Whether you’re a seasoned investor or a first-time homeowner, understanding property tax and income tax in Singapore is essential. While taxes may seem daunting at first, they are quite straightforward once you get the hang of them. Let’s break down the key details you need to know.
Property Tax: What You Should Know
Property tax in Singapore is an annual tax imposed on property owners. It is calculated based on the annual value (AV) of the property, which is an estimate of how much rent the property could fetch in a year. The AV is determined by the Inland Revenue Authority of Singapore (IRAS).
Check Annual Value
Types of Property Tax Rates:
- Owner-Occupied Residential Properties: Lower tax rates apply to properties you live in.
- Non-Owner-Occupied Residential Properties: If you rent out the property, higher tax rates are applied.
- Non-Residential Properties: Commercial and industrial properties have a flat tax rate.
Owner-Occupied Residential Tax Rates (2024):
- 0% on the first $8,000 of AV
- 4% on the next $22,000 of AV
- Progressive rates go up to 32% for AV exceeding $100,000
Owners Occupied Property Tax Rates 2025
Non-Owner-Occupied Residential Tax Rates:
- Start at 11% for the first $30,000 of AV
- Go up to 36% for AV exceeding $100,000
Non-Owners Occupied Property Tax Rates 2025
Why This Matters: If you’re renting out properties, understanding the different tax brackets helps you plan your rental returns better.
Income Tax: A Breakdown for Individuals
Income tax in Singapore is imposed on your income earned in the country. The great news? Singapore has one of the most competitive personal income tax rates in the world.
Tax Resident vs. Non-Resident:
- You are considered a tax resident if you stay or work in Singapore for at least 183 days in a year.
- Non-residents are taxed at a flat rate on their Singapore-sourced income.
Progressive Tax Rates for Residents (2024):
- 0% for the first $20,000 of chargeable income
- 2% for the next $10,000
- Rates gradually increase to 24% for income over $1 million
Singapore Resident Tax Rate TA2024
Tax Deductions and Reliefs:
- Parent relief, spouse relief, and working mother child relief can reduce taxable income.
- CPF contributions, life insurance premiums, and charitable donations also offer tax benefits.
Non-Resident Tax Rates:
- Employment income is taxed at 15% or the resident rate (whichever is higher).
- Director’s fees and other income are taxed at 24%.
Tips to Manage Your Taxes
- File On Time: Personal income tax filing typically opens in March and closes by mid-April.
- Keep Records: Maintain proper records of your rental income, property expenses, and employment income to avoid discrepancies.
- Use Reliefs Wisely: Maximize the available tax reliefs to lower your overall taxable income.
By staying informed about Singapore’s tax landscape, you can make smarter financial decisions, whether for your home or investments. Happy tax planning!