Follow us on Telegram for the latest updates: https://t.me/mothershipsg

Those living in public housing three-room flats and bigger will pay higher property tax in 2022.

The Inland Revenue Authority of Singapore (IRAS) will be revising the annual values of Housing and Development Board (HDB) flats upwards by 4 per cent to 6 per cent with effect from Jan. 1, 2022, in line with the increase in market rentals, it announced on Dec. 1.

How much more?

Those not required to pay

With the revision in annual values, all one-room and two-room owner-occupiers, as well as about one-third of three-room owner-occupiers will continue to pay no property tax.

Those required to pay

About 65 per cent of three-room owner-occupiers will each pay between S$8.80 and S$14.40 more annually, increasing the tax burden to S$32.80.

The four-room, five-room and executive flats owner-occupiers will each pay between S$21.60 and S$26.40 more annually for property tax in 2022, increasing the amount to between S$73.60 and S$169.60.

The 2022 property tax payable for HDB flat owner-occupiers is summarised below:

HDB households' refuse collection fees will go up by S$1.38 to S$9.63 per month from 2022, it was announced on Nov. 30.

Why the need for annual value revision?

The annual value revision is part of IRAS’ annual review of properties to compute the property tax payable.

The annual value is the estimated annual rent of the property if it were to be rented out and it is determined based on the market rents of comparable properties.

The annual values of HDB flats had remained unchanged since it was last revised in 2017.

Rising market rents in 2021

However, with the rising market rents of HDB flats in 2021, the annual values of all HDB flats will need to be revised upwards from Jan. 1, 2022.

IRAS also reviews the annual values of private residential properties annually.

Private residential property owners will also see an increase in their annual values in 2022.

Progressive taxes

The property tax payable is derived by multiplying the property tax rate with the annual value of the property.

Owner-occupiers enjoy concessionary property tax rates ranging between 0 per cent and 16 per cent.

The property tax rates for those who rented out their flats range between 10 per cent and 20 per cent.

The tax rates are progressive, with higher value properties being taxed at higher rates.

The applicable tax rates for HDB flats are up to 4 per cent for owner-occupied flats and 10 per cent for non-owner-occupied flats.

When will tax bill come in?

IRAS said that all property owners will receive their property tax bill by the end of December 2021.

Property owners are reminded that bills must be paid by Jan. 31, 2022.

Property owners who face financial difficulties may approach IRAS for assistance on a suitable payment plan before Jan. 31.

They may appeal for a longer payment plan via the Apply for Payment Plan e-Service at myTax Portal website, or contact IRAS on its hotline at 1800 356 8300.

Top photo via Unsplash

Follow and listen to our podcast here