One-off rebate for owner-occupied homes in 2024 to cushion impact of property tax rises: MOF, IRAS
The Ministry of Finance (MOF) and Inland Revenue Authority of Singapore (Iras) have announced a one-off property tax rebate for owner-occupied homes in response to the anticipated increase in property taxes. The rebate, ranging from 100 percent for small public flats to 15 percent for private properties, aims to mitigate the impact of higher property taxes set to take effect on January 1 next year. The tax hike is attributed to elevated market rents, increased annual property values for most residential properties, and higher tax rates for high-value private residential properties implemented this year and the next.
Owner-occupiers of private properties are eligible for a 15 percent rebate, capped at S$1,000. The rebates will be automatically deducted from any property tax payable. Owner-occupiers of three-room or larger public flats can expect a slight increase in property tax, with the bottom half of private property owners experiencing a modest rise, particularly for higher-value properties.
In Budget 2022, Singapore announced an increase in property taxes, set to be implemented in two stages in 2023 and 2024. For owner-occupied residential properties, the property tax for the portion of annual value exceeding S$30,000 will rise from 4-16 percent in 2022 to 6-32 percent by 2024. The changes are expected to boost Singapore’s property tax revenue by approximately S$380 million annually. The rebate initiative is designed to make the property tax regime progressive, ensuring fair contributions based on means.
