Take an owner-occupied home with an Annual Value of S$40,000, IRAS’s estimate of the yearly market rent. Owner-occupier tax is progressive on the Annual Value. The first S$12,000 of Annual Value is taxed at 0 percent, so it contributes nothing. The remaining S$28,000, the slice from S$12,000 to S$40,000, falls in the 4 percent band and produces S$1,120 of tax.
So the annual property tax is S$1,120, an effective rate of just 2.80 percent on the S$40,000 Annual Value. The tax-free first S$12,000 keeps owner-occupier bills modest at lower values. The same home, if rented out or left vacant, would be taxed under the steeper non-owner-occupied schedule and pay considerably more, which is the main reason the two rate tables exist.
How it is calculated
Property tax is charged on the Annual Value, not on the price or your loan. For an owner-occupied home the rate is progressive: the first S$12,000 of Annual Value is free, then the bands rise through 4, 6, 10 and 14 percent and beyond, reaching 32 percent on the highest band. Only the slice of Annual Value inside each band is taxed at that rate, so the effective rate climbs gradually as the Annual Value rises. Homes that are rented out or left vacant use a separate, higher non-owner-occupied schedule. IRAS sets the Annual Value annually based on estimated market rents, and the rates shown here should be confirmed against the current IRAS tables.
Frequently asked questions
What is Annual Value?
Annual Value (AV) is IRAS estimate of the yearly rent your property could fetch, unfurnished and without furniture. IRAS reviews AV annually based on market rental transactions. Owner-occupied homes use a lower progressive schedule; non-owner-occupied homes (rented out or left vacant) are taxed at higher flat or progressive rates under a separate table.
What are the 2025/2026 owner-occupier property tax rates?
For owner-occupied residential properties, the first S$12,000 of AV is taxed at 0 percent. The band from S$12,001 to S$40,000 is taxed at 4 percent. S$40,001 to S$70,000 at 6 percent. S$70,001 to S$140,000 at 10 percent. S$140,001 to S$250,000 at 14 percent. S$250,001 to S$350,000 at 20 percent. S$350,001 to S$500,000 at 26 percent. Above S$500,000 at 32 percent. These rates were introduced progressively from 2023 and apply in full from 2024 onward. Confirm current rates at iras.gov.sg.
When is property tax due?
IRAS issues property tax bills in January each year, covering the full calendar year. The full amount is due by 31 January. If you prefer to spread payments, GIRO allows monthly deductions over 12 months at no extra cost and IRAS offers a one-month discount on the annual bill when you pay by GIRO. Late payment attracts a 5 percent penalty on the outstanding amount.
Can I claim any property tax rebates or exemptions?
Owner-occupiers of HDB flats and some private properties have received one-off rebates in recent budget announcements; check your IRAS bill for any rebate applied. Properties used exclusively as places of worship, charities registered under the Charities Act, and certain diplomatic premises may qualify for exemptions or remissions. The owner-occupier concession itself (the 0 percent band on the first S$12,000 of AV) is the main structural relief for resident homeowners. You must apply for the owner-occupier status with IRAS if it is not already on record; IRAS does not grant it automatically.