Tax drops along with rental value

Owners living in Housing Board flats will enjoy a reduction in property tax next year, the Inland Revenue Authority of Singapore (Iras) said yesterday.

This is because the annual values of three-, four-, five-room, and executive flats will be lowered by about 3 per cent from January to reflect the dip in the rental market.

HDB Executive Flats do not include Executive Condominiums, which are considered private homes.

Property taxes are dropping for the second year in succession. Along with the implementation of more progressive tax rates this year, the latest revision in annual values means HDB residents will save between $42 and $54 in taxes next year, compared to two years ago, Iras said.

All one- and two-room owner-occupiers will continue to pay no property tax.

Iras reviews the annual values of properties, including HDB flats, each year. The annual value is the estimated annual market rent of a property.