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Property Tax vs Income Tax on Rental: What Singapore Landlords Pay (and Why)

Letto Team·February 10, 2026·7 min read

Property Tax vs Income Tax on Rental: What Singapore Landlords Pay (and Why)

One of the most common points of confusion among Singapore landlords is the difference between property tax and income tax on rental income. Some landlords assume that because they already pay property tax, their rental income is covered. It is not. These are two entirely separate taxes, administered by IRAS, with different calculations, rates, and filing requirements.

Property Tax: A Tax on Ownership

Property tax is levied on all property owners in Singapore, regardless of whether the property is rented out, owner-occupied, or sitting vacant. You pay it simply because you own the property.

How It Is Calculated

Property tax is based on the Annual Value (AV) of your property. The AV is IRAS's estimate of the annual rental income your property could generate if it were rented out — not what you actually receive.

Property Tax = Annual Value × Tax Rate

IRAS reviews and adjusts AVs periodically to reflect market conditions. You can check your property's current AV on the IRAS website.

Tax Rates Depend on Occupancy Status

The tax rates differ significantly based on whether the property is owner-occupied or not:

Owner-Occupied Residential Rates (Progressive)

| Annual Value | Tax Rate | |-------------|----------| | First $8,000 | 0% | | Next $22,000 | 4% | | Next $10,000 | 5% | | Next $15,000 | 6% | | Next $15,000 | 7% | | Next $15,000 | 10% | | Next $15,000 | 14% | | Next $15,000 | 20% | | Above $115,000 | 32% |

Non-Owner-Occupied Residential Rates (Progressive)

| Annual Value | Tax Rate | |-------------|----------| | First $30,000 | 12% | | Next $15,000 | 20% | | Next $15,000 | 28% | | Above $60,000 | 36% |

The difference is substantial. For a property with an AV of $36,000:

  • Owner-occupied: approximately $1,240
  • Non-owner-occupied: approximately $4,800

That is nearly 4 times more in property tax when the property is rented out.

When to Notify IRAS

You must inform IRAS when your property's occupancy status changes:

  • Moving out and renting it to a tenant
  • Tenant leaving and you moving back in
  • Property becoming vacant

Failure to update your property's status can result in overpayment (if you are still being charged non-owner-occupied rates after moving back in) or penalties (if you are enjoying owner-occupied rates while the property is rented out).

2026 Owner-Occupied Rebate

For 2026, the Singapore government is providing a one-off property tax rebate of up to 15%, capped at $500, for all owner-occupied residential properties. This does not apply to rented-out properties.

Income Tax: A Tax on Rental Earnings

Income tax on rental is separate from property tax. It is levied on the actual rental income you earn from renting out your property. This is filed as part of your annual personal income tax return.

How It Is Calculated

Your taxable rental income is:

Net Rental Income = Gross Rent Received − Allowable Expenses

This net rental income is then added to your other income (employment, dividends, etc.) and taxed at Singapore's progressive personal income tax rates, which range from 0% to 22%.

Key Differences from Property Tax

| Feature | Property Tax | Income Tax on Rental | |---------|-------------|---------------------| | Based on | Annual Value (estimated market rent) | Actual rent received | | Paid by | All property owners | Only those who earn rental income | | Frequency | Annual (billed by IRAS) | Annual (self-declared in tax return) | | Rate structure | 0–32% (owner-occupied) or 12–36% (non-owner-occupied) | 0–22% (progressive personal rates) | | Expense deductions | Not applicable | Yes — actual or 15% deemed expenses | | Vacancy | Still payable even if property is vacant | No income = no tax |

You Pay Both

If your property is rented out, you pay both property tax (at non-owner-occupied rates) and income tax on the rental income received. They are not alternatives — they stack.

However, the property tax you pay is itself a deductible expense against your rental income. So while you pay both, the property tax reduces your taxable rental income for income tax purposes.

The Circular Deduction: Property Tax as a Rental Expense

This is a detail many landlords miss. The property tax you pay on your rental property is an allowable deduction against your rental income for income tax purposes.

Example:

  • Gross rent: $48,000/year ($4,000/month)
  • Property tax paid: $4,800/year (non-owner-occupied rate)
  • Other expenses: $8,000

Net rental income = $48,000 − $4,800 − $8,000 = $35,200

The $4,800 property tax reduces your taxable rental income. You still pay the $4,800 to IRAS as property tax, but you save income tax on that amount.

Note: If you use the 15% deemed expense method, property tax is already covered within the 15% — you cannot claim it separately on top.

Common Scenarios

Scenario 1: Switching from Owner-Occupied to Rented

You move out and rent your condo to a tenant starting in July.

  • Property tax: IRAS will adjust your rates. January–June at owner-occupied rates, July–December at non-owner-occupied rates. You must notify IRAS of the change.
  • Income tax: Declare rent received from July to December. Expenses are only deductible for the rental period.

Scenario 2: Property Vacant Between Tenants

Your tenant leaves in March and a new tenant moves in June.

  • Property tax: You still pay property tax for the vacant months. The rate depends on your property's classification during that period.
  • Income tax: No rental income for April–May. From YA 2022, expenses incurred during the vacancy (repairs, property tax, insurance) may be deductible if you made reasonable efforts to find a tenant.

Scenario 3: Partially Rented Out

You rent out one room of your HDB flat while living in it.

  • Property tax: The property may still qualify for owner-occupied rates if you live in it as your primary residence.
  • Income tax: The rent received from the room must be declared. You can deduct a proportionate share of expenses attributable to the rented room.

Filing Requirements Summary

| Tax | How | When | What to Declare | |-----|-----|------|----------------| | Property tax | IRAS bills you directly | Annual (January bill) | Nothing — IRAS calculates and bills you | | Income tax | Self-declare in tax return | April each year (e-Filing by 18 April) | Gross rent, expenses, net rental income |

For income tax, you must actively declare your rental income. Do not assume IRAS knows how much rent you collected just because they have your tenancy agreement stamped. While IRAS may pre-fill some information, it is your responsibility to verify and correct the figures.

Key Takeaways

  • Property tax and income tax on rental are completely separate taxes — you pay both
  • Property tax is based on Annual Value; income tax is based on actual rent received
  • Rented properties are taxed at much higher property tax rates (12–36%) than owner-occupied (0–32%)
  • Property tax paid is deductible against rental income for income tax purposes
  • Notify IRAS whenever your property's occupancy status changes
  • Always verify IRAS pre-filled rental income figures in your tax return