One-off rebate for owner-occupied homes in 2024 to cushion impact of property tax rises: MOF, Iras - TODAY

Owner-occupiers of one-room and two-room Housing and Development Board (HDB) flats will be given a 100 per cent rebate for their property tax.

“With the property tax rebate, all one- and two-room HDB owner-occupiers will continue to pay no property tax in 2024,” MOF and Iras said in the joint statement.

Owner-occupiers of these small flats did not have to pay property tax this year as their annual values remained below S$8,000.

The rebates are stepped down progressively for bigger public flats, with executive HDB flats getting a 30 per cent rebate.

Owner-occupiers of private properties will receive a 15 per cent rebate, capped at S$1,000.

The rebates will be automatically offset against any property tax payable.

MOF and Iras said that owner-occupiers of three-room or bigger public flats can expect to pay an average of between S$1.50 and S$6.30 more property tax a month after taking into account the rebate.

“The bottom half of private property owner-occupiers (by annual value) will experience a property tax increase of less than $15 per month,” MOF and Iras said.

“The increase in property tax will be higher for those with higher value properties.”

HIGHER EXPECTED PROPERTY TAX REVENUE

In Budget 2022, an increase in property taxes — Singapore’s principal means of taxing wealth — was announced, to take into effect in two steps in 2023 and 2024.

For owner-occupied residential properties, the property tax for the portion of annual value in excess of S$30,000 will be increased from the previous range of between 4 per cent and 16 per cent in 2022 to between 6 per cent and 32 per cent by 2024.

Finance Minister Lawrence Wong said then that when fully implemented, the changes will raise Singapore’s property tax revenue by about S$380 million a year.

Given the rising annual value of property, TODAY has asked MOF and Iras how much more revenue is expected.

In the announcement on Thursday, they said that the rebates for owner-occupied residential properties will be rolled out to cushion the impact of the higher property tax.

“The rebate is tiered to ensure that our property tax regime remains progressive, and those with greater means pay their fair share of taxes,” they added.

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