SINGAPORE - As the rental market slows, 93 per cent of residential property owners will pay less tax in 2016 after the taxman marked down the annual values of their homes.

All Housing Board flat owners will pay lower or no property tax next year while eight in 10 private residential property owners will pay lower property tax in 2016, the Inland Revenue Authority of Singapore said on Monday.

This is in contrast to the 2014 review for the 2015 levy when only 25.7 per cent of private homes had their annual values reduced.

Among the private homeowners getting their annual values cut this round, more than 80 per cent will see tax savings of between 3 per cent and 20 per cent.

Meanwhile, HDB flat owners will enjoy tax savings of 9 per cent to 24 per cent, compared to what they paid in 2015.

In addition, all one- and two-room HDB flat owner-occupiers and 28,200 three-room HDB flat owner-occupiers will not have to pay any property tax when the revised annual values take effect from 1 Jan 2016.

Letters have been sent to home owners to outline their levies for the coming year.