Singaporeans will get another round of property tax relief in 2026. It is the third consecutive year the Government has been offering a rebate since 2024. While the rebate for 2026 is smaller than in previous years, it still helps cushion the rise in property tax bills for many households.
Table of contents
- Up to 15% rebate for all owner-occupied homes
- Who benefits the most from the 2026 property tax rebate?
- A backdrop of strong luxury home demand
- How taxes and rebates benefit the overall system
Up to 15% rebate for all owner-occupied homes
Owner-occupiers of private homes will receive a 10% property tax rebate in 2026, capped at S$500. Meanwhile, HDB flat owners will get a 15% rebate, with 1- and 2-room HDB households continuing to pay no property tax, as their AVs sit below the taxable threshold.
Although the 2026 rebate is smaller than the 2025 version, which offered 20% for HDB and 15% for private homes capped at S$1,000, the reduction is not unexpected. Inflation has eased, and rental growth has stabilised after two years of strong increases.
According to the Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS), in a press release on Friday (Nov 28), the tax relief will ease the impact of property tax increases amid a “moderating residential rental market with modest increases in market rents”.
How AVs push property taxes higher
Property tax is tied to a home’s Annual Value (AV) — the estimated yearly rent the property could fetch if rented out. As the market rental prices climb, AVs follow.
The Budget 2022 adjustments raised tax rates for higher-end owner-occupied homes and all non-owner-occupied homes as part of a broader wealth tax strategy. These higher rates rolled out in 2023 and 2024. When stacked on top of elevated rents, the impact would have been substantial without rebates in place.
Rental prices continued rising through 2024 and into 2025, though at a more moderate pace. By the third quarter of 2025, year-on-year increases reached around 1 to 2% for most HDB flat types and about 2.4% for private homes. These numbers may not seem dramatic, but they still raise AVs enough to bump up tax bills.
However, the new property tax revisions help ease the rising costs of home ownership. The revisions do not change the tax rates but widen the bands at both tails of AV distributions. Effective starting January 2025, the lowest threshold increased to S$12,000 from S$8,000, while the top tier now begins above S$140,000.
| Owner-occupier residential tax rates (%) | Portion of Annual Value (S$) |
|---|---|
| 0 | 0 – 12,000 |
| 4 | >12,000 – 40,000 |
| 6 | >40,000 – 50,000 |
| 10 | >50,000 – 75,000 |
| 14 | >75,000 – 85,000 |
| 20 | >85,000 – 100,000 |
| 26 | >100,000 – 140,000 |
| 32 | >140,000 |
With the change, MOF said homeowners can expect to pay the same or less in property taxes. This is assuming their property’s AV remains the same, and before factoring in any rebates.
The government’s rebate strategy, therefore, works like a shock absorber, preventing sudden jumps in annual tax obligations relating to the higher AVs. The 2026 rebate appears to continue this approach but with a lighter touch as the rental market cools and AV growth moderates.
Who benefits the most from the 2026 property tax rebate?
Around 90% of Singapore homeowners live in their properties, which means the rebate reaches a very large group. This one-off rebate will be automatically offset against any property tax payable in the 2026 property tax bill, which owners will receive from December 2025.
After the tax rebate, homeowners living in 3-room and larger HDB flats will see an average property tax increase of S$2 to S$3 per month, or roughly S$24 to S$36 annually. Those who live in smaller flats, of course, will continue paying no property tax.
For private homeowners, half of them are expected to see increases of under S$6 a month, while the other half will see higher increases due to their higher-value private properties. To receive the full S$500 rebate, a private home needs an AV of roughly S$80,000.
A backdrop of strong luxury home demand
Higher-end homes in the Core Central Region have driven much of the rental and price momentum in recent years. Developers moved 903 new units there in the third quarter of 2025 — a level last seen in 2010. Luxury demand has grown even as mass-market buyers remain cautious.
This trend matters because AVs in the luxury segment have risen faster than in other parts of the market. Districts 9 and 10, for example, recorded over 2,900 rental contracts above S$10,000 per month in the past year.
Properties in these locations will naturally see larger tax adjustments and benefit less from the rebates. However, the typical owner-occupier still pays far less in property tax than investors holding rental properties, which do not qualify for rebates.
Despite the increases, the majority of Singapore properties still sit in moderate AV ranges. In 2024, the median AV of a non-landed private home was about S$33,600, while landed homes averaged S$49,200. 3- to 5-room HDB flats ranged between roughly S$12,600 and S$17,700.
How taxes and rebates benefit the overall system
Property tax has grown into an important contributor to Singapore’s operating revenue. It made up 5.7% (S$6.7 billion) of FY2024 revenue, and the government expected this to rise again in FY2025. As wealth accumulation accelerates and property remains a key asset class, tax policy continues to tighten around higher-value homes.
At the same time, the rebate protects average homeowners from experiencing steep jumps in annual tax bills. It preserves confidence across the wider housing market while maintaining the government’s broader fiscal objectives.
With inflation now stabilising and rents no longer surging at double-digit levels, smaller rebates for 2026 signal a shift back to regular tax policy. Looking ahead, Singaporeans should brace for the possibility that rebates may shrink further — or end altogether — as the property market stabilises.
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