Landed Property and Property Tax

[lifeafter41]

Saw a couple of posting on Landed properties with cpf.
Question is normally what would be the property tax on a landed property, assuming it's 2500sqft, worth, say 2.5mil.
I might say ,the property tax could be very considerable.

Most of old folks could have bought it many years ago and has since appreciated.
Would it make sense to just sell it and downgrade into a condo/hdb, rather then trying to retain it and pay so much on the taxes.

Even if their intention is to pass it to their sons/daughter, could it be a burden to them to maintain it.
Or simply, they will just sell in and divide the proceed among them, once the old folks are gone.

 

[chongpangchixwings]

IRAS comes up with a NAV on the property and bases the property tax on this figure taking into account whether or not the property is owner occupied.

 

[Runifyouhaveto]

ain't owner occupied properties taxed at a lower rate?

 

[chongpangchixwings]

Yes if it is owner occupied you pay 10% ( ? ) of the stated NAV.

ain't owner occupied properties taxed at a lower rate?

 

[Seee3]

Yes if it is owner occupied you pay 10% ( ? ) of the stated NAV.

That is for prior 2014. From 2014, it is progressive. Note that AV is not the value of the property but the annual market rental value of the property - where there may be disagreements as to how it is determined.


Owner-Occupier Tax Rates

Annual Value
Effective from
1 Jan 2014
Effective from
1 Jan 2015

First $8,000
0%
0%

Next $47,000
4%
4%

Next $5,000
5%
6%

Next $10,000
6%
6%

Next $15,000
7%
8%

Next $15,000
9%
10%

Next $15,000
11%
12%

Next $15,000
13%
14%

AV in excess of $130,000
15%
16%

 

[chongpangchixwings]

Yes this is the updated information thanks.

That is for prior 2014. From 2014, it is progressive. Note that AV is not the value of the property but the annual market rental value of the property - where there may be disagreements as to how it is determined.


Owner-Occupier Tax Rates

Annual Value
Effective from
1 Jan 2014
Effective from
1 Jan 2015

First $8,000
0%
0%

Next $47,000
4%
4%

Next $5,000
5%
6%

Next $10,000
6%
6%

Next $15,000
7%
8%

Next $15,000
9%
10%

Next $15,000
11%
12%

Next $15,000
13%
14%

AV in excess of $130,000
15%
16%

 

[kulgai]

Assuming the landed property is less than S$4m, the property tax is just 4%. It's a small amount. Old folks have trouble adjusting to new environment so they rather stay put for as long as possible.