Homeowners can look forward to some relief in 2025, with the government introducing a one-off property tax rebate. This initiative aims to ease the financial burden for owner-occupied properties amid rising cost-of-living concerns.
Rebate Details
- HDB Flats: A 20% rebate for owner-occupied units.
- Private Residential Properties: A 15% rebate, capped at $1,000.
These rebates will automatically offset property tax bills and apply to all eligible properties, according to a joint statement from the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS).
Lower Tax Bills for Most Homeowners
In addition to the rebate, changes to annual value bands for owner-occupied homes will kick in from January 1, 2025. The annual value threshold for zero percent tax will increase from $8,000 to $12,000. This means:
- All one- and two-room HDB flats will remain exempt from property tax.
- For other HDB flats, property tax will be calculated at a marginal rate of 4% for the portion of the annual value above $12,000.
These adjustments ensure all HDB flats and over 90% of private residential properties will enjoy lower tax bills next year.
Understanding Property Tax
Property tax is based on a property’s annual value, which reflects the estimated rental income it could fetch in a year. By raising the annual value threshold and providing rebates, the government is helping homeowners manage their expenses while maintaining Singapore’s fair and progressive tax system.
This rebate will automatically be applied, so homeowners don’t need to take any action.