Carbon tax rises to $45 a tonne: what it means for households
The rate for 2026 and 2027 is up from $25, and U-Save rebates help offset higher utility bills.
Singapore's carbon tax is $45 per tonne of carbon dioxide equivalent for 2026 and 2027, up from $25 in 2024 and 2025 and $5 from 2019 to 2023. The government aims for $50 to $80 per tonne by 2030.
The tax applies to facilities that emit at least 25,000 tonnes a year. About 50 such facilities in manufacturing, power, waste and water produce around 70% of national emissions. Companies can offset up to 5% of their taxable emissions with eligible international carbon credits.
The effect on your bill
An average four-room HDB flat can expect utility bills to rise by about $3 a month. U-Save rebates of up to $380 a year help cushion the increase, and more than 950,000 HDB households received up to $190 in January 2026.
Sources: National Climate Change Secretariat, The Straits Times via China Daily
