In his Budget 2024 speech, DPM Lawrence Wong announced that the annual value (AV) bands for owner-occupied properties are raised from 2025 onwards, allowing some home owners to pay less property taxes as a result.
The lowest AV band threshold will be raised from S$8,000 (US$5,900) to S$12,000. The highest threshold will increase from over S$100,000 to over S$140,000. Corresponding adjustments will be made to bands in between.
Home owners can expect to pay the same or lower property taxes at each band, assuming that there is no change in their AVs and before any rebate.
Property taxes are calculated based on AVs, which are based on the estimated yearly rent if a property was rented out. Owner-occupied homes – where the owner lives in the property – pay lower tax rates.
DPM Wong has clarified in his speech that the change will still ensure that those residing in higher-value properties continue to pay their fair share of taxes.
To soften the impact of property tax changes this year, DPM Wong has also announced that the government will provide a one-off rebate of up to 100 per cent.
He added that the government will continue to monitor the property market and provide another rebate next year if needed.
DPM Wong has also announced that the Inland Revenue Authority of Singapore will offer them a 24-month instalment plan without interest to assist retirees living in higher-end residential homes and have limited cash flow.
To date, married couples with an existing property can enjoy an Additional Buyer’s Stamp Duty (ABSD) refund on their replacement private property under a concession. This concession will be extended to single Singaporeans aged 55 and above.
Seniors that fall under that age group will be able to claim a refund of ABSD paid on their replacement private property provided if they sell their first property within six months after buying a lower-value replacement private property.
Featured Image Credit: Singapore Government
