The government has recently announced a one-time rebate for property taxes increasing in 2023. Learn more about the property tax increase by reading the full article below.
In 2023, property taxes will experience a revision following an annual assessment of the properties worth. This alteration is applicable to both HDB flats and private properties – so it’s essential for homeowners to keep up-to-date with taxation changes!
Eligible homeowners can enjoy a rebate of up to S$60
In a move to alleviate rising property tax costs, the Government has announced an unprecedented 60% rebate on 2023 taxes. This one-time incentive will cap out at S$60 for all owner-occupied properties, providing much-needed financial relief from expected increases in taxation.
Owner-occupiers with HDB flats of one or two rooms will enjoy a tax reprieve in the coming year, as their annual value remains lower than S$8,000. This was announced by the Ministry of Finance (MOF) and Inland Revenue Authority Singapore (IRAS) on Friday (2 Dec).
Property Tax for the majority of owner-occupiers in other HDB Flat Types
Most HDB owner-occupiers will see an increase in property tax from S$30 – S$70 compared to 2022. To help offset the impact, there is a rebate available to those who qualify.
On the other hand, homeowners in higher-value properties should expect a greater rise in their property tax following rebate adjustments.
Get a full understanding of the property tax situation by looking at the table below:
| Types of HDB | Property Tax Rebate In 2023 | The Increase in Annual Tax Payable After Rebate, from 2022 |
| 3-Room Flat | S$20.80 – S$40.00 | S$7.20 – S$30.40 |
| 4-Room Flat | S$107.20 – S$155.20 | S$33.60 – S$45.60 |
| 5-Room Flat | S$148.00 – S$196.00 | S$40.80 – S$52.80 |
| Executive Flat | S$176.80 – S$224.80 | S$55.20 – S$67.20 |
To add, with the rental market always fluctuating, determining a property’s annual value can be tricky. Using comparables from around the area helps to pinpoint an estimate of what rent could be collected each year – giving you an accurate figure for your investment’s worth.
Also, do note that homeowners can calculate their property taxes by multiplying the assessed annual value of their unit with an applicable tax rate.
Additionally, the latest data from the MOF and IRAS shows a remarkable 20% increase in market rents for HDB flats and private residential properties since January 1.
Take a look at the table below about the property tax rates:
| Owner-Occupier Tax Rates | |
| First S$8,000 of AV | 0% |
| Next S$22,000 of AV | 4% |
| Next S$10,000 of AV | 5% |
| Next S$15,000 of AV | 7% |
| Next S$15,000 of AV | 10% |
| Next S$15,000 of AV | 14% |
| Next S$15,000 of AV | 18% |
| Above S$100,000 of AV | 23% |
| Non- Owner-Occupier Tax Rates | |
| First S$30,000 of AV | 11% |
| Next S$15,000 of AV | 16% |
| Next S$15,000 of AV | 21% |
| Above S$60,000 of AV | 27% |
MOF and IRAS also announced that updated annual values would not impede the eligibility of Singaporeans for social support schemes, such as GST Voucher scheme, MediShield Life premium subsidies and Workfare Income Supplement Scheme. Also, eligibility in 2023 will be assessed based on the annual values of 2022.
As we move forward, the Government remains committed to providing assistance for those citizens who need it most. Continuing review and updates will ensure that our social support schemes are tailored to fit their needs.
We hope you have learned a few things about the property tax increase in 2023. Property owners, this is your reminder to stay ahead of the payment deadline – start getting ready to pay your property taxes! Your tax bills will arrive by the end of this month, so be sure they’re taken care of by Jan 31st, 2023. Also, do check out other articles here as we update regularly!