In 2023, property taxes will increase due to an annual reassessment of the annual property values used to calculate the tax.
Both Housing Board (HDB) apartments and private houses would be affected by the revision.
To offset the increase, the government would grant a one-time property tax credit of 60 percent, up to a maximum of S$60, for all owner-occupied homes. This will be immediately subtracted from any property taxes owed in 2023.
The Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS) announced in a press release on Friday that one- and two-room HDB owner-occupiers would continue to pay no property tax next year as their yearly valuations remain below S$8,000 (Dec 2).
After factoring in the rebate, "the majority of owner-occupants in other HDB unit types would pay between S$30 and S$70 more in property tax compared to 2022," they noted.
After the rebate, the rise in property tax will be greater for people who own more costly properties.
"As announced in Budget 2022, the property tax rates for 2023 would become more progressive beginning January 1, 2023," the Ministry of Finance and the Inland Revenue Authority of Singapore (IRAS) said.
The revision of annual property values reflects the increase in market rentals, according to the authorities.
The yearly value of a property is the projected annual rent that might be received if the property were rented out, as calculated by the market rate of comparable properties.
The property tax due is calculated by multiplying the property tax rate by the unit's yearly value.
MOF and IRAS reported that market rentals for HDB flats and private residential properties had increased by more than 20% since the latest review of annual values on January 1 of this year.
"Residential property yearly values will be adjusted proportionately from January 1, 2023," they stated.
The change of yearly values would not affect eligibility for social assistance programmes such as the GST Voucher scheme, MediShield Life premium subsidies, and the Workfare Income Supplement Scheme, the Ministry of Finance and the Institute of Retirement Savings of Singapore (IRAS) stated.
In order to calculate eligibility in 2023, the annual values as of 2022 will be considered.
MOF and IRAS stated that the government will continue to assess its social support programs to ensure that Singaporeans in need of assistance receive it.
By this month's end, property owners will get their property tax invoices. The due date for property tax payments is January 31, 2023.
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