Why two similar flats can get different property tax bills

Two neighbours in the same estate compare property tax bills over kopi and find they are different. Same town, similar floor area, different numbers. Neither bill is wrong. Property tax in Singapore is not based on what you paid for your home or what it is worth today. It is based on an estimate of the rent it could fetch, and on whether you live in it.

This guide explains the two inputs to every residential property tax bill, the owner-occupier rates and the one-off rebate that applied to 2026 bills, with worked examples using IRAS’s published figures.

The formula on every bill

IRAS describes it in one line: property tax = Annual Value × tax rates. Property tax applies to ownership, whether the property is rented out, lived in or empty. Residential property is taxed on a progressive scale, with lower rates for homes that the owner lives in. Other properties are taxed at a flat 10% of Annual Value.

What Annual Value is

The Annual Value (AV) is IRAS’s estimate of the gross annual rent a property could fetch if it were rented out, excluding furniture, furnishings and maintenance fees. IRAS determines it from the market rents of similar or comparable properties, adjusted for differences in location, size, condition and other features. It is not the rent you actually receive. IRAS gives an example in its FAQs: an owner renting out at S$2,500 a month may still have an AV based on S$3,000 a month, because the AV reflects market rent when IRAS reviews it, while the tenancy may have been fixed earlier.

That is why two similar flats can have different AVs: a higher floor, a better view, a renovated unit or a different street can all change the comparable rents. AV matters beyond property tax, too. It is one of the tests for the GST Voucher, for CHAS tiers for households without income, and for MediShield Life premium subsidies. You can see your AV on IRAS’s “View Property Summary” digital service.

The owner-occupier rates

For an owner-occupied home, IRAS applies the following progressive rates, effective from 1 January 2025 and used for 2026 bills.

Source: IRAS, Lower Property Tax Rates for Owner-Occupied Residential Properties; MOF/IRAS release of 28 Nov 2025, Annex A. In 2024 the 0% band covered only the first S$8,000.

Homes that are not owner-occupied pay higher non-owner-occupier residential rates. Owner-occupier rates apply to only one property per owner, and IRAS notes that a married couple can have the owner-occupier rates on only one home between them, whether owned jointly or separately.

The one-off 2026 rebate

On 28 November 2025, MOF and IRAS announced a one-off property tax rebate for owner-occupied homes in 2026: 15% for HDB flats and 10%, capped at S$500, for private residential properties, offset automatically against the 2026 bill. The release said owner-occupiers of three-room and larger HDB flats would see an average increase of S$2 to S$3 a month after the rebate, that half of private owner-occupiers would see an increase of less than S$6 a month, and that all one- and two-room HDB owner-occupiers would continue to pay no property tax.

Worked examples

Calculated from IRAS’s owner-occupier rates and the 2026 rebate. The AVs are invented for illustration and say nothing about any real flat type or estate.

The first row shows how much the 0% band does: with an AV of S$15,000, only S$3,000 is taxed, at 4%. In the last row the rebate cap matters: 10% would have been S$1,382, but it stops at S$500.

Good to know

From 1 January 2026, owner-occupiers whose owners are all aged 65 or above, whose assessable income does not exceed S$39,000 and who have property tax outstanding can apply for the Extended GIRO Scheme for Residential Property (Retirees), which spreads payment over up to 24 months instead of 12.

Paying, and what happens if you are late

The 2026 bills went out from December 2025, with payment due by 31 January 2026. IRAS notifies owners by SMS or email to view the bill on myTax Portal. GIRO allows up to 12 interest-free monthly instalments or a one-time deduction. The MOF and IRAS release warned that a 5% late payment penalty is imposed on those who neither pay nor set up GIRO by the due date, and that owners in financial difficulty can approach IRAS for a payment plan before the deadline.

At the time of writing, IRAS’s published owner-occupier table is still the one effective from 1 January 2025. For the 2027 bill, check iras.gov.sg rather than relying on last year’s rebate, which was described as one-off.

Who this matters for, and what to check

• Owners who live in their home: confirm your bill shows “Owner-Occupier Tax Rates”; if not and you live there, you can apply through IRAS’s digital service.
• Owners of two homes: only one can have owner-occupier rates, and only one per married couple.
• Retirees on modest incomes: check the Extended GIRO criteria for a 24-month plan.
• Anyone surprised by a higher bill: compare your AV with the rents of similar homes on HDB and URA data.
• Households using AV-based schemes: your AV also affects GST Voucher, CHAS and MediShield Life subsidies.

The takeaway

Your property tax depends on two things you can check: the Annual Value IRAS has set and whether the owner-occupier rates apply. With the first S$12,000 of AV taxed at 0%, many HDB owner-occupiers pay little, and one- and two-room flats pay none. The 2026 rebate was one-off, so the bill that arrives for 2027 is worth reading line by line. For other recurring estate costs, see how the S&CC rebate works.