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RES exam question on Taxes & Duties: tax, before any rebate

HardProperty Taxes (BSD, ABSD, SSD) · Paper 2

Mr Goh lives in his condominium unit, his only property, and lets one bedroom to a student at $1,200 a month. IRAS has assessed the unit's annual value at $36,000 for 2026. He asks his salesperson how much property tax the unit attracts for the year. What is the tax, before any rebate?

  1. A$4,800
  2. B$1,440
  3. C$960
  4. D$1,728
Show answer & explanation

Answer

C. $960

Explanation

Answer: $960. Mr Goh still lives in his only property, so owner-occupier rates apply; letting a room does not change that.Working:1. First $12,000 x 0% = $0.2. $36,000 - $12,000 = $24,000.3. $24,000 x 4% = $960.4. Tax = $0 + $960 = $960.Rule: Owner-occupier rates apply while the owner lives in the property, even if he lets a room; letting the whole unit or leaving it vacant moves it to non-owner-occupier rates. Owner-occupier rates (from 1 Jan 2025) are 0% on the first $12,000 and 4% on the next $28,000; non-owner-occupier rates (from 1 Jan 2024) are 12% on the first $30,000 and 20% on the next $15,000.Source: the RESPrep study notes, property tax section; RESPrep /learn/property-tax-gst-and-leasing; IRAS, current at 1 Oct 2026

Why the other options are wrong

  • $4,800 at non-owner-occupier rates: $30,000 x 12% + $6,000 x 20% = $4,800 is the figure for a wholly let unit.
  • $1,440, 4% on the whole value: Charging 4% on the whole $36,000 ignores the 0% first tier.
  • $1,728, 12% of the room rent: The $14,400 of room rent is income for income tax, not the base for property tax.

Study the concept behind this question: Property Tax, GST & Tenancy Stamp Duty in Singapore

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Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.