Property Tax Singapore Investment
Category: INVESTING | The Kopi Notes Singapore Investing Glossary | Updated Q1 2026
Property tax on Singapore investment properties is levied by IRAS at progressive non-owner-occupier rates based on Annual Value (AV). From 2024, residential investment properties face rates of 12-36% of AV, significantly reducing net rental yield and making S-REITs comparatively attractive for property-linked income.
For informational purposes only. Not financial advice.
What Is Property Tax in Singapore?
Property tax is an annual tax by IRAS on all property owners based on Annual Value (AV) – the estimated gross annual rent if let on the open market. Two schedules: owner-occupier (lower rates for primary homes) and non-owner-occupier (higher progressive rates for investment properties and second homes).
Non-Owner-Occupier Rates (2024)
| Annual Value (S$) | Tax Rate |
|---|---|
| First S$30,000 | 12% |
| Next S$15,000 | 20% |
| Next S$15,000 | 28% |
| Above S$60,000 | 36% |
Source: IRAS, effective 1 Jan 2024. All non-owner-occupied residential properties.
How Annual Value Is Calculated
AV is IRAS estimate of annual gross rental income if let at market rates – not the actual rent received or purchase price. Check your AV on IRAS myTax Portal. A 3-bedroom condo in a prime district may have AV S$60,000-S$80,000/year.
Impact on Net Rental Yield
For a condo with AV S$60,000 earning S$80,000/year gross: tax = 12% x S$30k + 20% x S$15k + 28% x S$15k = S$10,800/year (13.5% of gross rent). After adding mortgage interest, maintenance, and vacancy, net yields compress to 2-3% – often below CPF OA rate of 2.5%. This makes S-REITs at 5-7% yield often more efficient for income investors. See Net Property Income (NPI).
Commercial and Industrial Rates
Non-residential properties (commercial, industrial) are taxed at a flat 10% of AV regardless of owner-occupier status – no progressive structure. A predictable cost for commercial property investors to factor into yield models.
Frequently Asked Questions
What is the property tax rate for investment properties?
Non-owner-occupier residential properties face progressive rates of 12-36% of Annual Value from 2024. Commercial and industrial properties are taxed at a flat 10% of AV.
What is Annual Value for property tax?
AV is IRAS estimate of annual gross rent the property would generate at market rates. Not based on actual rent or purchase price. Check your AV on IRAS myTax Portal.
Is property tax deductible against rental income?
Yes – property tax is an allowable deduction against rental income for Singapore income tax purposes. Declare rental income to IRAS and deduct property tax paid to reduce taxable rental income.
Does HDB rental attract non-owner-occupier property tax?
HDB owners subletting their entire flat may be reclassified to non-owner-occupier rates once they no longer reside there as their principal home.
How does property tax compare to S-REIT yield?
Investment condo property tax can consume 10-15% of gross rent. Combined with mortgage interest and maintenance, net yields often compress to 2-3%, lower than S-REIT distribution yields of 5-7%.