Selangor's Property Tax Hike: A Modest Revision with Exemptions for Low-Cost Homes

Selangor is revising its property assessment tax rates for the first time in nearly 30 years, with a 25% hike set to begin on January 1, 2025. This follows earlier proposals for a much steeper increase, some exceeding 100%. However, after town hall consultations, the state government has capped the hike at 25% for most properties, and even reduced it further in some areas like Shah Alam (down to 22%).

For example, a two-storey house in Shah Alam that previously paid RM288 annually in tax will now pay RM585, but with a capped increase of just RM360. The increase is aimed at improving local services and infrastructure, though low-cost homes, including SelangorKu houses, are exempted, costing the state RM60 million. This targeted relief also extends to traditional village homes, benefiting thousands of homeowners.

The tax hike varies by property type, with residential rates at 3.25%, commercial properties at 6.75%, and industrial properties at 7%. Some councils, like Kajang, will phase in the increase gradually to ease the impact. Despite initial concerns, the overall tax revision is seen as a necessary adjustment after decades without change, aimed at enhancing the quality of public services.