Buyers and owners routinely confuse property tax with stamp duty. They are entirely different costs, and property tax is the one you pay every year for as long as you own the home.
Property tax is not about what you paid
Property tax is calculated on Annual Value (AV), IRAS's estimate of the gross annual rent your property could fetch on the open market, unfurnished, not on your purchase price or its current market value. AV is reviewed periodically as rentals move, so your tax bill can change even without any change of ownership or use. You can check a property's current AV, and object to it within 30 days of your tax bill, on the IRAS portal.
Owner occupied rates
If you live in the property as your principal home and have applied for owner occupier status, the first $12,000 of AV is taxed at 0%. Higher bands of AV are taxed at progressively steeper rates, from 4% up to a top rate of 32% on the highest band. Owner occupier status applies to only one property per owner, the one you actually live in, and it is not automatic, you must apply for it with IRAS.
Non owner occupied rates
A rented out or vacant property is taxed on a separate, steeper schedule with no 0% band: 12% on the first $30,000 of AV, 20% on the next $15,000, 28% on the next $15,000, and 36% above $60,000. This is why an investment condo's annual property tax bill is meaningfully higher than an owner occupied home with a similar AV, even before accounting for the rental income it generates.
A simple worked example
An HDB flat with an AV of $12,000, occupied by the owner, pays $0 in property tax, the entire AV sits inside the 0% band. The same flat rented out instead, still at an AV of $12,000, is taxed at 12% from the first dollar, a bill of $1,440 a year. That gap is the practical cost of misrepresenting or failing to apply for owner occupier status, and it is why IRAS treats false declarations as a tax offence.
Frequently asked questions
Do I pay property tax if my property is empty but I don't rent it out?
Yes. Property tax is charged on ownership, not on whether the unit is actually used. A vacant property is taxed on the non owner occupied scale because it has not been granted owner occupier status, whether or not you ever rent it out.
Is property tax calculated on what I paid for my home?
No. It is calculated on Annual Value, IRAS's estimate of the property's annual rental potential, reviewed periodically and independent of your purchase price or current resale value.
Can I use CPF to pay my property tax bill?
No. Property tax is paid annually in cash and CPF cannot cover it, unlike Buyer's Stamp Duty, which can be reimbursed from CPF Ordinary Account savings for a qualifying purchase.
Not sure what your annual holding cost really is?
Winfred models your property tax alongside mortgage, MCST and the rest of your true annual cost of ownership, before you commit to a purchase.
Book a free 30 minute callWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Rates and rules reflect the position as at 5 Aug 2026; verify current figures with IRAS, HDB, or MAS before making any decision.