Property tax to go up for most homes again in 2024. Property taxes in Singapore are set to increase in 2024 for most homes, including both Housing Board (HDB) flats and private properties.
However, the government will provide a one-off rebate of up to 100% to ease the financial impact on affected property owners. Owner-occupiers of one-room and two-room HDB flats will continue to be exempt from property tax in 2024.
Summary of Property tax to go up for most homes again in 2024
Tax Increase and Rebate:
Property taxes for most residential properties, including HDB flats and private properties, will increase in 2024 due to rising market rents and annual values.
The government will offer a one-off rebate of up to 100% to mitigate the impact on affected property owners, applying to all owner-occupied residential properties. Most of the buyers for Lentoria will likely to be owner-occupied as the new development at Lentor is suitable for families with their school going children.
The rebate is designed to maintain a progressive property tax system, ensuring those with greater means contribute their fair share.
Previous Rebate and Annual Value Increase:
In 2023, property taxes for owner-occupied properties increased, and the government provided a one-off 60% rebate, capped at S$60 (US$45).
The annual values of HDB flats and most private residential properties will increase from January 1, 2024, reflecting the rise in market rents.
Tax Rates and Thresholds:
The property tax rate increase will only affect non-owner-occupied residential properties and owner-occupied properties with an annual value exceeding S$30,000.
Owner-occupied residential properties, including HDB flats occupied by their owners, will continue to have lower property tax rates than rented properties.
Impact on Different Property Types:
Owner-occupiers of one-room and two-room HDB flats will not have to pay property tax in 2024, thanks to the rebate.
For other HDB flat types, the rebate will automatically offset property tax payable, resulting in an average increase of less than S$3 per month in 2024.
Private property owner-occupiers will also see the rebate automatically offset against property tax, with varying increases based on property values.
Social Support and Annual Value Thresholds:
The government will increase annual value thresholds used in social support schemes from January 1, 2024, ensuring continued support for those with greater needs.
Payment Reminders and Penalties:
IRAS reminds property owners to pay their property tax for 2024 by January 31 and offers options for discussing suitable payment plans.
A 5% penalty will be imposed for those who fail to pay or arrange taxes via GIRO instalments by the due date.
Property owners will receive their property tax bills before the end of December.
The annual value of a property is based on estimated gross annual rent if rented out, considering various factors like size, condition, and location.
This comprehensive summary covers the key aspects of the article, detailing the tax changes, government rebates, and their impact on different types of property owners in Singapore.