Property tax is calculated on Annual Value (AV), not purchase price — and rates differ sharply based on whether you live in the property, with a one-off rebate cushioning bills in 2026.
Annual Value (AV) is IRAS's estimate of the yearly rent your property could fetch on the open market, based on rental transactions for comparable properties nearby — not your purchase price, outstanding mortgage, or personal valuation. It excludes furniture, furnishings, and maintenance fees. IRAS reviews AV periodically, typically annually, and it moves with the broader rental market rather than your own circumstances.
| AV Band | Rate |
|---|---|
| First $12,000 | 0% |
| Next $28,000 (to $40,000) | 4% |
| Next $10,000 (to $50,000) | 6% |
| Next $25,000 (to $75,000) | 10% |
| Next $10,000 (to $85,000) | 14% |
| Next $15,000 (to $100,000) | 20% |
| Next $40,000 (to $140,000) | 26% |
| Above $140,000 | 32% |
These rates are the final step of a multi-year increase — the top owner-occupier rate rose from just 6% in 2022 to 32% by 2025, targeted at higher-value homes. Most HDB flats sit entirely within the 0% band and pay no property tax at all as owner-occupied residences.
| AV Band | Rate |
|---|---|
| First $30,000 | 12% |
| Next $15,000 (to $45,000) | 20% |
| Next $15,000 (to $60,000) | 28% |
| Above $60,000 | 36% |
Investment or rented-out residential properties have no 0% band at all — every dollar of AV is taxed from the first dollar, reflecting their treatment as income-generating assets rather than a primary home.
Commercial and industrial buildings and land are taxed at a flat 10% of AV, regardless of value — a much simpler, non-progressive structure than residential property.
To help offset rising property values, IRAS is granting a one-time rebate for 2026 on owner-occupied properties only:
This is applied automatically as a credit on the bill — there's nothing to apply for. It doesn't change the underlying rate bands, just the final amount payable for that one year.
Calculate your exact property tax, including the 2026 rebate.
Use the Property Tax Calculator →Owner-occupier rates aren't automatic just because you've moved in — if your property is currently taxed at non-owner-occupier rates but you actually live there, you need to apply via IRAS's "Apply/Withdraw Owner-Occupier Tax Rates" digital service. Backdated refunds for missed applications are limited to 5 preceding years from when you submit the claim, so it's worth checking your status sooner rather than later if you're unsure.
Generally, a married couple can only claim owner-occupier rates on one property between them, even if each spouse separately resides in a different home.
If you believe your AV doesn't reflect a fair market rent for your property — perhaps comparable units are renting for noticeably less — you can file an objection with IRAS within the timeframe stated on your valuation notice. Supporting evidence such as recent comparable rental transactions strengthens an appeal significantly more than a general objection to the amount.
Property tax bills are typically sent in December for the following calendar year, with payment due by 31 January. GIRO monthly instalment plans are available to spread the cost across the year rather than paying in one lump sum, and late payment incurs a 5% penalty.
Check your specific property's AV on the IRAS website — it can differ significantly from what you'd estimate based on purchase price or market value. Rates and rebates are set by IRAS and can change.