The government expects property tax revenue in 2024 to grow by S$600,000,000, or more than the S$380,000,000 projected.
As announced in Budget 2022 property taxes will increase for owner-occupied properties and non-owner-occupied properties with high values. The second, and final, step of the hike went into effect on January 1, when tax rates increased to 12 to 36 percent.
When asked if they would consider implementing differential rates of tax for retirees without income, the government said that it will examine how to help seniors as well as other families facing a steep increase in property taxes.
To ease the pain, the government is offering a one-time rebate up to 100% for owner-occupied Housing and Development Board units and a 15% rebate for private home owners, with a cap of S$1,000. This property tax refund may not have as much impact if you live in an extremely large home and your AV rating is high.
Singapore’s property tax revenue for this year is expected to rise by S$600 million, with the non-owner occupied homes making up two-thirds.
It is more than we originally thought when we discussed the issue in Budget 2020. When implemented fully, the property tax increase will result in an annual revenue increase of about S$380 millions.
The property taxes collected in FY2022 (ending March 2023) were S$5.1 billion. That’s an increase of 9.1 per cent compared to FY2021.
Annual values (AVs) rose along with rents in both public and private housing. Rents for private residential property grew by 8.7% in the fourth-quarter of 2023, according to the latest Urban Redevelopment Authority data
Property taxes are calculated on the basis of AVs. They are revised annually based on estimated annual rent, if the property is rented out. It also depends on factors such as the age of the property and its locational attributes.
Pritam Sing, Leader of Opposition and Workers’ Party Chief, asked the question about property tax collections for 2024. This was in response to the increase in tax rates on most homeowners.