RES exam question on Taxes & Duties: property tax is payable on his home for 2026
Mr Lim lives in the only home he owns, a condominium he bought for $1,400,000. IRAS assesses its Annual Value for 2026 at $18,000, and similar units in the block let for about $1,700 a month. What property tax is payable on his home for 2026?
- A$400
- B$240
- C$720
- D$2,160
Show answer & explanation
Answer
B. $240
Explanation
Answer: $240. On the current owner-occupier scale the first $12,000 is at 0% and the next $6,000 at 4%.Working:1. $12,000 at 0% is nil.2. $6,000 at 4% is $240.Watch out: The price and the market rent play no part once the Annual Value is fixed.Rule: The owner-occupier scale is 0% on the first $12,000 of Annual Value, 4% on the next $28,000, 6% on the next $10,000 and upwards to 32% above $140,000. The non-owner-occupier scale starts at 12% on the first $30,000.Source: Owner-occupier scale from 1 January 2025; non-owner-occupier scale unchanged since 1 January 2024; IRAS, Lower Property Tax Rates for Owner-Occupied Residential Properties (read 1 Oct 2026)
Why the other options are wrong
- The 2024 owner-occupier scale: $400 is the answer on the 2024 scale, whose 0% band stopped at $8,000.
- 4% on the whole Annual Value: $720 charges 4% on the whole value. The first $12,000 is at 0%.
- The non-owner-occupier scale: $2,160 is the non-owner-occupier figure, at 12% on the first $30,000. He lives there.
Study the concept behind this question: Property Tax, GST & Tenancy Stamp Duty in Singapore
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