How Property Tax Is Calculated in Singapore: Annual Value, Occupancy and Use

Property tax in Singapore is based on Annual Value, not on what the owner paid for the property and not on the housing loan. The formula IRAS uses is simply Property tax = Annual Value × the applicable tax rate, with the rate applied marginally across bands. IRAS first determines the property’s AV, then applies the relevant progressive schedule based on whether the property is owner-occupied and how it is actually used. For the official calculation framework, see IRAS’ guide on how property tax is calculated. For a broader ownership-cost overview, see Singapore Property Tax and Ownership Costs and the Gov.sg explainer on residential property tax.

A quick way to clear up common misconceptions is this:

Takeaway: property tax follows rental value and use, not financing.

Annual Value is IRAS’ estimate of the gross annual rent a property could fetch if it were rented out. It is a notional rental figure, not the owner’s actual rent collected, not the resale price, and not the outstanding loan amount. IRAS also explains this on its Annual Value page.

A useful detail when making sense of AV: it is based on gross rental value before deductions such as furniture, furnishings, maintenance, and similar items. That is why your net rental income does not determine the property tax bill.

One way to see it: two homes can have very different purchase prices, but if their rental potential is similar, their AV may still be in a similar range. To see your own AV and the tax rate applied, log in to myTax Portal and open Property > View Property Summary (IRAS). To locate the figure quickly, check the latest IRAS notice and, if needed, this guide on how to find the Annual Value of your property.

IRAS estimates AV using comparable rental evidence. In practical terms, that means similar properties in similar locations, with similar size, type, and condition, are relevant reference points.

The easiest way to make sense of this is to work backwards from the bill. If the AV on a condo looks high, compare it with recent asking or transacted rents for similar units in the same development or nearby competing projects. For a landed home with the same concern, look for closer like-for-like rental evidence rather than resale caveats or mortgage details.

AV can also change when rental market conditions change. So a bill that looks higher than a previous year is not automatically an error. The sharper question is whether the AV still looks reasonable against comparable rents now.

Practical check before you act: compare the AV shown on the notice with recent rents of similar units first. If the rental evidence and the notice look materially out of line, then it may be worth considering a query or objection. For a broader overview, see Owner-Occupier vs Non-Owner-Occupier Property Tax in Singapore.

Owner-occupied residential homes are taxed on a lower rate schedule than non-owner-occupied residential homes. The key point is that this turns on actual occupation, not just who holds legal title.

If you live in the property, it may qualify for owner-occupied treatment. IRAS's test (IRAS): you, as an individual or a married couple, must own and live in the home, and a married couple gets owner-occupier rates on only one home, however the homes are held. On your own, too, you get owner-occupier rates on only one home: a second home you also live in is taxed at non-owner-occupier rates. A home owned by a company, or held on trust by a trustee who doesn't live there, doesn't qualify, and nor does one that is wholly rented out, left vacant or sold. If you have moved out and the property is rented out, or no longer used as your home, it is generally treated as non-owner-occupied. A very common scenario is a condo that was once owner-stay but is now leased out after a relocation. In that case, the bill should be reviewed rather than assumed to be unchanged.

Both schedules are progressive and applied marginally across Annual Value bands. As of 2026, the current IRAS rates are:

Owner-occupier residential rates (from 1 January 2025): 0% on the first $12,000 of AV, then 4% ($12,001–$40,000), 6% ($40,001–$50,000), 10% ($50,001–$75,000), 14% ($75,001–$85,000), 20% ($85,001–$100,000), 26% ($100,001–$140,000), and 32% on AV above $140,000.

Non-owner-occupier residential rates (from 1 January 2024): 12% on the first $30,000 of AV, then 20% (next $15,000), 28% (next $15,000), and 36% on AV above $60,000.

Because these bands were revised recently and can change again, confirm the current schedule on IRAS’ property tax rates and the page on lower property tax rates for owner-occupied residential properties before relying on a figure. For a deeper explanation, see Owner-Occupier vs Non-Owner-Occupier Property Tax in Singapore.

Ownership alone does not decide the bill. Occupation does. For a broader overview, see Property Tax When You Rent Out Your Flat or Condo.

Actual use matters, and vacancy does not automatically preserve owner-occupied treatment. A residential property that is fully rented out is generally treated as non-owner-occupied. A residential property that is vacant is also generally treated as non-owner-occupied rather than given lighter treatment just because no tenant is inside.

The more easily misunderstood cases are partial occupancy situations. Examples include an owner staying in the home while renting out one room, or a property that has just become vacant after lease expiry but has not yet been re-occupied by the owner. IRAS's rule for the first case is clear: if you rent out part of your home while still living in it, you remain eligible for owner-occupier rates (IRAS). Check your next bill anyway: if the rates are withdrawn after you let a room, write to IRAS confirming you still live there, with the tenancy agreement (and HDB's room-rental approval for a flat), to have them reinstated (IRAS). A home left empty with no owner moving in, such as one waiting for the next tenant, is taxed at non-owner-occupier rates, with no relief for vacancy (IRAS). An empty home you are about to live in is different: once your tenant moves out and you plan to move in, you can apply for owner-occupier rates even while it is empty for renovation, and a home already on owner-occupier rates keeps them during works you will move back in after (IRAS). In these cases, avoid guessing from intention alone. The safer approach is to verify how IRAS has classified the property on the latest notice and whether that still matches the facts on the ground.

Practical takeaway: do not use vacancy as shorthand for tax relief. Check the bill, the occupancy status, and the timing of any recent move-in or move-out first. For a broader overview, see Property Tax for HDB Flats, Condos and Landed Homes in Singapore.

Property tax treatment follows classification and actual use, not just the postal address or ownership structure. Straightforward residential homes are usually easiest to explain. Non-residential properties follow a different tax framework: they are taxed at a flat 10% of Annual Value, and owner-occupier rates never apply to them (IRAS). Mixed-use properties need more care because the property may not fit a simple owner-stay versus rental story.

Common examples include conserved shophouses, strata units with commercial components, or properties whose use has changed over time. In these cases, the safest approach is to read the latest notice before giving a definitive answer.

Useful rule of thumb: if the property is not a plain-vanilla owner-stay home, verify the classification before drawing a conclusion about the tax outcome.

Whether you call it property tax or house tax, the calculation has three steps: find the AV on your notice or in myTax Portal, check which rate schedule applies, then work up the bands. IRAS's own examples (IRAS):

Non-residential property is simpler: a flat 10% of AV. For 2026, owner-occupied homes also get a one-off rebate: 15% for an HDB flat, and 10%, capped at $500, for a private home, taken off the bill automatically (IRAS). For when the bill is due and how to pay it, see property tax due dates and payment.

What IRAS says about applying (IRAS):

• After a tenancy ends. You can apply as soon as the tenant moves out if you plan to move in, even while you renovate; the rates don't come back on their own. If the lease was ended early, attach proof, such as the termination agreement or a new utility account.
• Claim on time. Refunds of tax overpaid are limited to the 5 years before the year you apply, so a late claim can cost you money.
• Working overseas. A temporary posting abroad doesn't lose you the rates, as long as the home is kept as your home and isn't rented out.
• Moving out. Withdraw the rates within 15 days of moving out, through the same service. Late or no notice can mean a fine of up to $5,000, plus interest on the tax (IRAS).

Check which rate you are on from the indicator on your bill, or in View Property Summary.

IRAS won't issue separate bills for each owner's share (IRAS), so agree between you who pays, and make sure the owner who receives the bill passes it on in time.

Joint ownership also affects the rate. A married couple gets owner-occupier rates on only one home, whether the homes are owned jointly or separately; but if you co-own two homes with someone other than your spouse, such as a parent, and you live in one while they live in the other, each of you can apply for owner-occupier rates on the home you live in (IRAS).

A recent change in occupancy or use should trigger a review of the latest bill. The most common scenarios are:

• you move out and start renting the unit
• a tenant moves out and the property becomes vacant
• you move back into a previously rented property
• part of the property starts being used differently from before

Two of these need action, not just a review (IRAS, as of 2026): if you move out, notify IRAS within 15 days (IRAS); if you let the home out, tell IRAS within 15 days, which e-stamping the tenancy agreement on myTax Portal does for you (IRAS). Missing either can mean a fine of up to $5,000. And if you move back in after a tenancy, reapply, because owner-occupier rates don't come back automatically.

This matters because property tax is billed yearly in advance, so the latest notice may still reflect an earlier status. If you have already moved out, or the tenant has already left, the practical next step is not to debate the outcome from memory. Pull up the latest IRAS notice and the change date, then check whether the billing treatment still matches the current facts.

For rental-change situations, Property Tax When You Rent Out Your Flat or Condo is a useful next read. Practical takeaway: every tenancy change is also a tax-status review point.

It is calculated on Annual Value, not market value. AV is IRAS’ estimate of the property’s gross annual rental value, while market value is a different concept used more commonly in sale, valuation, and financing discussions.

This distinction matters in practice. If you think, "My home is worth more than before, so that must be why the property tax rose," that is only a useful explanation if the higher market value also reflects higher rental value and a revised AV. The cleaner way to check is to review the AV and occupancy treatment on the latest notice, not the last sale price. If you need help locating that figure, see How to Find the Annual Value of Your Property in Singapore.

Sources. The rates and rules on this page are from the Inland Revenue Authority of Singapore (IRAS) and the Ministry of Finance, current as of 2026, with effective dates noted where they changed recently (e.g. owner-occupier property-tax bands from Jan 2025, and non-owner-occupier bands from Jan 2024). The owner-occupier scale (0%–32%) and the non-owner-occupier scale (12%–36%), and the Property tax = Annual Value × rate formula, are IRAS figures. Rates change — always confirm the current figure on IRAS before relying on it.

Updated September 2026. The rate schedules, worked examples, non-residential rate and vacancy rule are from IRAS's Property Tax Rates page and the 2026 rebate from its 2026 Property Tax Bill page, both read on 18 September 2026; the joint-owner rules from IRAS's Payments page (18 September 2026); the owner-occupier eligibility, application and refund rules from IRAS's owner-occupier rates page (last updated 10 August 2026, read on 19 September 2026); the 15-day notices, penalty and renovation rule from IRAS's Moving Out, Renting Out and Carrying Out Works pages, read on 19 September 2026.

Scope. This is a practical explainer, not tax advice; the tax on a specific property depends on its exact Annual Value, occupancy, and use. Note that property tax is a separate charge from a condo's recurring maintenance contributions — see What Are MCST Fees in Singapore and What Do They Cover? — and separate again from income tax on any rent, covered in How Rental Income Is Taxed in Singapore.