It’s the start of the year again, and it can only mean two things - you've just drawn up list of personal finance resolutions, and if you own a property, your property tax is about to be due soon.
Property tax is a tax on property ownership, and applies to you regardless if your property is occupied, rented out, or left vacant. You will receive this tax bill every end of the year, and payment is due on every 31st of January.
How is property tax calculated?
How much property tax you pay each year is based on your home’s Annual Value. This Annual Value is defined as:
- The estimated gross annual rent of your property
- This is not including furniture, furnishings and general maintenance costs
The Annual Value may change every year as rental prices swing up and down, but rest assured that when this happens, the tax authorities will send out a note to notify you of any changes.
In any case, you can also log in to myTax Portal any time to check your property’s Annual Value. There is also a handy calculator here where you can plug in your Annual Value to calculate how much property tax you will be paying.
Paying your property tax by credit card via CardUp
As with every tax bill, it is not a payment that all of us look forward to. But also, as with every tax bill (income tax and stamp duty included), your property tax can also be put on your credit card through CardUp!
If your list of resolutions includes spending more smartly this year, here's how CardUp can help you kill two birds with one stone by letting you earn rewards and save on your property tax payment.
✈️ Scenario 1: If you use an air miles card
While simply putting your property tax payments on your credit card might not earn you sufficient air miles for most flights, combining them with other spend might just earn you a luxurious flight out!
For example, if you have an Annual Value of $38,000, your property tax will be:
By combining your tax bill with other CardUp spend, here's how many air miles you could earn in a year:
In the example above, you're able to earn sufficient air miles to fly to Perth on Business Class (worth about $2,700), while paying just approximately $1,100 in fees - that's almost 60% in savings!
💰 Scenario 2: If you prefer cashback cards
Similarly, you can also use a cashback card to get additional savings on your tax bill. One of the most popular cashback cards in the market is the UOB One Card, which gives you up to 5% cashback on all expenses, including CardUp spend!
By working in your property tax payment smartly into your payment schedules, you'll be able to save 5% on this payment - not bad for a tax bill!
Here's how you can pay your property tax with your cards on CardUp:
- Sign up for a free CardUp account and log in
- Schedule a payment, and select Property Tax under the Taxes & Stamp Duty payment category
- Fill in the payment amount as per the outstanding balance as shown in your property tax bill. Do note that you can only set up a one-off property tax payment to the tax authorities via CardUp each year!
- Select the payment due date
- Upload an up-to-date copy of your Statement of Account, showing your name, NRIC, property tax reference number, outstanding balance and date of outstanding balance for us to verify your payment.
- Select your credit card, review and confirm your payment, and you're good to go!
As we slowly creep towards the 31st January tax bill due date - do remember to schedule your property tax payments at least three days in advance to allow for the payments to reach the tax authorities on time!
Tags: Savings & Rewards