Revised Annual Value Bands Will Benefit Homeowners Starting in 2025
In the Singapore Budget 2024, Finance Minister Lawrence Wong announced revisions to the property tax rates for owner-occupied residential properties, which will take effect in January 2025. This change aims to ensure that homeowners will pay the same or lower property tax bills at each band level, assuming no changes in their properties’ annual value (AV) and before any rebates are applied.
The lower threshold for property tax will be raised to S$12,000 from S$8,000, and the higher threshold will be increased to over S$140,000, up from over S$100,000. The adjustments come after market rents and AVs rose significantly in recent years due to demand and supply constraints, affecting more properties than initially planned.
Wong also acknowledged that retirees in higher-end homes may experience cash flow difficulties when paying their tax bills. To ease this burden, the Inland Revenue Authority of Singapore (IRAS) will offer an interest-free 24-month installment plan for eligible retirees. The government has also provided a rebate to cushion the impact of these changes and will continue to monitor the property market to assess if further rebates are necessary in 2025.
