Property tax payment in Singapore: A complete guide

Key Takeaways 

• Property tax is an annual levy imposed by IRAS on property owners in Singapore, based on the property’s Annual Value (AV), regardless of whether it is occupied or vacant.
• The legal responsibility to pay property tax falls on the property owner, even if the property is rented out. 
• Singapore uses a tiered tax system where rates increase with the property’s AV. Different tax rates apply to owner-occupied and non-owner-occupied residential properties.
• Unlike residential properties, commercial and industrial buildings are taxed at a flat rate of 10% of their AV, without owner-occupier discounts.
• Property tax bills are issued in December each year, and full payment must be made by 31 January of the following year to avoid penalties.
• IRAS offers multiple payment options, including GIRO (monthly or lump-sum deductions), PayNow QR, AXS stations and Internet banking.
• A 5% penalty applies to unpaid property tax beyond the due date. IRAS may appoint banks, employers or tenants as agents to recover outstanding amounts.
• Foreigners who own property in Singapore are subject to the same property tax rules as local owners but may also incur Additional Buyer’s Stamp Duty (ABSD) when purchasing residential properties.

The process of buying a property in Singapore does not end when you hand over that hefty downpayment. As a property owner, you are also responsible for the property tax payment: a recurring financial obligation based on the value of your property.

Whether you own a private residence, an HDB flat or an investment property, understanding how property tax is calculated and when payments are due is important for staying compliant and avoiding penalties. 

In this guide, we’ll break down how Singapore’s property tax system works, the different tax rates and what you need to do to stay on top of your payments.

What is Property Tax? 

Property tax is an annual tax imposed by the Inland Revenue Authority of Singapore (IRAS) on property owners in Singapore. It is based on the annual value (AV) of the property, which represents its estimated rental income if it were rented out. 

Unlike other homeownership costs, such as mortgage payments or maintenance fees, property tax is a mandatory government levy that applies regardless of whether the property is occupied or vacant.

The primary purpose of property tax is to generate revenue for public services and infrastructure, including housing, education, healthcare, transportation and road maintenance.

The Difference Between Property Tax and Other Taxes 

While property tax is an important financial obligation, it differs from other taxes that property buyers and owners may encounter:

Income tax is levied on an individual’s earnings from employment, business or investments, whereas property tax is based on a property’s annual rental value and applies regardless of the owner’s income level.

Stamp duty is a one-time tax you pay when buying a property. On the other hand, property tax is a yearly obligation that continues as long as you own the property.

If you are dealing with large currency transfers for real estate investments, it’s important to factor in both costs.

Who Has To Pay Property Tax in Singapore?

In Singapore, the responsibility for paying property tax generally falls on the property owner. Here’s a breakdown:

Owner-Occupied Residential Properties 

The owner is liable for property tax. This applies whether it’s a landed house, condominium or HDB flat.

When a property has multiple owners, IRAS treats the distribution of property tax payments as an internal matter. As long as the tax is paid in full, they don’t intervene in how owners divide the cost. However, this also grants IRAS the legal authority to pursue any or all owners for the entire unpaid amount.

Rented-Out Properties 

Even if the property is rented out, the legal owner remains responsible for paying the property tax. The owner cannot legally transfer the tax liability to the tenant. 

However, sometimes the rental agreement may include clauses, such as the tenant reimbursing the owner for property tax. This is a private agreement between the owner and the tenant.

Commercial and Industrial Properties 

Businesses or individuals who own commercial or industrial buildings must pay property tax, regardless of whether they occupy or lease them.

Foreign-Owned Properties 

Even if you are not a Singapore citizen or resident, you are still required to pay property tax on properties you own in the country.

How is Property Tax Calculated?

Singapore’s property tax employs a tiered system, much like income tax, where the tax rate increases with the property’s Annual Value (AV). Moreover, the specific tax rates and AV brackets are adjusted based on whether the property is owner-occupied or rented out.

In a nutshell, three key factors determine the amount of property tax payable:

1. The property’s Annual Value (AV).
2. Whether the property is owner-occupied or non-owner-occupied.
3. The applicable property tax rate.

Before making large money transfers to pay property tax, make sure that you understand these calculations. Let’s take a closer look at them below.

Owner-Occupier Property Tax Rate 

When the property owner lives within their condominium, HDB flat or other residential property, it’s considered owner-occupied.

 Here is a breakdown of the 2025 tax rates for owner-occupied properties: 

Annual Value ($)	Tax rate effective from January 01, 2025	Property Tax Payable
First $12,000Next $28,000	0%4%	$0$1,120
First $40,000Next $10,000	-6%	$1,120$600
First $50,000Next $25,000	-10%	$1,720$2,500
First $75,000Next $10,000	-14%	$4,220$1,400
First $85,000Next $15,000	-20%	$5,620$3,000
First $100,000Next $40,000	-26%	$8,620$10,400
First $140,000Above $140,000	-32%	$19,020

Source: IRAS Official Website

For example, if you live in an executive condominium unit with an annual value of $40,000, here’s how the tax is calculated:

• First $12,000: 0% = $0
• Next $28,000: 4% = $1,120

This means that you should pay $1,120 in property taxes.

Non-Owner-Occupier Residential Tax Rates (Residential Properties) 

If a property owner does not live in their condominium, HDB flat or other residential property, it is considered non-owner occupied and taxed accordingly. These properties are typically rented out or held as investments.

Annual Value ($)	Effective January 01, 2024	Property Tax Payable
First $30,000Next $15,000	12%20%	$3,600$3,000
First $45,000Next $15,000	-28%	$6,600$4,200
First $60,000Above $60,000	-36%	$10,800

Source: IRAS Official Website

Imagine a large apartment rented out, with an annual value of $80,000. Here’s the tax calculation:

• First $30,000 at 12%: $30,000 × 12% = $3,600
• Next $15,000 at 20%: $15,000 × 20% = $3,000
• Next $15,000 at 28%: $15,000 × 28% = $4,200
• Remaining $20,000 at 36%: $20,000 × 36% = $7,200
• Total Property Tax: $3,600 + $3,000 + $4,200 + $7,200 = $18,000

However, certain properties are excluded from the non-owner-occupied residential tax rates. These include:

• Accommodation facilities within sports and recreational clubs
• Chalets
• Child care centres, student care centres or kindergartens
• Welfare homes
• Hospitals, hospices, or facilities for rehabilitation, convalescence, or nursing care
• Hotels, backpackers’ hostels, boarding houses or guest houses
• Serviced apartments
• Staff quarters within properties exempted under Section 6(6) of the Property Tax Act
• Student boarding houses or hostels
• Workers’ dormitories

Commercial and Industrial Properties (Non-Residential) 

Unlike residential properties, which may have varying tax rates, non-residential properties such as commercial and industrial buildings are taxed at a flat 10% of their Annual Value. Even if owner-occupied, these properties do not qualify for owner-occupier residential tax rates.

Say you own an office space with an annual value of $100,000, the property tax payable would be $10,000 ($100,000 x 10%).

What Happens When You Own and Occupy More Than One Property?

Keep in mind that only your primary residence qualifies for owner-occupier tax rates. If you own multiple properties, even if you reside in them, only one will receive the preferential rate; the rest will be taxed as non-owner-occupied.

When and How To Pay Property Tax in Singapore

When paying property taxes, you should follow the annual billing cycle and payment deadlines:

• Billing Date: Property tax bills are issued in December for the following year.
• Payment Deadline: The tax must be paid in full by 31 January of the assessment year.

For example, your 2025 property tax bill will be sent in December 2024, and payment must be made by 31 January 2025. Late payments may result in penalties, so it’s important to settle your dues on time.

If you’re experiencing financial hardship, you can request an extended payment plan through the ‘Apply for payment plan‘ e-service on the myTax Portal, accessible with your Singpass.

How to Pay Property Tax 

IRAS offers several convenient property tax payment methods to ensure a smooth and hassle-free transaction.

GIRO is the most efficient way to pay your property tax as it allows automatic monthly deductions from your bank account.

• One-time Setup: Apply via your bank’s online banking portal or through IRAS’ myTax Portal.
• Monthly Deductions: Payment is spread across 12 interest-free instalments, or you can opt for a one-time deduction on January 6 of the payment year.
• Processing Time: Approval usually takes 14 working days.

To ensure your property tax is successfully deducted via GIRO, please verify that your bank account has sufficient funds on the deduction date and that your payment limit is adequate. Be aware that some banks may charge fees for failed GIRO transactions.