Home Buyer (General) : Property Tax

Q1: What is property tax?
Q2: What is the rate of property tax?
Q3: Does the owner-occupier's concessionary tax rate apply to companies with ownership of the property?
Q4: If I reside in 3 different properties, can I be granted the owner-occupied rate for all the 3 properties?
Q5: If I own a HDB flat and a private apartment, can I choose to have the owner-occupied rate of 4% for the private apartment?
Q6: I have just purchased a property and found out that the previous owner did not pay for the outstanding property tax prior to the sale. Am I then liable to pay for him?
Q7: How can I find out the amount of property tax for the property I wish to purchase?
Q8: How can I be sure that the Seller has already paid for the property tax ?
Q1: What is property tax?

It is a tax payable by a property owner, based on the annual value of the property. The annual value is calculated from the potential gross rental the property can generate in a year after deducting the costs for repairs, insurance, and maintenance (excluding GST).

Q2: What is the rate of property tax?

The property tax rate varies. If you are occupying the property, the property tax is only 4% of the annual value of the property. If the property is not owner-occupied, you have to pay the tax rate of 12% of the annual value of the property. Foreigners have to pay a surcharge for landed properties at 10% of the annual value of the property.

 

Q3: Does the owner-occupier's concessionary tax rate apply to companies with ownership of the property?

No. Only individual owners are qualified. Even if the property owned by a company has been used as living quarters for employees, the company is still liable for the property tax rate of 12%.

Q4: If I reside in 3 different properties, can I be granted the owner-occupied rate for all the 3 properties?

No. You can only be granted the owner-occupied rate for only 1 property.
Q5: If I own a HDB flat and a private apartment, can I choose to have the owner-occupied rate of 4% for the private apartment?

No. If you own both a HDB flat and a private apartment, the owner-occupied rate can only be for your HDB flat. However, if you own 2 private properties, you may then choose to have the owner-occupied rate for any of them.
Q6: I have just purchased a property and found out that the previous owner did not pay for the outstanding property tax prior to the sale. Am I then liable to pay for him?

Unfortunately, the government looks to the property and not the owner for collecting the property tax. Therefore, in this case, you are liable to pay for the property tax bills for the previous owner.
Q7: How can I find out the amount of property tax for the property I wish to purchase?
The easiest way to find out is to ask the Seller for his current property tax bill.
Q8:

How can I be sure that the Seller has already paid for the property    tax ?
Your Lawyer can request for the Seller to produce the receipt for property tax or the Confirmation Note issued by the Comptroller of Property Tax.
 
 
 
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