Home Latest News HDB owners to face higher property tax next year

HDB owners to face higher property tax next year

by admin

The property tax payable will increase next year, alongside the revision of the annual value (AV) of HDB flats by 4% to 6%.

Most owners of three-room and larger Housing and Development Board (HDB) flats will have to face higher property tax next year.

This comes as the Inland Revenue Authority of Singapore (IRAS) announced on Wednesday (1 December) that the annual values (AVs) of HDB flats will be revised upwards by 4% to 6%, in line with the hike in market rentals.

To take effect from 1 January 2022, the revision is part of the authority’s annual review of properties to determine property tax payable.

“The property tax payable is derived by multiplying the property tax rate with the AV of the property,” said IRAS.

With the revision, all one- and two-room owner-occupiers will not be required to pay property tax.

Similarly, one in three three-room owner-occupiers of HDB flats will not also be required to pay such tax.

Meanwhile, around 65% of three-room owner-occupiers “will each pay between $8 and $14 more annually, while the four-room, five-room and executive flats owner-occupiers will each pay between $21 and $26 more annually for property tax in 2022”.

IRAS explained that the AV is the property’s estimated annual rent if it were rented out and is determined based on comparable properties’ market rents.

“The AVs of HDB flats had remained unchanged since its last revision in 2017. However, with the rising market rents of HDB flats in 2021, the AVs of all HDB flats will need to be revised upwards from 1 January 2022,” it said.

It pointed that owner-occupiers enjoy concessionary property tax rates of between 0% and 16%, while those who rent out their flats face property tax rates of between 10% and 20%.

“The tax rates are progressive, with higher value properties being taxed at higher rates,” said IRAS.

“The applicable tax rates for HDB flats are up to 4% for owner-occupied flats and 10% for non-owner-occupied flats.”

The property tax bills will be received by property owners by end-December this year.

IRAS reminded property owners to pay their property tax for next year by 31 January 2022.

“There will be a 5% penalty imposed for property owners who fail to pay or have not arranged to pay their tax via GIRO instalments by the due date,” it said.

Those facing financial difficulties can approach IRAS for assistance, it added.

Looking for a property in Singapore? Visit PropertyGuru’s ListingsProject Reviews and Guides.

Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: [email protected].

You may also like

error: Content is protected !!