The Singapore Government has announced a one-off property tax rebate for 2025 to ease financial pressures on homeowners.
The measure will benefit both owner-occupied Housing Board (HDB) flats and private residential properties, according to a joint statement by the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS) issued on 29 November 2024.
For owner-occupied HDB flats, the rebate will be set at 20%, while private residential properties will receive a 15% rebate capped at S$1,000. The rebate will be automatically applied to offset property tax payable in 2025, reducing the administrative burden on homeowners.
This rebate complements changes to annual value (AV) bands for owner-occupier property tax rates, previously announced in Budget 2024.
From 1 January 2025, AV bands will be revised to reflect increases in residential property values over recent years.
The first AV band will increase from S$8,000 to S$12,000, ensuring that one- and two-room HDB flats remain exempt from property tax. Other HDB flats will be taxed at a marginal rate of 4% for the portion of their AV exceeding S$12,000.
For private residential properties occupied by owners, the adjusted AV bands will also result in lower tax rates compared to properties not used as residences by their owners. Over 90% of such properties are expected to experience lower property tax obligations in 2025, thanks to the combination of the rebate and revised AV thresholds.
The Government has highlighted these measures as part of a broader strategy to address cost-of-living concerns, especially amidst rising living expenses.
All owner-occupied HDB flats, along with the vast majority of private residences used as homes, will see reductions in their tax liabilities under this new framework. These steps reflect a careful balance between mitigating economic pressures on households and adjusting the tax structure to account for changes in property values.
In preparation for these changes, property owners will receive their 2025 property tax bills starting from December 2024.
Notifications will be sent via SMS, email, or made available on the myTax Portal. Owners are advised to check their notifications and pay their tax promptly to avoid penalties.
A 5% late payment penalty will be imposed on those who fail to pay or set up GIRO instalments by the specified deadlines.
To support timely payments, the GIRO scheme allows property owners to spread their tax payments over 12 months interest-free or make a one-time deduction.
Retirees may apply for the Extended GIRO Scheme, which offers up to 24 months of instalments for those eligible. For individuals facing financial challenges, IRAS provides assistance plans that can be arranged through the myTax Portal.
This rebate, together with the AV band adjustments, underscores the Government’s commitment to supporting Singaporeans through cost-of-living pressures.
At the same time, it maintains a fair tax system aligned with the country’s fiscal responsibilities. Further information on the 2025 property tax bills, payment options, and related assistance can be found on the IRAS website.
As Singapore gears up for a General Election, which must be held by November 2025, these measures may provide some reassurance to homeowners navigating economic challenges.
