IRAS: How is property tax computed

How is property tax computed

Property tax is computed as follows:

Property tax payable yearly = Annual Value X Tax Rate

Hence if the Annual Value is $24,000 and the tax rate is 10%,

Property Tax payable = $24,000 X 10%

= $2,400 yearly

The current tax rate is 10%. However, the property tax payable may be lower if you are eligible for owner occupier’s tax rates or any tax concession or relief. Prior to 1 Jan 2011, the tax rate was a flat rate of 4%. With effect from 1 Jan 2011, the progressive owner-occupier’s tax rates have replaced the flat 4% tax rate as follows:

Annual Value ($)Tax Rate (%)

First 6,0000

Next 59,0004

Amount exceeding 65,0006

Computation of Tax Payable from 1 Jan 2011

Annual Value ($)Tax Rate (%) Tax Amount ($)

First 6,000

Next 59,0000

4

0

2,360

First 65,000

Amount exceeding 65,000-

6

2,360

If you own and occupy your home which is currently taxed at 10%, you may apply for the owner occupier’s tax rates.

Computation based on owner-occupier’s tax rates

Example : AV of your house is $9,000

Property Tax payable is:First $6,000 X 0% = $ 0

Next $3,000 X 4% = $120

Tax payable in 2011:= $120

* This is lower than the tax payable in 2010 which was calculated as follows: 4% X $9,000 = $360 per year.

property tax computed.

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