Property tax rates for residential properties will be raised in two steps, starting with the tax payable in 2023, with properties at the higher end seeing steeper hikes.
Finance Minister Lawrence Wong said on Friday (Feb 18) that the property tax rates for non-owner-occupied residential properties - which include investment properties - will be increased to 12 per cent to 36 per cent.
This compares with the current 10 per cent to 20 per cent tax levied on such properties.
This means all non-owner-occupied properties will face higher property taxes, with the increase more significant for properties with a higher annual value.
At the same time, the property tax rates for owner-occupied homes for the portion of annual value in excess of $30,000 will also be raised, ranging from 6 per cent to 32 per cent.
This compares with 4 per cent to 16 per cent for such portion of annual value today.
This increase will impact the top 7 per cent of owner-occupied residential properties, Mr Wong said in his Budget speech.
Owner-occupied homes with an annual value of $30,000 or less, such as Housing Board flats or condominiums and landed property in suburban areas, will not be affected by the increase in property tax rates.
The final tax rates of up to 36 per cent for non-owner-occupied homes or 32 per cent for owner-occupied residential properties will take effect for tax payable from 2024.
When fully implemented, these changes will raise Singapore's property tax revenue by about $380 million a year.