Property tax rates to rise in 2 steps from 2023
Property taxes rates for both owner-occupied and non-owner-occupied residential properties will go up in 2 steps starting from 2023, but analysts do not expect this to dent demand for homes.
The property tax rate for non-owner-occupied residential properties – which includes investment properties – will be hiked across the board: from 10-20 per cent presently, to 11-27 per cent from Jan 1, 2023 and 12-36 per cent from Jan 1, 2024.
High-end properties will see a steeper increase. For instance, the annual property tax payable for a suburban condominium or landed property with an annual value (AV) of S$30,000 will go up from S$3,000 under the current rates to S$3,300 in 2023 and S$3,600 in 2024.
The annual property tax for a large landed property with an AV of S$150,000 will increase from S$24,000 currently, to S$33,150 in 2023, and S$43,200 in 2024.
Meanwhile, the property tax for owner-occupied residential properties will go up for the portion of AV in excess of S$30,000: from 4-16 per cent today, to 5-23 per cent from 2023 and 6-32 per cent from 2024. "This increase will impact the top 7 per cent of owner-occupied residential properties," said Finance Minister Lawrence Wong during the Budget speech.
The increase will similarly be higher for properties at the top end. For instance, a condo in a central location or a landed property with an AV of S$40,000 will pay a property tax of S$1,380 in 2023 and S$1,480 in 2024. This is up from S$1,280 under the current rates. A large landed property with an AV of S$150,000 will pay a property tax of S$20,230 in 2023 and S$27,980 in 2024. This is up from S$12,580 currently.