Most HDB flat owners to pay more in property taxes next year: Iras
Most owners of Housing Board flats can expect to pay more in property taxes next year, as the Inland Revenue Authority of Singapore (Iras) will be revising the annual value (AV) of HDB flats in line with increase in market rentals.
Iras said in a statement on Wednesday (Dec 1) that the AV will be revised upwards by 4 per cent to 6 per cent, with effect from January next year, and that this is part of its annual review of properties to compute the property tax payable.
With the revision in AV, all one-room and two-room flat owner-occupiers will continue to pay no property tax.
This will also be the case for 35 per cent of three-room flat owner-occupiers, while 65 per cent of three-room flat owner-occupiers will each pay between $8 and $14 more annually.
The four-room, five-room and executive flat owner-occupiers will each pay between $21 and $26 more annual property tax in 2022.
Iras said it monitors market rental trends to determine the AV of properties.
AV is the estimated annual rent of the property if it were to be rented out and is determined based on the market rents of comparable properties.
The AV of HDB flats had remained unchanged since its last revision in 2017.
However, Iras added, with the rising market rents of HDB flats this year, the AV of all HDB flats will need to be revised upwards from Jan 1 next year.
All property owners will receive their property tax bills by end-December this year and are required to pay their property tax by Jan 31.
There will be a 5 per cent penalty imposed for property owners who fail to pay or have not arranged to pay their tax via Giro instalments by the due date.
Property owners facing financial difficulties may approach Iras for assistance to discuss a suitable payment plan before Jan 31.