SINGAPORE: All owner-occupied Housing and Development Board (HDB) flats will get a one-off property tax rebate of 20 per cent in 2025, it was announced on Friday (Nov 29).

In a joint press release, the Ministry of Finance (MOF) and Inland Revenue Authority of Singapore (IRAS) said they would also provide a 15 per cent property tax rebate, capped at S$1,000 (US$746), for owner-occupied private residential properties in 2025. 

The government previously announced at Budget 2024 in February that it would raise the annual value (AV) bands for owner-occupied properties from Jan 1, 2025.

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

This means that home owners can expect to pay the same or lower property taxes at each band, assuming that there is no change in their AVs and before any rebate. 

With this revision, all one- and two-room HDB flats will continue not to pay property tax in 2025.

All other HDB flats will continue to be taxed at 4 per cent for the portion of the AV above S$12,000, said MOF and IRAS. 

Property taxes are calculated based on AVs, which are based on the estimated yearly rent if a property was rented out.

Owner-occupied homes - where the owner lives in the property - pay lower tax rates.

As a result of the rebates and changes to the AV bands, all owner-occupied HDB flats and 90 per cent of owner-occupied private residential properties will see lower property tax in 2025, said MOF and IRAS in the press release. 

“This will help Singaporeans mitigate cost-of-living concerns,” the press release read. 

All property owners will receive their 2025 property tax bills from December. The bills are sent out in batches, and some property owners may receive them earlier than others, said MOF and IRAS.