Annual Property Tax: How IRAS Computes It
Unlike stamp duty, which is a one-time cost at purchase, property tax is billed every year you own a property — whether you live in it, rent it out, or leave it vacant. Here's how IRAS works out the amount, and a worked example showing just how different the bill can be depending on who's living in the unit.
What Is Annual Value (AV)?
Property tax isn't based on what you paid for the property, or even its current market value. It's based on the Annual Value (AV) — IRAS's estimate of the gross annual rent the property could fetch if let out, unfurnished, on the open market. IRAS arrives at this figure by referencing actual rental transactions for comparable units — similar developments, similar sizes, similar floors — not your own asking rent if you happen to be renting it out. AV is reviewed periodically and can be revised up or down as market rents move; you'll be notified if it changes, and you can object if you believe it doesn't reflect genuine comparable rentals.
How Property Tax Is Computed
The calculation itself is simple — it's the rate schedule that does the work:
The rate isn't flat — it's progressive, rising in bands as the AV increases, much like income tax. And critically, there are two entirely different rate schedules depending on whether the property is owner-occupied or not, which is why two owners of an identical unit can end up with very different bills.
Property Tax Rates
Owner-occupied residential properties — where you or your family actually live — qualify for a much gentler rate schedule. Rent the unit out, leave it vacant, or own it as a second property, and it's taxed at the non-owner-occupier rate instead, which starts far higher and climbs faster. If you own two homes as a married couple, only one can carry the owner-occupier rate.
Owner-Occupier Rates
| Portion of Annual Value | |
|---|---|
| First $12,000 | 0% |
| Next $28,000 | 4% |
| Next $10,000 | 6% |
| Next $25,000 | 10% |
| Next $10,000 | 14% |
| Next $15,000 | 20% |
| Next $40,000 | 26% |
| Above $140,000 | 32% |
Non-Owner-Occupier Rates
| Portion of Annual Value | |
|---|---|
| First $30,000 | 12% |
| Next $15,000 | 20% |
| Next $15,000 | 28% |
| Above $60,000 | 36% |
Same Condo, Two Very Different Tax Bills
Take a condo unit with an Annual Value of $50,000 — a fairly typical figure for a mid-sized private condo. Here's what the annual property tax looks like, computed the same way IRAS does it, under each scenario.
Owner-Occupied
| Annual Value Band | |
|---|---|
| First $12,000 × 0% | $0 |
| Next $28,000 × 4% | $1,120 |
| Next $10,000 × 6% (AV $40,000–$50,000) | $600 |
| Total property tax | $1,720 |
Rented Out / 2nd Property
| Annual Value Band | |
|---|---|
| First $30,000 × 12% | $3,600 |
| Next $15,000 × 20% (AV $30,000–$45,000) | $3,000 |
| Next $5,000 × 28% (AV $45,000–$50,000) | $1,400 |
| Total property tax | $8,000 |
The identical $50,000 AV produces a bill of $1,720 if you live in it, versus $8,000 if it's rented out or held as a second property — nearly 4.7 times more. This is exactly why applying for owner-occupier status the moment you move in (and remembering to withdraw it if you move out) makes a real difference to your annual holding costs.
When & How Much You Actually Pay
Bills Issued in December
IRAS sends out the following year's property tax bill in December, with payment due by 31 January.
GIRO Instalments Available
Most owners pay via monthly GIRO deduction rather than one lump sum — set this up once and it recurs automatically each year.
Late Payment Penalty
Missing the deadline triggers an immediate 5% penalty on the unpaid amount, with further penalties possible for continued non-payment.
One-Off Rebates Can Apply
Budget announcements sometimes include a one-off rebate for owner-occupied homes — for 2026, this is 15% off for owner-occupied HDB flats, and 10% off (capped at $500) for owner-occupied private properties. It's applied automatically; no application needed.