HDB Property Tax Goes Up

HDB property tax to go up

The property tax for HDB flats will go up between $40 and $50 next year because of rising market rents.

The increment is after a one-off $40 rebate the Government is extending to all owner-occupied flats, the Inland Revenue Authority of Singapore (Iras) said yesterday. The rebate is to mitigate the impact of the tax rise on middle- and lower-income households, it added.

Currently, Housing Board flats are taxed at up to 6 per cent of their annual values, which is calculated through what these units would fetch in the rental market.

Market rents of HDB flats have risen by 8per cent to 13per cent since Jan1 - hence, the rise in property tax.

For homes whose annual values exceed $65,000, the tax rate is 6 per cent.

As for those with annual values below $6,000, such as one- and two-room flats, there is no tax.

For flats in-between, the tax rate is 4 per cent.

Three-room flats will see the biggest jump in tax next year. The increase will range between $44 and $51.

This year, owners of such flats paid property tax ranging from $0 to $41. Next year, they will pay tax ranging from $44 to $92, after the rebate is applied.

All other flats will see tax increases ranging from $39 to $51.

After the rebate, the tax four-room flat owners will pay will range from $128 to $176; five-room flat owners, $164 to $212; and executive flat owners, $188 to $236.

As for non-owner-occupied flats, that is, flats which are sub-let, the tax rate is 10 per cent, and they will not be given the $40 rebate, said Iras.

Property tax must be paid by Jan 31, after which a 5 per cent penalty will be imposed. Taxpayers with inquiries may call on 1800-356-8300 or e-mail propertytax@iras.gov.sg

Source: The Straits Times –28 November 2012