One-time property tax rebate of up to 20% for owner-occupiers in 2025 to cushion cost-of-living pains

The government will give a one-off property tax rebate of up to 20 per cent for owner-occupied residential properties in 2025, said the Ministry of Finance (MOF) and Inland Revenue Authority of Singapore (IRAS) on Friday (Nov 29).

Owner-occupied HDB flats will receive a 20 per cent rebate, while owners of private residential properties will get a 15 per cent rebate capped at $1,000. 

In addition to the rebate, the Annual Value (AV) bands of owner-occupied properties will be raised come Jan 1, 2025 — a move announced during Budget 2024. 

The AV is the estimated rent a property can fetch in a year if rented out, and is also used to calculate property tax. Owner-occupied properties have lower tax rates. 

The lowest AV band threshold will be raised from $8,000 to $12,000, while the highest threshold will see an increase from over $100,000 to over $140,000. Corresponding adjustments will be made to bands in between.

With these measures, all owner-occupied HDB flats and over 90 per cent of owner-occupied private residential properties will pay less property tax in 2025. 

"This will help Singaporeans mitigate cost-of-living concerns," the authorities said.

All one- and two-room HDB flats will not have to pay property taxes in 2025.

"Homeowners can thus expect to pay the same or lower property taxes at each band, assuming that there is no change in their AVs and before any rebates," the authorities said.

All property owners can expect to receive their 2025 property tax bills from December. As the bills are sent out in batches, some may receive them earlier than others.

IRAS will also send homeowners SMS or email notifications about their tax bills and payment due dates. 

"Property owners are encouraged to apply for GIRO to enjoy up to 12-month interest-free instalments or opt for a one-time deduction," said MOF and IRAS. 

Those with financial difficulties can approach IRAS for assistance to discuss a suitable payment plan before the payment due date.

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claudiatan@asiaone.com