One-off property tax rebate in 2026 for owner-occupied HDB and private homes

SINGAPORE – Singaporeans will get a one-off property tax rebate of 15 per cent for owner-occupied HDB flats in 2026 to help mitigate the impact of rising rents on their property taxes.

Those with owner-occupied private residential homes will also get a rebate of 10 per cent, capped at $500, the Ministry of Finance (MOF) and Inland Revenue Authority of Singapore (IRAS) said in a joint statement on Nov 28.

The move will help to cushion property tax increases for Singaporeans, amid a moderating residential rental market with modest increases in market rents, the authorities said.

Property tax is calculated based on a property’s annual value, which is the estimated rent a property can fetch in a year if rented out.

IRAS monitors market rental trends to determine the annual value of properties.

Rents have continued to rise in 2025, with the all-residential rental index increasing for the fifth straight quarter since the third quarter of 2024.

In the third quarter of 2025, median rents grew year on year by 1.4 per cent for three-room HDB flats, 2 per cent for four-room flats, and 1.6 per cent for five-room flats on average, according to property agency ERA.

Meanwhile, overall private residential rents increased by 2.4 per cent year on year for the same period.

These rental increases have resulted in higher annual values for homes, which will likely translate to higher property taxes in 2026.  

For owner-occupied HDB flats, the 15 per cent rebate helps keep the property tax increases manageable for Singaporean households, the Ministry of Finance said in response to The Straits Times’ queries.

“For owner-occupied private homes, the 10 per cent rebate provides similar one-off support in a moderating rental market, recognising the broader range of property values in the private market,” it added.

The Government also provided a rebate in 2025 – 20 per cent for owner-occupied HDB flats and 15 per cent for owner-occupied private residential properties, capped at $1,000. This was

aimed at easing cost-of-living concerns for home owners

.

Mr Eugene Lim, key executive officer of ERA Singapore, noted: “Compared with 2025, the tax rebates for HDB and private homes are 5 percentage points lower in 2026, and the cap has decreased from $1,000 to $500.

“Despite the reduced rates and cap, these rebates are intended as temporary relief from rising rents, rather than a long-term subsidy.”

Moreover, Singapore’s core inflation rate was 1.2 per cent in October, down from 2.1 per cent a year earlier, which also likely accounts for the lower property tax rebates for 2026, Mr Lim noted.

“The rebates remain a temporary measure to help Singaporeans cope with rising living costs until rents stabilise,” he said.

The latest rebate will be automatically offset against any property tax payable in the 2026 property tax bill, which owners will receive from December 2025.

Home owners living in three-room and larger HDB flats will see an average property tax increase of $2 to $3 per month, after the tax rebate.

All one- and two-room HDB owner-occupiers will continue to pay no property tax.

Half of private property owner-occupiers will see a property tax increase of less than $6 per month, after the property tax rebate.

The rest will see higher property tax increases, with their properties generally being of higher value.

Based on the gradual reduction in property tax rebates from 2024 to 2026, property portal Mogul.sg’s chief research officer Nicholas Mak believes that the Government’s aim is to increase property tax collections from private properties as well as from bigger HDB flats.

But the increase in property taxes for 2026 would not be excessive for most owner-occupied properties.

“The increase in property taxes would range from $24 to $36 per year for HDB flat owners. And for half of private property owners, the taxes increase by less than $72 per year,” he added.

Home owners will receive SMS or e-mail notifications from IRAS about their tax bills and payment due dates.

They can also check their tax bills at 

myTax Portal.

Eligible retirees may apply for the Extended GIRO Scheme for Residential Property (Retirees), which offers a longer instalment plan of up to 24 months for property tax payment.

To be eligible, the property owners must be aged 65 or above and live in the property they own, and the applicants’ assessable income must not exceed $39,000.