Singaporean homeowners will receive a one-off property tax rebate in 2026 to help ease the impact of rising annual values, as rents continue to edge upward across both public and private housing markets.
The Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS) announced the measures in a joint statement on Friday, November 28.
Under the scheme, owner-occupied HDB flats will receive a 15 per cent rebate on property tax for 2026. Owner-occupied private residential properties will get a 10 per cent rebate, capped at S$500. The authorities said the move aims to cushion households from higher property taxes at a time when the residential rental market is seeing modest but steady increases.
Property tax is calculated based on a home's annual value — the estimated yearly rental income it could command. IRAS regularly tracks market rental trends to determine these values. With rents rising over the past year, annual values are expected to climb, resulting in higher tax bills for many homeowners next year.
Market data from ERA shows that in the third quarter of 2025, median rents rose year on year across most HDB flat types: by 1.4 per cent for three-room units, 2 per cent for four-room flats, and 1.6 per cent for five-room homes. Private residential rents increased by 2.4 per cent over the same period. This marks the fifth consecutive quarter of rental growth since late 2024.
In its response to media queries, MOF said the rebate for HDB households will help keep tax increases "manageable." The lower, capped rebate for private homes reflects the wider range of property values in that segment, it added.
The government had provided a similar rebate in 2025, offering 20 per cent for owner-occupied HDB flats and 15 per cent for private homes, capped at S$1,000. This year's reduced rates reflect easing inflationary pressures and the intention for the rebate to serve as short-term relief, said ERA Singapore's key executive officer, Eugene Lim. He noted that core inflation fell to 1.2 per cent in October, down from 2.1 per cent a year earlier.
Lim added that while the rebates are smaller in 2026, they remain a temporary measure to support Singaporeans until rental markets stabilise.
The rebates will be automatically applied to property tax bills for 2026, which homeowners will begin receiving from December 2025. After accounting for the rebate, households in three-room and larger HDB flats are expected to see their monthly property tax rise by about S$2 to S$3. One- and two-room owner-occupiers will continue to pay no property tax.
Among private homeowners, half will see increases of less than S$6 a month after the rebate, while higher-value properties will incur larger adjustments.
Commenting on the pattern of gradually reduced rebates between 2024 and 2026, Mogul.sg's chief research officer Nicholas Mak said that the government appears to be aiming to increase tax collections from private homes and larger HDB flats. However, he stressed that the increase remains modest, with annual rises estimated at S$24 to S$36 for HDB owners and less than S$72 for half of private homeowners.
IRAS will notify homeowners via SMS or e-mail about their tax bills and payment deadlines. They may also view their bills on the myTax Portal.
Retirees who meet the criteria may apply for the Extended GIRO Scheme, which allows property tax payments to be spread over up to 24 months. To qualify, applicants must be at least 65 years old, live in the property they own, and have an assessable income not exceeding S$39,000.
