SINGAPORE - Owner-occupiers of three-room HDB flats or bigger are set to face an increase of $40 to $50 in property tax in 2013.
Lower and middle income owner-occupiers of such flats will be given a one-off rebate of $40 to mitigate the increase in property tax. This will be automatically offset against the property tax payable in 2013.
The increase in property tax comes after the January 2013 revision of Annual Values (AVs) of HDB flats to reflecting the rise in market rentals.
This rebate will not apply to flats which are not owner-occupied. These are currently taxed at 10 per cent.
The AV, which is calculated by the Inland Revenue Authority of Singapore (IRAS) annually, is used as a basis to compute the property tax payable.
It is based on the estimated annual market rent of a property if it were to be let out.
For owner-occupied homes, property tax is calculated based on concessionary tax rates of zero per cent for the first $6,000 of the AV, four per cent for the next $59,000, and 6 per cent for any AV amount exceeding $65,000.
As a result, all one and two-room HDB owner-occupiers will not need to pay any property tax in 2013 as their revised AVs remain below $6,000.
IRAS said today that market rentals of HDB flats have risen by eight to 13 per cent since the last AV revision in January 2012.