To make the tax system more progressive, the Government is raising property tax rates for high-end residential properties, with the largest increases applying to investment properties that are not occupied by their owners.
The majority of owner-occupied homes will have lower tax rates.
"This is fair," said Minister of Finance Tharman Shanmugaratnam in his Budget speech on Monday.
"The property tax is a wealth tax and is applied irrespective of whether lived in, vacant or rented out. Those who live in the most expensive homes should pay more property taxes than others."