Part 2 of our Death & Taxes series (morbidly named, I know). In Part 1, we talked about the taxes incurred during purchasing of properties in Singapore. In this second part, the focus will move on to the next step – namely taxes to pay during maintenance and selling of property.
These taxes are:
During maintenance or holding of property:
Owner-occupier property tax
Non-owner-occupier property tax
Selling of property:
Seller’s Stamp Duty
Let me elaborate more on these below.
Property taxes come in 2 types when you are holding onto your property. One is owner-occupier property tax which is incurred when you are staying there because duh, it’s your home. Non-owner-occupier property tax is incurred when you, the owner, is not staying at the property – It could be because you are holding for investment or simply renting it out.
It is taxed based on a tiered structure on the Annual Value of the property.
Inland Revenue of Singapore (IRAS) definition:
The AV of buildings is the estimated gross annual rent of the property if it were to be rented out, excluding furniture, furnishings and maintenance fees. It is determined based on estimated market rentals of similar or comparable properties and not on the actual rental income received.
So no, property tax is not based on the purchase price of your property, but rather the annual rental value of your property.
Owner-Occupier Property Tax
Annual Value ($) Effective 1st Jan 2015
Property Tax Payable
First $8,000 - 0%, $0 Next $47,000 - 4%, $1,880
First $55,000 - $1,880 Next $15,000 - 6%, $900
First $70,000 - $2,780 Next $15,000 - 8%, $1,200
First $85,000 - $3,980 Next $15,000 - 10%, $1,500
First $100,000 - $5,480 Next $15,000 - 12%, $1,800
First $115,000 - $7,280 Next $15,000 - 14%, $2,100
First $130,000 - $9,380 Above $130,000 - 16%
Annual Value ($) Effective 1st Jan 2023
Property Tax Payable
First $8,000 - 0%, $0 Next $22,000 - 4%, $880
First $30,000 - $880 Next $10,000 - 5%, $500
First $40,000 - $1,380 Next $15,000 - 7%, $1,050
First $55,000 - $2,430 Next $15,000 - 10%, $1,500
First $70,000 - $3,930 Next $15,000 - 14%, $2,100
First $85,000 - $6,030 Next $15,000 - 18%, $2,700
First $100,000 - $8,730 Above $100,000 - 23%
Annual Value ($) Effective 1st Jan 2024
Property Tax Payable
First $8,000 - 0%, $0 Next $22,000 - 4%, $880
First $30,000 - $880 Next $10,000 - 6%, $600
First $40,000 - $1,480 Next $15,000 - 10%, $1,500
First $55,000 - $2,980 Next $15,000 - 14%, $2,100
First $70,000 - $5,080 Next $15,000 - 20%, $3,000
First $85,000 - $8,080 Next $15,000 - 26%, $3,900
First $100,000 - $11,980 Above $100,000 - 32%
Non-Owner-Occupier Property Tax
Annual Value ($) Effective 1st Jan 2015
Property Tax Payable
First 30,000 - 10%, $3,000 Next $15,000 - 12%, $1,800
First $45,000 - $4,800 Next $15,000 - 14%, $2,100
First $60,000 - $6,900 Next $15,000 - 16%, $2,400
First $75,000 - $9,300 Next $15,000 - 18%, $2,700
First $90,000 - $12,000 Above $90,000 - 20%
Annual Value ($) Effective 1st Jan 2023
Property Tax Payable
First 30,000 - 11%, $3,300 Next $15,000 - 16%, $2,400
First $45,000 - $5,700 Next $15,000 - 21%, $3,150
First $60,000 - $8,850 Above $60,000 - 27%
Annual Value ($) Effective 1st Jan 2024
Property Tax Payable
First 30,000 - 12%, $3,600 Next $15,000 - 20%, $3,000
First $45,000 - $6,600 Next $15,000 - 28%, $4,200
First $60,000 - $10,800 Above $60,000 - 36%
Takeaways from the above tables:
The more expensive your property, which typically relates to higher the annual rent you can get – means the higher tier and amount of property tax you will need to pay.
If you are not staying in your property, the property tax incur is higher than if you are staying there. So that means your investment property will incur more tax than the house you are staying in
The above rates apply for residential properties.
For other properties such as commercial / industrial or on the exclusion list:
Accommodation facilities within any sports and recreational club
Chalet
Child care centre, student care centre, or kindergarten
Welfare home
Hospital, hospice, or place for rehabilitation, convalescence, nursing care or similar purposes
Hotel, backpackers’ hostel, boarding house or guest house
Serviced apartment
Staff quarters that are part of any property exempted from tax under s6(6) of the Property Tax Act
Student’s boarding house or hostel
Workers’ dormitory
These properties will all incur 10% property tax on their Annual Value.
Take note from 2023 and 2024, new property tax rates will apply!
Now, on to the tax incurred when you are selling your property: Seller Stamp Duty (SSD)
Seller Stamp Duty
Seller stamp duty (SSD) is payable only on residential properties in Singapore. Its rates depend on when the property is sold, calculating from its date of purchase / acquisition to the date of sale / disposal.
It will be computed on the sale price or market value, whichever is higher on the date of sale / disposal.
Date of Purchase or Date of Change of Zoning / Use | Holding Period | SSD Rate (on the actual price or market value, whichever is higher) |
Between 20 Feb 2010 and 29 Aug 2010 (all inclusive) | Up to 1 year | 1% on first $180,000 2% on next $180,000 3% on remainder |
| More than 1 year | No SSD payable |
Between 30 Aug 2010 and 13 Jan 2011 (all inclusive) | Up to 1 year | 1% on first $180,000 2% on next $180,000 3% on remainder |
| More than 1 year and up to 2 years | 0.67% on first $180,000 1.33% on next $180,000 2% on remainder |
| More than 2 years and up to 3 years | 0.33% on first $180,000 0.67% on next $180,000 1% on remainder |
| More than 3 years | No SSD payable |
Between 14 Jan 2011 and 10 Mar 2017 (all inclusive) | Up to 1 year | 16% |
| More than 1 year and up to 2 years | 12% |
| More than 2 years and up to 3 years | 8% |
| More than 3 years and up to 4 years | 4% |
| More than 4 years | No SSD payable |
On and after 11 Mar 2017 | Up to 1 year | 12% |
| More than 1 year and up to 2 years | 8% |
| More than 2 years and up to 3 years | 4% |
| More than 3 years | No SSD payable |
The last part ‘On and after 11 Mar 2017’ will probably be more useful to you guys. To not incur this tax – better hold onto your property for at least 3 years!
I hope you all find this useful and to the point! Of course, in any special cases or clarifications, feel free to reach out to me. Cheers!
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