Answer
Property Tax Calculation Examples — Step by Step (2026)
Property tax in Singapore depends on Annual Value (AV) and whether you live in the property or rent it out. Here are worked examples at three price points so you know exactly what to expect.
Answer: A $500K HDB (owner-occupied, AV $12K) pays $160/year. A $1M condo (owner-occupied, AV $30K) pays $880/year. A $2M investment condo (non-owner-occupied, AV $60K) pays $10,800/year. Owner-occupied rates are 60–75% lower than investment rates. The first $8,000 AV is tax-free for owner-occupied properties.
Worked Examples (2026 Rates)
Annual Value (AV) based on typical rental rates for each property type
| Property | AV | Status | Tax/Year |
|---|---|---|---|
| $500K HDB 4-room | $12,000 | Owner-occ | $160 |
| $800K HDB 5-room | $18,000 | Owner-occ | $400 |
| $1M condo (2-bed) | $30,000 | Owner-occ | $880 |
| $1.5M condo (3-bed) | $42,000 | Owner-occ | $1,960 |
| $1M condo (2-bed) | $30,000 | Investment | $3,600 |
| $2M condo (3-bed) | $60,000 | Investment | $10,800 |
AV is estimated from typical market rents. Actual AV set by IRAS may differ.
Owner-Occupied Progressive Tax Rates
| AV Band | Rate | Tax on Band | Cumulative Tax |
|---|---|---|---|
| First $8,000 | 0% | $0 | $0 |
| Next $22,000 | 4% | $880 | $880 |
| Next $10,000 | 6% | $600 | $1,480 |
| Next $15,000 | 8% | $1,200 | $2,680 |
| Next $15,000 | 10% | $1,500 | $4,180 |
| Next $15,000 | 12% | $1,800 | $5,980 |
Continues up to 32% for AV above $280,000. Most residential properties fall within the first 3–4 bands.
Non-Owner-Occupied (Investment) Tax Rates
| AV Band | Rate | Tax on Band | Cumulative Tax |
|---|---|---|---|
| First $30,000 | 12% | $3,600 | $3,600 |
| Next $15,000 | 20% | $3,000 | $6,600 |
| Next $15,000 | 28% | $4,200 | $10,800 |
| Above $60,000 | 36% | — | — |
No tax-free band for investment properties. Every dollar of AV is taxed from 12%.
Factor property tax into your total cost
Property tax is an ongoing annual cost. For investment properties, it can be $5K–$11K/year — a meaningful hit to your rental yield.
FAQ
How is property tax calculated in Singapore?
Property tax = Annual Value (AV) x Tax Rate. Annual Value is the estimated annual rent your property could earn — set by IRAS, not you. Tax rates are progressive and differ for owner-occupied vs non-owner-occupied (investment). Owner-occupied rates: first $8,000 AV = 0%, next $22,000 = 4%, next $10,000 = 6%, next $15,000 = 8%, next $15,000 = 10%, next $15,000 = 12%, next $15,000 = 14%, next $20,000 = 16%, next $20,000 = 18%, next $20,000 = 20%, next $20,000 = 22%, next $20,000 = 24%, next $20,000 = 26%, next $20,000 = 28%, next $20,000 = 30%, above $280,000 = 32%. Non-owner-occupied: first $30,000 AV = 12%, next $15,000 = 20%, next $15,000 = 28%, above $60,000 = 36%. The gap is massive — owner-occupied pays 60-75% less than non-owner-occupied on the same property.
What is the property tax on a $500K HDB flat?
A $500K HDB flat typically has an AV of $10,000-$14,000 (based on comparable rental rates). Let us use AV = $12,000. Owner-occupied calculation: First $8,000 x 0% = $0. Next $4,000 x 4% = $160. Total property tax = $160/year ($13.33/month). For an AV of $10,000: First $8,000 x 0% = $0. Next $2,000 x 4% = $80. Total = $80/year. For smaller HDB flats (2-room, 3-room) with AV under $8,000, property tax is literally $0 — the first $8,000 is tax-free for owner-occupied properties. Most 3-room HDB flats fall in the $8,000-$10,000 AV range, meaning $0-$80/year in property tax. Even for 5-room HDB flats with AV of $16,000: $0 + ($8,000 x 4%) = $320/year. HDB property tax is essentially negligible.
What is the property tax on a $1M owner-occupied condo?
A $1M condo typically has an AV of $28,000-$36,000. Let us use AV = $30,000. Owner-occupied calculation: First $8,000 x 0% = $0. Next $22,000 x 4% = $880. Total property tax = $880/year ($73/month). At AV = $36,000: $0 + ($22,000 x 4%) + ($6,000 x 6%) = $880 + $360 = $1,240/year. At AV = $28,000: $0 + ($20,000 x 4%) = $800/year. The same condo as non-owner-occupied (investment): AV $30,000 x 12% = $3,600/year — that is 4x more. This is why owner-occupied status matters so much. You apply for owner-occupied concession within 30 days of moving in via IRAS myTax Portal. If you forget, IRAS charges the higher non-owner-occupied rate and you must apply for backdated adjustment (up to 2 years).
What is the property tax on a $2M investment property?
A $2M investment condo typically has an AV of $54,000-$72,000. Let us use AV = $60,000. Non-owner-occupied calculation: First $30,000 x 12% = $3,600. Next $15,000 x 20% = $3,000. Next $15,000 x 28% = $4,200. Total property tax = $10,800/year ($900/month). At AV = $54,000: $3,600 + $3,000 + ($9,000 x 28%) = $3,600 + $3,000 + $2,520 = $9,120/year. If the same $2M property were owner-occupied (AV $60,000): $0 + $880 + $600 + $1,200 + $1,500 + $1,200 = $5,380/year — saving $5,420/year compared to non-owner-occupied. For landlords: property tax is deductible against rental income. On $4,500/mo rent ($54K/year), after deducting $9,120 property tax + $6,000 MCST + $3,000 other expenses = $35,880 taxable rental income. At marginal 15% tax rate, net tax on rental = $5,382.
How does IRAS determine the Annual Value (AV)?
IRAS estimates AV by looking at comparable rental transactions in your area. For a 3-bedroom condo in Bishan renting at $3,500/mo, AV = $42,000 ($3,500 x 12). IRAS reviews AV every year, effective 1 January. They consider: (1) actual rental rates for similar units in the same development, (2) rental rates in nearby comparable developments, (3) size, floor level, condition, and furnishing. IRAS does NOT use your actual rental income — even if you rent below market, AV is based on market rate. You can check your AV on the IRAS website or myTax Portal. If you think your AV is too high, you can object within 30 days of the Notice of Annual Value. Success rate for objections is about 30-40%. Common winning arguments: unit condition significantly worse than comparables, facing disamenity (construction, expressway), unusually small layout for the floor area. The objection is free, and IRAS reviews within 2-3 months.
When is property tax due and how do I pay?
Property tax is billed annually. IRAS sends the tax bill in December/January for the upcoming year. Payment due: 31 January. Payment methods: (1) GIRO — auto-deduction, can spread into 12 monthly instalments (interest-free). Apply through IRAS or your bank. (2) One-time payment — Internet banking, AXS, PayNow (UEN), cheque. (3) CPF — you CANNOT use CPF for property tax. Late payment: 5% penalty imposed immediately after the due date. If unpaid for 6+ months, IRAS can pursue through courts or impose property liens. For investment properties: remember property tax is a deductible expense against rental income. Keep the IRAS tax bill as documentation. Pro tip: set up GIRO for monthly deductions — $900/month (for a $10,800/year investment property tax) is easier to manage than a single $10,800 hit in January. GIRO sign-up takes 2-3 weeks to process, so apply by early December for the next year.
Related
- Property Tax (Owner-Occupied) — 0–32% progressive rates
- Property Tax (Non-Owner-Occupied) — 12–36% investor rates
- Property Tax Appeal — 30–40% success rate
- Annual Value (AV) Explained — how IRAS sets your AV
- How to Save on Property Tax — owner-occupied saves $3K–$5K+/yr
- Property Tax on Condo — ~$1,080/yr owner-occupied
Last updated Feb 2026. Tax rates are from IRAS. Annual Values are estimated from typical market rents and may differ from IRAS assessments. This is general information, not tax advice.