Higher property tax next year for most HDB flat owners

SINGAPORE: Most owners residing of their Housing Board (HDB) flats should pay more in property taxes next year, amid a revision of their property's annual worth.The Inland Revenue Authority of Singapore (IRAS) stated on Wednesday (Dec 1) it can revise upwards the annual values of HDB flats by 4 per cent to six per cent, reflecting the rise in market leases.The revision, a part of IRAS’ annual evaluation of properties to compute the property tax payable, take impact on Jan 1.This is the primary time since 2017 that the annual values of HDB flats are being revised.The annual worth is the estimated lease that could possibly be collected yearly if the property have been to be rented out, and it's decided based mostly available on the market charge of comparable properties.The property tax payable is derived by multiplying the property tax charge with the annual worth of the unit.With the revision, about 65 per cent of owners residing in three-room flats will every pay between S$8 and S$14 more in property tax yearly, stated IRAS.Owner-occupiers of four-room, five-room and government flats will every pay between S$21 and S$26 more.All one-room and two-room owner-occupiers in addition to 35 per cent of three-room owner-occupiers will proceed to pay no property tax."Similarly, IRAS reviews the annual values of private residential properties annually. Private residential property owners will also see an increase in their annual values in 2023," stated the tax authority.

PAYABLE PROPERTY TAX FOR HDB OWNERS

Owner-occupiers take pleasure in concessionary property tax charges ranging between 0 per cent and 16 per cent, whereas the property tax charges for those that lease out their flats vary between 10 per cent and 20 . The tax charges are progressive, with increased worth properties being taxed at increased charges.