With the latest Budget released for 2010 by Financial Minister Tharman Shanmugaratnam, property tax computation for home owners will be on a 3-tier progressive scheme.
Based on Annual Value (AV) of your owner occupied home, the tiers are as follows:-
- 0% on your first $6,000 of AV
- 4% on the next $59,000 of AV
- 6% on anything above $65,000 of AV
There is already a new online calculator available based on the new tax tier on IRAS website for you to computate your 2011 property tax should you be able to know the latest AV of your home.
Rationale for New Property Tax Tier
Mr Tharman explains that with a moderately progressive property tax system, together with an income tax system that collects more taxes from better-off individuals and a flat GST rate that everyone pays, will form a fair system of taxes as a whole.
And with such, this tax system will benefit most Singaporeans.