In the 2010 Budget unveiled on 22 February 2010, the Government announced a new three tiered property tax rate for owner-occupied residential properties. The first S$6,000 of the Annual Value ("AV") of the property will be exempted from property tax. The next S$59,000 will be taxed at 4%, and the balance of AV in excess of $65,000 will be taxed at 6%.

This new scheme will be applicable to property tax payable from January 2011 onwards and will replace the current flat rate of 4% for all owner-occupied residential properties. It translates to a saving of up to S$240 for properties with an AV of less than S$65,000. The property tax for non-owner-occupied residential properties will remain at 10% of the AV.