the beneficial rate structure changes, but property owners should regularly check the IRAS website for any new relief measures introduced throughout the year.
How does property tax relate to rental income taxation?
Property tax and income tax on rental income are completely separate tax obligations with different calculation methods and purposes.
Property tax is charged annually based on ownership of the property regardless of whether it generates rental income, remains vacant, or is owner-occupied. You pay property tax simply by owning real estate in Singapore.
Rental income is separately taxed as personal income under Singapore's income tax system, with rates depending on your total annual income and tax residency status.
Importantly, you can deduct your annual property tax payments from your rental income when calculating taxable rental profits, preventing double taxation on the same income stream.
For example, if you collect $36,000 in annual rent and pay $4,000 in property tax, you would only pay income tax on the $32,000 net rental income after deducting the property tax and other legitimate expenses like maintenance and agent fees.
When are property taxes due and what payment options are available?
Property tax payment deadlines are clearly stated on your Notice of Assessment from IRAS, typically issued in early January for the coming tax year.
IRAS offers several convenient payment options including GIRO automatic deduction, online banking, installment plans, and cash payments at authorized locations.
GIRO is particularly popular as it allows automatic monthly deductions spread throughout the year, making large tax bills more manageable for property owners.
If you miss payment deadlines, IRAS charges interest and penalties on outstanding amounts. The exact rates and penalty structure are detailed on your tax notice and the IRAS website.
For properties with high tax bills, installment arrangements can be requested through the MyTax Portal, allowing you to spread payments over several months rather than paying the full amount upfront.
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How do I appeal my assessment or update my property information?
If you believe your Annual Value assessment is incorrect or your property details need updating, IRAS provides online tools for appeals and corrections.
To appeal your AV, use the "Apply to Amend AV" function in the MyTax Portal within 30 days of receiving your assessment notice. You'll need supporting documents such as recent tenancy agreements, comparable property rental data, or evidence of property condition issues.
For occupancy status changes, use the "Update Occupancy" feature and provide proof such as utility bills showing your residence, tenancy agreements if renting out, or move-out documentation if changing status.
Common documents needed for appeals and updates include: NRIC identification, proof of occupancy or rental arrangements, tenancy agreements, sale and purchase agreements for ownership changes, and any relevant correspondence about property conditions.
IRAS typically responds to appeals within 30-60 days, and successful appeals can result in AV reductions and corresponding tax refunds for overpaid amounts.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Singapore's 2025 property tax system strongly favors owner-occupied residential properties with expanded zero-tax bands and progressive rates that can save homeowners hundreds of dollars annually compared to 2024.
Non-owner-occupied residential properties face substantially higher rates designed to discourage speculation, while commercial and industrial properties maintain a straightforward 10% flat rate on Annual Value.