Property Tax Hike with One-Off Rebate Offered
Property taxes in Singapore for most homes, including both HDB flats and private properties, are set to increase in 2024. The government, acknowledging cost-of-living concerns, will provide a one-off rebate of up to 100% to mitigate the impact on homeowners. This increase in property taxes is a result of the rise in market rents and annual values of most residential properties.
Details of the Rebate and Tax Rate Changes
The rebate is designed to ensure a progressive tax regime, with those having greater means contributing more. Owner-occupied HDB flats will not see any increase in property tax rates, with the exception of higher-value private properties. The rebate ensures that owner-occupiers of one-room and two-room HDB flats will not have to pay property tax in 2024. For other HDB flat types, the rebate will be automatically applied against any property tax due, with an average increase of less than S$3 per month.
Specifics on Taxable Amounts
For private property owner-occupiers, the property tax increase for the bottom half will be less than S$15 a month, with higher increases for those owning higher-value properties.
Impact on Social Support Schemes
In response to the property tax increase, the government will also raise the annual value thresholds used in social support schemes from January 1, 2024. This adjustment ensures that Singaporeans with greater needs continue to receive necessary support.
Payment Reminders and Penalties
Property owners are reminded to pay their property tax for 2024 by January 31. IRAS offers options for those facing financial difficulties to discuss suitable payment plans. A penalty of 5% will be imposed for failure to pay or arrange payment by the due date.
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